S&U (LSE: SUS)

Currency in GBP

Last close As at 23/03/2023

GBP22.75

25.00 (1.11%)

Market capitalisation

GBP273m

S&U’s Advantage motor finance business lends on a simple HP basis to lower- and middle-income groups that may have impaired credit records restricting access to mainstream products. It has c 65,000 customers. The Aspen property bridging business has been developing since its launch in 2017.

Looking ahead, S&U acknowledges the likely low levels of consumer confidence and spending this year in the UK, but still sees good opportunities for responsible lending against this background. Our forecasts are unchanged at this point and already factor in more modest loan growth, increased interest costs and further normalisation of loan loss provisioning for FY24.

Latest Insights

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Financials

S&U — FY23 results set to meet expectations

Financials

S&U — Positive trading update

Financials

S&U — H1 growth ahead of expectations

Sector

Financials

Equity Analyst

Andrew Mitchell

Andrew Mitchell

Director, Financials

Key Management

  • Anthony Coombs

    Executive Chairman of the Board

  • Chris Redford

    FD

Balance Sheet

Forecast net cash (£m)

185.5

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 5.3 5.8 (5.2)
Relative 10.4 4.7 (4.2)
52 week high/low 2510.0p/1905.0p

Financials

S&U’s year-end trading update confirmed that trading for both Advantage motor finance and Aspen property bridging remained excellent since the last update in December. Year-end group net receivables were c £420m, up 13% from H123 and a 30% increase over the year. At Advantage, transactions reached nearly 24,000, with volume unaffected by the normal seasonal slowdown in December. Aspen has continued to make progress and repayment quality is good but S&U notes a slowing in the housing market, which has prompted increases in Aspen interest rates and loan to value requirements. Full-year results, due on 28 March, are expected to meet expectations and be above budget.

Y/E Jan Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2021A 83.8 22.2 18.1 120.7 18.8 8.4
2022A 87.9 51.3 47.0 312.7 7.3 N/A
2023E 102.6 49.2 41.2 276.2 8.2 N/A
2024E 121.0 58.1 42.5 265.6 8.6 404.2

Research

Financials

S&U — FY23 results set to meet expectations

Financials

S&U — Positive trading update

Financials

S&U — H1 growth ahead of expectations

Financials

S&U — Seeing recovery and adapting to grow

Financials

S&U — FY22 profit beat and positive outlook

Financials

S&U — Upbeat update

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