S&U (SUS)

Business description

S&U’s Advantage motor finance business lends on a simple hire purchase basis to lower- and middle-income groups that may have impaired credit records which restrict their access to mainstream products. It has around 50,000 customers currently.

Stock data

Market cap.£266.8m
Last close2,225.50p
High / Low (52 weeks)2275.0p / 1883.5p
Stock market listingLN
Forecast net cash (£m)97
Forecast gearing ratio (%)N/A
TeamFinancials
SectorFinancials

Price performance

%1m3m12m
Actual6.511.8(1)
Relative *8.512.3(10.3)

* % Relative to local index

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Company news

S & U's Advantage Finance in the driving seat

Fri, 10 Feb 2017 14:33:23 GMT

With 21.4% Earnings Growth Lately, Did S&U plc (LSE:SUS) Outperform The Industry?

Mon, 30 Oct 2017 07:29:20 GMT

Should Income Investors Buy S&U plc (LSE:SUS) Before Its Ex-Dividend?

Sun, 15 Oct 2017 13:30:00 GMT

S & U motors on

Tue, 28 Mar 2017 08:00:13 GMT

'Business is very good' - S & U chairman Anthony Coombs

Fri, 19 May 2017 10:09:52 GMT

Investment summary

Loan growth for H118 (to end July) at S&U’s motor finance business remained strong at 30%, even though lending criteria have been tightened following a previous mix change towards higher-risk customers. This move contributed to a rise in impairments but pre-tax profits and earnings per share still increased by more than 20%. Impairments are set to stabilise as the portfolio rebalances, while the company’s focus on providing hire purchase loans to non-prime borrowers for used vehicles using a well-established underwriting system should provide reassurance to investors concerned about the wider motor finance market.

Last updated on 02/11/2017

Y/E Jan Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2016A 45.2 21.5 19.5 132.4 16.8 N/A
2017A 60.5 27.1 25.2 169.1 13.2 N/A
2018E 80.0 33.8 30.3 201.9 11.0 N/A
2019E 95.6 41.6 35.5 235.8 9.4 N/A

Last updated on 18/10/2017

Latest research

Strong loan growth continues

Update | Financials | 05/10/2017

Strong growth, cautious approach

Outlook | Financials | 07/04/2017

Trading remains strong

Update | Financials | 13/02/2017

Strong growth continues

Update | Financials | 15/12/2016

Motor finance drives growth, bridging an option

Update | Financials | 12/10/2016

Strong growth, strong balance sheet

Update | Financials | 20/05/2016

Growth opportunities and delivery

Outlook | Financials | 01/10/2015

Focus on growing car finance

Update | Financials | 20/07/2015

Growth as promised, more to come

Update | Financials | 31/03/2015

Daily comment

Institutional Comment | Financials | 24/03/2015

Daily comment

Institutional Comment | Financials | 13/02/2015

SUperb growth continues

Outlook | Financials | 01/10/2014

Latest video

Executive Interview – S&U

Industry outlook

While there is regulatory concern over the growth in consumer lending in general, including the overall motor finance market, S&U does not offer PCP contracts, which have been the main source of growth and concern in this area. With most of its lending being used to fund used cars (average loan c £6,200), which provide customers with transport to work, S&U's main concern would be a rise in unemployment. Meanwhile demand for loans remains strong and there is good scope for S&U to continue to gain market share from its current level of c 1%.

Last updated on 02/11/2017

Key management

Chris Redford, FD
Anthony Coombs, Executive Chairman of the Board

Company address

Royal House
Prince's Gate
Homer Road
Solihull
B91 3QQ
United Kingdom
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