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.£237.4m
Last close1,982.00p
High / Low (52 weeks)2534.0p / 1883.5p
Stock market listingLN
Forecast net cash (£m)74.9
Forecast gearing ratio (%)N/A
TeamFinancials
SectorFinancials

Price performance

%1m3m12m
Actual(0.8)(0.9)(19.1)
Relative *0.40.5(24.1)

* % Relative to local index

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Company news

S & U upbeat on car market as profits climb again

Tue, 26 Sep 2017 06:45:00 GMT

S & U's Advantage Finance in the driving seat

Fri, 10 Feb 2017 14:33:23 GMT

Dividend hunters should take a look at S&U plc (LSE:SUS) with a 4.55% yield

Thu, 31 Aug 2017 10:07:30 GMT

S&U Profit Jumps One-Fifth As Revenue Climbs On Higher Receivables

Tue, 26 Sep 2017 07:52:30 GMT

S & U plc looking to diversify with new bridging finance pilot

Thu, 29 Sep 2016 14:06:56 GMT

Investment summary

In its latest trading update (4 August) S&U reported that trading at Advantage motor finance continued at record levels with new loans up 20% year-on-year and monthly collections up 27%, reaching a record of £10m per month from close to 49,000 customers. Debt quality remains good and Advantage does not operate in the personal contract purchase (PCP) market, which has recently attracted media attention. Its low average loan size, at £6,200, should provide protection if changes in the PCP market affect car residual values. Aspen Bridging is developing its loan book cautiously but is reported to be finding good quality opportunities.

Last updated on 06/09/2017

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 15.0 N/A
2017A 60.5 27.1 25.2 169.1 11.7 N/A
2018E 75.2 33.2 30.1 199.1 10.0 N/A
2019E 89.8 40.0 35.4 234.2 8.5 N/A

Last updated on 30/08/2017

Latest research

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

Daily Comment

Institutional Comment | Financials | 24/09/2014

Latest video

Executive Interview – S&U

Industry outlook

Although the overall motor finance market may be showing signs of reduced demand, there are indications that competitive pressures in the non-prime areas may be easing and S&U's well-tested underwriting processes should mean it is well placed in the event of any macroeconomic weakness. Bridging finance will potentially provide a measure of diversification if the pilot proves successful. The shares remain conservatively valued in the context of peers. S&U is due to issue H118 results on 26 September.

Last updated on 06/09/2017

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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