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. At end FY18 it over 54,000 customers.

Stock data

Market cap.£295.2m
Last close2,460.00p
High / Low (52 weeks)2525.0p / 1883.5p
Stock market listingLN
Forecast net debt (£m)145
Forecast gearing ratio (%)86

Price performance

Relative *0.710.717.3

* % Relative to local index

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Company news

S & U's motor finance arm continues to thrive despite slowdown in car sales

Wed, 07 Feb 2018 15:32:28 GMT

Demand for S & U's products remains 'very robust'

Thu, 07 Dec 2017 10:05:58 GMT

S&U says used car market strong as profits hit new record

Tue, 27 Mar 2018 09:30:15 GMT

New car wobble should help Advantage car loan business, says S&U's Coombs

Wed, 28 Mar 2018 12:55:58 GMT

S&U plc (LON:SUS) Is A Real Dividend Rock Star – Here Is Why

Thu, 01 Mar 2018 10:52:30 GMT

Investment summary

S&U’s core non-prime motor finance business, Advantage, has delivered 18 consecutive years of profit growth, including a 20% increase in FY18. A mix change towards higher-risk customers meant a higher rate of impairment but the risk-adjusted return on receivables only declined slightly and, looking ahead, should be at least stable following a tightening of criteria. Meanwhile, the scope for profitable receivables growth seems good given a market share of c 1% and, separately, the property bridging pilot could provide an interesting diversifying source of growth.

Last updated on 12/04/2018

Y/E Jan Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2017A 60.5 27.1 25.2 169.1 14.5 N/A
2018A 79.8 33.3 30.2 202.4 12.2 N/A
2019E 98.1 41.6 36.2 243.3 10.1 N/A
2020E 113.6 50.0 42.9 288.2 8.5 N/A

Last updated on 12/04/2018

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 06/04/2018

Key management

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

Company address

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