Search Follow us


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 had over 54,000 customers.

Stock data

Market cap.£306.1m
Last close2,550.00p
High / Low (52 weeks)2790.0p / 1883.5p
Stock market listingLN
Forecast net debt (£m)145
Forecast gearing ratio (%)86

Price performance

Relative *(4.8)(0.2)23.2

* % Relative to local index

Other companies in sector Show

3i Group Abbey Protection
Aberdeen Asset Management Admiral Group
AFH Financial Group Ai Claims Solutions
Allied Minds Alpha Strategic
Amlin APQ Global
Arbuthnot Banking Group Arden Partners
Ashford Ashford Hospitality Trust
Ashmore Group Atlantis Japan Growth Fund
Attica Bank Aviva
Banca IFIS Banca Sistema
BB Healthcare Trust Beazley
BlackRock Emerging Europe Braemar Hotels & Resorts
Brewin Dolphin Brightside Group
Catlin Group Cenkos Securities
ChimpChange Circle Holdings
City of London Group Collins Stewart
Corestate Capital Holding Covercy
Curtis Banks DeA Capital
Deutsche Börse Deutsche Grundstücksauktionen
DF Deutsche Forfait Empiric Student Property
Ernst Russ Experian
Fairpoint Group FBD Holdings
Ferratum Oyj FinLab
Gable Holdings Gartmore Group
GCP Student Living German Startups Group
GLI Finance Grand City Properties
Hardy Underwriting Hargreaves Lansdown
Heartland New Zealand Helphire
Henderson Group Hiscox
HSBC Holdings ICAP
ICG-Longbow Senior Secured UK Property Debt Investments Ltd IE Financial
IFG Group IG Group
Impax Asset Management International Personal Finance
Is Yatirim Menkul Degerler JDC Group
John Laing Group Jupiter Fund Management
Lancashire Holdings Lighthouse Group
Liontrust Asset Management Lloyd Fonds
London Stock Exchange Group MAN Group
Market Tech Holdings Mattioli Woods
MCB Finance Group mic MPC Capital
MyBucks NEOVIA Financial
Noratis Novae Group
Numis Corporation Nurnberger Beteiligungs
Oakley Capital Investments Ocean Capital
Oekoworld Omega Insurance Holdings
OTC Markets Group Panmure Gordon
Park Group Picton Property Income
Powerhouse Ventures Prudential
publity Quayle Munro Holdings
Randall & Quilter Investment Holdings RCM Beteiligungs
Record Rensburg Sheppards
RSM Tenon Sanlam Securities UK
Scherzer & Co Schroders
Secure Trust Bank Share
Shore Capital Group St. James's Place
Supermarket Income REIT Syndicate Asset Management
Tawa The Dolphin Square Charitable Foundation
Town Centre Securities Tungsten Corporation
Umweltbank Volta Finance
Warsaw Stock Exchange WH Ireland
WorldSpreads Group

Company news

Investment summary

S&U’s AGM statement and trading update in May indicated that motor loan applications are running at record levels. Tighter credit criteria have meant a lower level of approvals (25% vs 29% previously) but receivables were nevertheless 21% ahead of the prior year level. Impairments have shown a further increase (from 24.6% of revenue at year end to 25.8%) but are expected to stabilise as tighter criteria progressively influence the loan book risk profile. The Aspen property bridging pilot has continued to make good progress, increasing its loan book from £11m at end January to £14m with a decision on continuation due this year.

Last updated on 29/06/2018

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 15.1 N/A
2018A 79.8 33.3 30.2 202.4 12.6 N/A
2019E 98.1 41.6 36.2 243.3 10.5 N/A
2020E 113.6 50.0 42.9 288.2 8.8 N/A

Last updated on 25/06/2018

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. The relatively low value of the motor loans it makes, typically used to purchase used cars for transport to work means it is serving a segment that is likely to be more stable than new car financing. Pressure on real wages has probably affected some borrowers but with unemployment subdued and higher credit scores for new loans the outlook for Advantage motor finance remains encouraging.

Last updated on 29/06/2018

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
View website