S&U grows lending book sharply while half-year profit holds steady

S&U ($SUS) reported £15.7 million of pretax profit for the half-year ended August 5, little changed from £15.6 million, despite revenue rising to £57.3 million from £51.8 million. Net receivables expanded to £541 million from £426.8 million. Net borrowings increased to £285.1 million, compared with £180 million a year earlier, reflecting the larger financing requirement as lending recovered.

Advantage motor finance increased pretax profit to £11.8 million from £10.8 million, with advances of £105 million versus £70.6 million. Aspen bridging finance earned £4 million, down from £5 million; the previous period included an unusually large recovery. The results show stronger origination without equivalent group profit growth. Funding availability, collection performance and credit losses remain important as the loan book expands, and higher borrowings should not be mistaken for stronger internally generated cash.

Sources:

• S&U RNS announcement via Investegate