S & U PLC AGM Statement and Trading Update (1840Z)
20 Mayo 2021 - 1:00AM
UK Regulatory
TIDMSUS
RNS Number : 1840Z
S & U PLC
20 May 2021
20(th) May 2021
S&U plc
("S&U" or "the Group")
AGM Statement and Trading Update
S&U PLC, the leading specialist motor finance and property
bridging lender, issues a trading statement for the period 1st
February 2021 to the 19th May 2021 prior to its AGM today. As last
year, Covid restrictions dictate a closed AGM but S&U will be
holding a question and answer session for registered shareholders
at 11:30 am today, the 20th of May. Details on how to access the
conference are in note 9 of the AGM notice.
As outlined in our Chairman's statement accompanying the
full-year results published in March, the Group has weathered the
Covid pandemic and its consequences quite superbly. All S&U
staff are well and looking forward to the new "normality". For
Advantage Finance ("Advantage") this means that currently 60 staff
are back at our Grimsby offices with 120 expected to return at the
end of June. Aspen Bridging ("Aspen") also expects to return to its
Solihull offices by the end of June.
All staff, however, are being given the option of flexible
continued homeworking, to which they have adapted so successfully
over the past year.
As a result of their sterling efforts, the Group continues its
strong recovery as both motor and housing markets revive and as,
more generally, the UK is poised for 7% GDP growth this year.
Profitability for the period in our Advantage motor finance
business and in Aspen, our property bridging arm, was ahead of
group projections. Loan advances and collections rates in the
period were ahead of the same period last year, whilst Group net
receivables are now around GBP295 million.
Advantage Finance
Advantage Finance has produced an excellent first quarter, ahead
of expectations, and continues to invest in operational
improvements which will strengthen its market position, risk
profile and efficiency.
Although the bounce in loan advances anticipated following the
reopening of motor dealerships in April was less than expected,
year on year advances growth continues to accelerate and new
business quality has continued at a very good level. Advantage
continues to develop its offering across the non-prime motor
spectrum, which is reflected in the quality of new customers it is
attracting. As well as developing closer links with its loyal
introducer partners, Advantage is making good progress in its own
digital marketing and in providing loans for the nascent electric
vehicle market. Indeed, Advantage is supporting the Finance and
Leasing Association in its work to try to create a Green Finance
Guarantee with HM Treasury.
Monthly collection rates are cumulatively above budget and an
excellent GBP12.6 million of monthly collections were reached in
April. Covid-related FCA "payment holidays" have now fallen to just
1,200 customers from the cumulative 21,527 customers originally
taking such deferrals. Customers unaffected by "payment holidays"
maintain their usual excellence, and even those returning from
"payment holidays" have now returned to levels at 85.4% of due, as
the labour market strengthens and consumer confidence revives.
Hence, the trends currently observed at Advantage make us
optimistic that profit recovery and advances growth will meet our
expectations this year. We are laying the foundations for a return
towards Advantage's historic levels of profitability.
Aspen Bridging
Fuelled by a rising and buoyant residential property market in
which price levels currently stand 7% ahead of 2020, Aspen, is set
for a record year. Early transaction numbers have been boosted by
Aspen's authorisation for the Government guaranteed CBILS scheme,
so that current net receivables have reached over GBP50 million.
Whilst the past quarter has also seen an increase in average gross
loan size to GBP1 million per deal, book quality is at its best
ever level. Thus, the first quarter saw repayment collections at
GBP11.5 million - or nearly three times the figure last year.
Profitability in the first quarter reflects this and April saw a
record surplus for the business. Costs remain close to budget
despite systems investment and new recruitment, reflecting the
increase in business. Meanwhile underwriting processes and
standards continue to be refined, valuations remain conservative,
and overall maximum gross LTVs have reduced to just 59%.
Treasury
Both our very encouraging business prospects and our
traditionally conservative Treasury policy have resulted in further
strengthening of S&U's Treasury position during the first
quarter. The latter is reflected in Group gearing of just 60%, and
current medium-term facilities standing at GBP155 million against
borrowings of GBP111 million. In my statement for S&U's
full-year results, I said that "our growth prospects and strategy
will require additional funding"; I am therefore pleased to report
an additional GBP25 million of funding arranged during the period.
This takes Group facilities to GBP180 million, which provides
appropriate scope for the Group's future growth.
Commenting on S&U's trading outlook, Anthony Coombs, S&U
chairman, said:
"The financial year has started very well for S&U - a
recovery which, as the British economy resumes growth, we expect to
continue. With our habitual determination, imagination and
commitment we remain very confident as to the Group's prospects for
this year."
Enquiries S&U plc c/o SEC Newgate
Anthony Coombs
Financial Public Relations
Bob Huxford, Tom Carnegie, Megan
Kovach SEC Newgate 020 7653 9848
--------------- ----------------
Broker
Adrian Trimmings, Andrew Buchanan,
Rishi Shah Peel Hunt LLP 020 7418 8900
--------------- ----------------
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTUKSORAWUVAAR
(END) Dow Jones Newswires
May 20, 2021 02:00 ET (06:00 GMT)
S & U (LSE:SUS)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
S & U (LSE:SUS)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024