S&U (LON:SUS) Announces Earnings Results

S&U (LON:SUS) issued its earnings results on Tuesday. The company reported GBX 96.80 EPS for the quarter, Digital Look Earnings reports. S&U had a net margin of 21.13% and a return on equity of 9.55%.

Here are the key takeaways from S&U’s conference call:

• Underlying profit growth: Group profit before tax rose 7% year over year on an adjusted basis, excluding last year’s exceptional Aspen recovery. The interim dividend increased to 36p per share from 35p, with management anticipating further dividend growth.
• Strong lending and funding expansion: Net receivables exceeded £541 million, while new three-year private warehouse facilities are expected to increase funding capacity from roughly £337 million to £650 million and potentially reduce financing costs. Completion and drawdown are anticipated in October, subject to finalization.
• Advantage reported improving credit performance: Repayments rose to 92% of amounts due from 90%, impairment remained broadly stable despite receivables growth, and the proportion of accounts six or more months in arrears declined. Management is targeting a doubling of Advantage’s market share over five years, supported by new origination channels, technology and AI investments.
• Higher leverage and mixed market conditions remain risks: Net borrowings increased to £285.1 million and group gearing rose from 97% to 114% as the company funded growth. Aspen faces a subdued UK property market and slower repayments, while its longer-term products create a later profit profile; management also acknowledged that greater securitization-driven gearing will increase financial risk.

S&U Stock Up 1.6%

LON SUS traded up GBX 30 during trading hours on Friday, reaching GBX 1,910. 2,197 shares of the company’s stock were exchanged, compared to its average volume of 7,513. The company’s 50-day moving average is GBX 1,967.18 and its two-hundred day moving average is GBX 1,956.82. S&U has a one year low of GBX 1,620 and a one year high of GBX 2,458.50. The company has a debt-to-equity ratio of 113.78, a quick ratio of 58.00 and a current ratio of 56.94. The company has a market capitalization of £232.08 million, a price-to-earnings ratio of 9.78 and a beta of 0.56.

Analyst Ratings Changes

Separately, Berenberg Bank reissued a “buy” rating and issued a GBX 2,310 price target on shares of S&U in a report on Tuesday. Two analysts have rated the stock with a Buy rating, According to MarketBeat.com, the company has an average rating of “Buy” and a consensus price target of GBX 2,155.

Insider Activity at S&U

In related news, insider Anthony M. V. Coombs sold 3,300 shares of the business’s stock in a transaction on Thursday, July 9th. The shares were sold at an average price of GBX 1,940, for a total value of £64,020. 62.01% of the stock is currently owned by insiders.

About S&U

S&U plc provides motor, property bridging, and specialist finance in the United Kingdom. The company was incorporated in 1938 and is headquartered in Solihull, the United Kingdom.