S&U (LON:SUS) Posts Quarterly Earnings Results

S&U (LON:SUS) announced its quarterly earnings results on Tuesday. The company reported GBX 96.80 earnings per share (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 Trading Down 0.8%

Shares of LON:SUS traded down GBX 15 during midday trading on Thursday, reaching GBX 1,880. 3,716 shares of the company’s stock were exchanged, compared to its average volume of 7,540. The stock has a market cap of £228.44 million, a price-to-earnings ratio of 9.63 and a beta of 0.56. S&U has a fifty-two week low of GBX 1,620 and a fifty-two week high of GBX 2,458.50. The firm’s 50 day simple moving average is GBX 1,967.88 and its two-hundred day simple moving average is GBX 1,957.15. The company has a debt-to-equity ratio of 113.78, a current ratio of 56.94 and a quick ratio of 58.00.

Insider Buying and Selling

In other S&U news, insider Anthony M. V. Coombs sold 3,300 shares of the company’s stock in a transaction dated 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 owned by insiders.

Wall Street Analysts Forecast Growth

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

S&U Company Profile

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.