S&U (LON:SUS) Issues Earnings Results

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

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 Price Performance

Shares of S&U stock traded up GBX 30 during trading on Friday, reaching GBX 1,910. The company’s stock had a trading volume of 2,197 shares, compared to its average volume of 7,513. The business has a 50 day moving average price of GBX 1,967.88 and a 200-day moving average price of GBX 1,957.15. S&U has a 12-month low of GBX 1,620 and a 12-month high of GBX 2,458.50. The company has a market capitalization of £232.08 million, a P/E ratio of 9.78 and a beta of 0.56. The company has a quick ratio of 58.00, a current ratio of 56.94 and a debt-to-equity ratio of 113.78.

Insider Buying and Selling

In other S&U news, insider Anthony M. V. Coombs sold 3,300 shares of the firm’s stock in a transaction on Thursday, July 9th. The stock was sold at an average price of GBX 1,940, for a total value of £64,020. Company insiders own 62.01% of the company’s stock.

Analyst Ratings Changes

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

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.