S & U Share Discussion Threads

[philjeans] 29/9/2009 16:48

Well that's the fiver crossed - on to six quid now.

And the divs keep rolling in........

[cwa1] 25/9/2009 14:11

It's not big but I'm hoping it IS clever:-

25 September 2009

S & U PLC ('S&U' or 'the Company')

Director/PDMR Shareholding

S & U were advised today that Mark Hepplewhite, Director, purchased 3,000 ordinary shares at 480p on 24 September 2009.

Following this Mark Hepplewhite is now beneficially interested in 20,000 ordinary shares representing 0.17 per cent of the total voting rights of the Company.

:-)

[muangsing] 24/9/2009 16:02

jeffian

I take your point and it will be my last post (as you say no point flogging this issue)

But I'm sure Cattles thought they were cherry picking the referrals from Barclays.
Maybe there is nothing to cherry pick from Cattles or London Scottish.

I haven't been through the comparatives but on the face of it H1 09 eps is greater than H2 08, so hopefully some operating profit growth there

Regards

[jeffian] 24/9/2009 15:54

Muangsing,

I understand that but was assuming they could cherry-pick the 'quality' business from the ashes of LS and Cattles. My point is that their operating profits are 10% below what they were in 2005 (i.e. long before the recent banking crisis and the decline has been steady year-on-year) to the extent that the divi we love is barely covered. If the trend continues, we'll see a divi cut next. A sub-10x PER and a near-7% yield only look 'cheap' if profits and divis are maintained! Anyway, I've flogged the point to death now so I'll shut up. Let's hope the trend of the Interims continues to the full year and beyond, whatever the cause!

Regards, Ian

[jeffian] 24/9/2009 15:26

This_is_me,

Sorry to bang on, but it has actually REDUCED operating profits. Net profits have only increased because lower interest rates have reduced finance costs but that will reverse out as soon as interest rates rise again. I don't want to make too much of it because it's a creditable performance in a difficult market but it's important to understand we haven't returned to underlying 'growth' yet and I rather hope management seize the opportunity offered by Cattles' misfortunes to genuinely grow the business.

Regards, Ian

[this_is_me] 24/9/2009 14:33

Nice breakout! The company has grown profits during the 'crunch' and gained market share.

[jeffian] 24/9/2009 11:07

Indeed, philjeans, "in this climate". But we've been "treading water" since 2005!

[philjeans] 24/9/2009 10:30

In this business, like all others, turnover is vanity etc; far better to make sure you're loan is repaid than to lend too freely.

Bloody easy to lend; getting it back is the trick.

I'm happy they're treading water in this climate whilst others are losing capital very quickly.

As I said - divi is safe and so is our stake.

[the big fella] 24/9/2009 10:11

Ian

Yes, I agree 100%. It does seem ridiculous I could buy these in size at well under £3, but as was said at the time good were marked down with bad.

[pugugly] 24/9/2009 08:34

Very nice. A well run business. Yield is nice - Even if no dividend increase still a yield of 7.1%. I can live on that.

[philjeans] 24/9/2009 08:28

Yep; div is safe and balance sheet stronger.

S/P will firm up again towards six quid.

[cwa1] 24/9/2009 07:56

Solid, steady, progress I reckon with a fairly bullish overtone to the announcement given their normally very reserved style

[the big fella] 24/9/2009 07:50

Nothing to worry about there.

[cwa1] 24/9/2009 07:39

Results out:-



Financial Highlights
§ Profit before taxation up 8% to £5.02m (2008: £4.65m)
– Home Credit profit before taxation up 3.8% to £3.3m (2008: £3.2m)
– Motor Finance profit before taxation up 16.1% to £1.7m (2008: £1.5m)
§ Earnings per share up 8% to 30.5p (2008: 28.3p)
§ Revenues of £22.1m (2008: £22.7m)
§ Record operating cash inflow of £6.3m (2008: £1.9m)
§ Interim dividend unchanged at 9p – increased cover
§ Group gearing reduced to 65% (2008: 75%) as net borrowing reduced by over £4m to £27.9m
§ Bank facilities remain in place providing substantial acquisition and development headroom

Operational Highlights
§ Stable collections and further improvement in debt quality in home credit
§ Increased customer numbers on last year in both home credit and motor finance
§ Strong demand for motor finance and tightened underwriting
§ Good potential in both home credit and motor finance

Current Trading and Outlook
§ Current trading remains encouraging, despite tighter market conditions
§ Strong balance sheet and cash generation bode well for when market conditions improve
§ Outlook promising



Anthony Coombs, Chairman of S&U Plc commented:

'These are good results which reflect the solidity and prudent management of our home credit and motor finance businesses. At a time of continuing market instability and despite our still slowing economy, we believe that S&U's record of sustainable earnings and dividend and an ever stronger balance sheet are a sound basis for the continued delivery of excellent shareholder value.'

[cwa1] 21/9/2009 11:46

Yes, I'm a fan too. Interims on Thursday which might explain the slight interest we are seeing today. Fingers firmly crossed for them!

[philjeans] 21/9/2009 11:23

Spread has tightened here a bit and we're on the cusp of a breakout.

Great ISA ble income stock and hasn't really been hurt by the recession due to careful vetting and experienced management.

A fantastic take over candidate one day when the Coombes family decide to pack it in.

I keep adding a little as the price continues to harden.

[philjeans] 14/8/2009 13:30

In view of all the positives attached to these shares, I see no reason why they can't regain the old £6 highs we saw here a year or two back.

Just buy in your ISA, sit back and watch the cash roll up.

[pugugly] 13/8/2009 14:11

taylor20:- I am not sure if the prfs are quoted - If not could be a purchase from a deceased estate - Just a thought - Nothing known.

[taylor20] 11/8/2009 09:53

Still pondering that odd transaction in the prefs.

Doubly odd that the preference shares are yielding less than the ordinaries (~ 7%).

Better to buy back the ordinary shares if they felt they were undervalued?

[cwa1] 11/8/2009 09:37

Can't see any reason for the divi not to be at least maintained given that trading statement.

Chunky yield, low earnings ratio, debt reducing and an upbeat TS.

Decided on a little top up but can't get more than 500 online so have had to leave it with broker to work.

Looks like a classic recovery situation with all the right signs in place.

Good luck to all.

[pugugly] 11/8/2009 09:09

I would settle for the current yield of 8.42% though am happy with my yield on cost of 9.46%, subject to last years dividend being maintained.

[this_is_me] 11/8/2009 08:44

LOL

Funny that I had this premonition yesterday that there would be a RNS today. Eat your heart out Mystic Meg!

The important thing is that my 11% yield (at buying price) is safe and that capital appreciation is likely over the medium term.

[cwa1] 11/8/2009 08:37

Obviously NO way that that leaked out yesterday. None.