S & U Share Discussion Threads

[pugugly] 25/9/2018 08:12

With carnage all around very nice reassuring interims - Well done the Coombs.

[plasybryn] 25/9/2018 07:05

Interims look good. Nice increase in dividend.

[dendria] 11/8/2018 10:35

There is an interview with Anthony Coombs in the Aug 18 issue of Master Investor Magazine (free) - quite a good read. hxxps://masterinvestor.co.uk/magazine/

[topvest] 03/8/2018 11:56

A nice update.

[cwa1] 03/8/2018 07:23

TRADING UPDATE AND NOTICE OF RESULTS

S&U plc, the motor finance and property bridging specialist, today issues a trading update for the period from its AGM statement of the 18 May to the 31 July 2018. It will announce half year results for the period ended 31 July 2018 on the 25 September 2018.

Trading

Against a background of a strong UK labour market albeit in a slowing economy, Advantage Finance, our motor finance subsidiary, continues to trade well with profits again at record levels. Whilst the new car market may have slowed, recent Finance and Leasing Association data shows the used car finance market we serve has been growing by 12% year on year. This is reflected in the recent average of over 80,000 monthly finance applications received by Advantage Finance.

However, following recent rates of expansion, a prudent focus on quality has seen acceptance levels tighten to 25% of applications (H1 2017: 31%), of which completed transactions comprise 9% (H1 2017: 8%).

This selectivity is consistent with both Advantages' emphasis on customer affordability and with our long-term strategy of sustainable growth. Customer numbers now stand at a record 58,100, 18% up on last year, and net receivables have now reached GBP263.0 million, up 15% on last year (H1 2017: GBP228.6million).

On debt quality, although impairment continues to run at higher levels than last year, recent underwriting refinements have led to early indications of an improvement in both new customer quality and early repayment performance. Overall monthly collections in H1 2018 are 20% up on H1 2017 and are now approaching GBP12million per month.

Aspen Finance, our property bridging business, continues to build both its market reputation and profitability. It recently won New Product of the Year at the Bridging and Commercial industry awards. Debt quality, as reflected in its repayment performance, is good. Its loan book now exceeds GBP16million from GBP11million at year end.

Commenting on the Group's trading and outlook, Anthony Coombs, S&U chairman, said:

"Advantage Finance maintains its remarkably reliable record of continued profitable growth over the past nineteen years in a variety of macro-economic conditions. Improvement in product, customer service and in underwriting strengthens their ability to build on this in years to come.

Aspen Bridging, our new bridging lender, has made a promising debut and is now profitable.

Both businesses give me every confidence that S&U will continue to deliver consistent improvements in shareholder value."

[jeffian] 02/7/2018 11:01

Behaving a bit like Snakes & Ladders at the moment! I suspect it's a feature of the illiquidity of the stock.

[plasybryn] 29/6/2018 12:24

Nice reversal today. Well done those who took advantage of the bargain price.

[plasybryn] 21/6/2018 13:12

Don't think I would get anywhere writing to them. They would just say become a member.

[jeffian] 21/6/2018 11:40

But it was a Sharesoc meeting. I doubt the company have much to say about it.

[plasybryn] 21/6/2018 11:24

To Anthony Coombes - the Co.

[jeffian] 21/6/2018 11:05

"the Co" or Sharesoc?

[plasybryn] 21/6/2018 10:58

I've sent an email to the Co this morning.

[cwa1] 21/6/2018 08:33

LOL, I AM a member and can't find the blasted thing!! Gone to seminar reports and presentations and can't see it, searched there and couldn't find it either. Anyone able to link directly to it? Cheers.

[plasybryn] 21/6/2018 08:26

On steroids this morning!

[plasybryn] 20/6/2018 18:21

But you have to be a member to access! Doh

[sharesoc] 20/6/2018 11:28

S&U’s presentation from our recent London seminar is available here:

[sharesoc] 09/6/2018 15:01

S&U present at our London seminar on Wednesday which may be of interest to shareholders or potential investors, limited places available:

[sharesoc] 30/5/2018 13:16

S&U present at our London seminar on the 13th June which may be of interest to shareholders or potential investors, limited places available:

[sharesoc] 24/5/2018 13:55

S&U present at our London seminar on the 13th June which may be of interest to shareholders or potential investors, limited places available:

[topvest] 18/5/2018 18:52

Sounded ok to me.

[pugugly] 18/5/2018 07:53

A bit more cautious than usual and a couple of yellow flags (imo) but no red flags that I could see - Probably content to hold but watch more closely.

[cwa1] 18/5/2018 07:49

S&U plc ("S&U" or "the Group")

AGM Statement and Trading Update

S&U, the motor finance and bridging lender, issues a trading update for the period 1 February 2018 to 17 May 2018, prior to its AGM being held today.

Trading at Advantage Finance, S&U's motor finance business, remains strong following previous record expansion of both customers and receivables. We continue to focus on debt quality which will underpin the consistency and sustainability of anticipated future profits. New loan transactions during the period were at similar levels to last year's record performance.

Loan applications have reached record levels of over 80,000 per month, of which c.25% are accepted and c.10% of acceptances are transacted. The successful introduction of Advantage's paperless Dealflo system has been well received by customers, improves service and allows a greater focus on quality whilst maintaining comparable volumes year-on-year. Advantage's net receivables book has grown to GBP258m, which comprises over 56,000 customers, an increase of 21% on last year.

Although rolling 12 months impairment to revenue has increased slightly to 25.8% versus 24.6% at year-end, this is still comfortably within the average for the previous ten years of 26.4%. New customer quality and early repayment performance continues to improve and we anticipate this will lead to a reduction in impairment to revenue in due course. April's monthly collections increased by 22% to GBP11.4m compared to the same month last year.

Our bridging finance pilot, Aspen Bridging, continues to confirm our confidence in its launch. Aspen's net receivables book has increased to GBP14m from GBP11m at year-end, with early repayments on track. Aspen's current profitability and growing reputation amongst its broker partners bodes well for a successful future. We look forward to updating the market with a full report on future plans for Aspen in H2 2018.

Demand for the Group's products and the quality of our businesses is reflected in a further GBP8.5m investment in the first quarter, taking Group borrowing to GBP113.5m. An additional GBP20m of banking facilities arranged in the period brought total committed facilities to GBP135m and provides headroom for further expansion.

Commenting on S&U's trading and outlook, Anthony Coombs, S&U Chairman, said:

"Despite a slowing UK economy, the value used car and residential markets in which we operate remain strong and resilient. Our continuing focus on customer selection and excellent service gives us great confidence for sustainable future growth."

[saint or sinner?] 16/5/2018 16:56

Meteoric rise over the last few months and no comments. These are the gem types of companies to be invested in. No rampers, derampers, or general BS merchants this BB is awash with.

[jeffian] 27/3/2018 13:01

I've been 'here' since the beginning and there was a time when I nearly dumped the shares - home collections had plateaued for years, dividend cover was getting very tight and it looked to be going nowhere. The move into the Advantage car finance business re-ignited growth and the sale of the home collection business - which was a worry as at that time it was the major part - looks to be a stroke of genius in terms of timing and what happened politically afterwards (cf. Provident Finance!). I see the presence of a significant family holding and management involvement as a positive thing truly aligning the interests of management and shareholders - they're unlikely to risk the whole ship and have shown an admirable intent to maintain and grow the dividend if at all possible. They say that when the ravens leave the Tower of London, we should all worry. Well never mind that, as long as the Coombs are at S&U it's OK by me!

[jeffian] 27/3/2018 12:43

Well they've managed their way through a few recessions since 1938 and I fully expect them to manage their way through the next one!