S & U Share Discussion Threads

[alfwilson] 15/4/2002 16:47

JRD

Since we share an interest in SUS ... would you like to recommend any other winners waiting to be discovered ... all mine are like SUS and have now been discovered.

[peladon] 15/4/2002 11:11

SCSW reiterates "buy" at the weekend.

[andysand] 15/4/2002 11:07

Looks like the overdue re-rating is happening. Selling out of cattles and into S&U maybe? Price still way below fair value of 15*52=780p in my view.

Andy

[alfwilson] 15/4/2002 11:04

Freddie

It would seem CR owes you an apology?

[arthur daley] 15/4/2002 00:32

What if interest rates start to rise?

[sranmal] 14/4/2002 22:48

well, i commented on the top-most SUS thread at the time that SCSW obviously didn't add SUS to their portfolio and didn't comment on the results because it was too late to go into this month's issue. after my comment, everyone seems to have used the other SUS threads. go figure.

carry on being "gobsmacked" guys.

[ydderf] 14/4/2002 11:13

it may be quite some time before the lazy, overpaid, 'clever' fund managers of smaller company funds hear about this one on the golf course from their caddies, but it will happen sure enough, then we will hear about 'experts' buying, and star fund managers building 'secret' stakes (was there ever such a pile of tosh as to be found in the IC Shrew Investor column!) - you are the kings my fellow inevestors in S&U, just remember to make the johny-come-latelies pay high and dear for your stock and only dribble it out into their stupid other-peoples-money maws.........i.e between £7 and £8 this year, and £10 next!

[sranmal] 14/4/2002 10:38

drago, SCSW didn't comment on the results because they must have been too late to be included in this month's issue.

Agree with you andy re the updated broker forecasts. From the finals:-

"The board continues to work with the company's broker, Brewin Dolphin, to improve recognition of value."

[andysand] 13/4/2002 22:51

There will be another kick up when updated forcasts are released. It's only then that the market can value the shares. my guess would be eps of 61p give a target of £6 at worst. As I've said before, this assumes no re-rating. To have growth AND a good yield at the same time has got to be worth a better p/e than 10!

Andy

[drago] 13/4/2002 22:37

well the results are out and scsw didn't add them to their portfolio and didn't write them up as one of their main tips.
investors in quality growth stocks would be buyers but i can see the share price tippling back over the months unless there is further good news.
it's on my buy list.

[andysand] 12/4/2002 00:53

Director goes on a little spree of 3000 at 535p:

RNS Number:3765U
S & U PLC
11 April 2002

DEALINGS BY DIRECTORS


1) NAME OF COMPANY

S & U PLC

2) NAME OF DIRECTOR

K.R. SMITH

3) Please state whether notification indicates that it is in respect of
holding of the shareholder named in 2 above or in respect of a
non-beneficial interest or in the case of an individual holder
if it is a holding of that person's spouse or children under the
age of 18 or in respect of an non-beneficial interest

2 ABOVE

4) Name of the registered holder(s) and, if more than one holder, the
number of shares held by each of them. (If notified)

K.R. SMITH

5) Please state whether notification relates to a person(s) connected
with the Director named in 2 above and identify the connected person(s)



6) Please state the nature of the transaction. For PEP transactions
please indicate whether general/single co PEP and if discretionary/non
discretionary

PURCHASE

7) Number of shares/amount of
stock acquired

3.000

8) (0.025%)
of issued Class



9) Number of shares/amount
of stock disposed



10) ( N/A %)
of issued Class



11) Class of security

ORDINARY

12) Price per share

530p

13) Date of transaction

11.04.02

Andy

[andysand] 12/4/2002 00:28

Well, my forcasts were out. Nevertheless, the results and forward looking statement were exellent and the increase in dividend very welcome! This one HAS to be a core stock so I will not be selling and will continue to hold for another year assuming the market doesn't over value the company. My new price target on the basis of the results is 930p. This target is based on a forward p/e of 15 which i think would better reflect the prospects of this company.

Good luck all!

Andy

[andysand] 12/4/2002 00:28

Well, my forcasts were out. Nevertheless, the results and forward looking statement were exellent and the increase in dividend very welcome! This one HAS to be a core stock so I will not be selling and will continue to hold for another year assuming the market doesn't over value the company. My new price target on the basis of the results is 930p. This target is based on a forward p/e of 15 which i think would better reflect the prospects of this company.

Good luck all!

Andy

[alfwilson] 11/4/2002 17:25

TO ALL

I LIKE GOOD SURPRISES ... HENCE THE CONSERVATIVE APPROACH. THIS APPROACH HAS HELP REALISE A 20%+ PA RETURN OVER THE LAST 3 (INCLUDING 2 DIFFICULT) YEARS. GZR's £7 SOUNDS GREAT ... MY TARGET IS A MORE MODEST 620p + PLUS THOSE LOVERLY DIVIDENDS.

ALF

[gzr] 11/4/2002 15:24

alfwilson - your forecast sounds fair and hopefully too low, especially if Advantage Finance takes off. They have purposely held this new subsidiary back in the short term, so this could add to forecasts on its own in due course.
The shares are soaring and breaking out yet again on the chart. I think £7 plus
would be a fair price in the short term but who knows in this fickle market.

[andysand] 11/4/2002 14:40

Alf, your eps target assumes growth at under 20% so I think you won't be dissapointed. It will be interesting to see what the 'analysts' come up with.

Andy

[alfwilson] 11/4/2002 14:27

GZR

Until I know better I will assume conservative eps of 61.6p for next year?

[kaffee] 11/4/2002 10:14

Like I said... if Buffet is all you aspire to in a Bear market, you really ought to up your targets mates.

Did you forget to mention about selling Hornby at 2.70 or so ?? Real genius !!

And Madisons wasn't too hot was it ??

:-)

[ydderf] 11/4/2002 09:35

S&U, TRN, AVON, API, MOLINS, etc etc - mirror, mirror on the wall who is the undisputed (but unsung) heroic stockpicking genius of them all?

[gzr] 11/4/2002 08:17

Excellent figures. Eps of 53.5p, well above forecast of 49.5p. This years forecast of 57p is surely way too low.

[peladon] 11/4/2002 08:06

S & U PLC
11 April 2002



S&U PLC - Providers of Consumer Credit and Motor Finance

PRE-TAX PROFITS UP 21% AT £9.2M (£7.6M) ON TOTAL BUSINESS TRANSACTED
£89.9M (£86.5M)

TOTAL DIVIDEND UP 14.9% AT 27p (PREVIOUS YEAR'S INCREASE 11.9%)

TARGET FOR CURRENT YEAR TO REPLICATE IN THE NORTH THE GROWTH OF HOME
COLLECTED CREDIT BUSINESS ACHIEVED IN THE SOUTH

MORE SIGNIFICANT GROWTH PATTERN AND NEW RECORDS EXPECTED THIS YEAR IN
ADVANTAGE FINANCE LTD

'DEMAND FOR CREDIT FROM BOTH EXISTING AND NEW CUSTOMERS REMAINS STRONG'

CURRENT YEAR VIEWED WITH CONFIDENCE.....'THE FORTUNES OF THIS GROUP
WILL GO FROM STRENGTH TO STRENGTH'


CHAIRMAN'S STATEMENT

Results

The operating profit for the year has increased to £10.4m from £8.4m
for the previous year. Pre-tax trading profits for the year are £9.2m
as against £7.6m, an increase of 21%. Earnings per share rose from
43.9p to 53.5p. Business transacted at £89.9m compares favourably with
£86.5m for the comparable period. Credit charges and commissions'
turnover is £34.4m, up from £31.9m.

The Board is recommending a final dividend of 20p per ordinary share,
making 27p per share for the year, compared to 23.5p last year, an
increase for the year as a whole of 14.9% (last year was 11.9%). On
this basis, at the average market price for January 2002 of 416.0p, the
yield would be 6.5% with an improved cover of 2 times. Shareholders
have enjoyed dividend growth in every year since before the company's
50th anniversary in 1988.

Home Collected Credit

The main growth in business and in profits came from the southern half
of Britain, but all areas contributed to the improvement in both sales
and profits in the year. Margins were improved through product mix and
debt quality. There is no good reason why the growth in the south
should not be replicated in the north. This will be a target for this
coming year.

Motor Car Finance - Advantage Finance Limited

This business is soon to be three years old, so has not yet reached the
contract maturity point when the bulk of first month contracts come to
the end of their term. It set off in life at a cracking pace with an
excellent team. This year we have purposely slowed the growth
somewhat. The results were up on the previous year despite a hard
marketplace. This current financial year should see a more significant
profit growth pattern with no further capital injections. We are
determined that the quality of debt criteria should be totally
maintained.

The Board

On the 14th of February 2002, Bob Fisher, our Finance Director retired.
Mr Fisher, 64, joined S&U in 1974. He has always been a wise counsel
in our deliberations. We are sorry to see him step down, but wish him
very well for his retirement. Fortunately for us he had a gift for
picking good recruits and we have excellent continuity in the finance
function. Pending the appointment to the board of a new Finance
Director, David Maiden, our Company Secretary, who has worked since
1974 with Bob on the financial side of the business, is to be the
group's Chief Financial Officer, in addition to his current position.
We are already blessed with two chartered accountants still on the
board in addition to those in our management team.

In addition, my son, Fiann Coombs has become a non-executive director
of the company. Mr Coombs, 32, is an economic analyst and has recently
contributed a six-months' review of the company's operations which
provided the background to his appointment. He will of course resign
and offer himself for election at the Annual General Meeting.

Staff

Every company is only as good as the quality and dedication of its
staff. We are fortunately well blessed. We have a loyal and dedicated
team and on your behalf I would like to take this opportunity to thank
them most warmly for their contribution.

Looking Forward

Last year I said that I hoped to see a further convergence of S&U's
price earnings ratio and that of the sector generally in the year
ahead. There has been some movement in that direction, but by no means
enough to recognise the value of the shares. The board continues to
work with the company's broker, Brewin Dolphin, to improve recognition
of value.

The Group's balance sheet is in good form. We have all the funds we
require to make the growth we plan. Funds are made available through
our profits growth and our bankers, with whom we work to ensure that
they understand our business. We work in a business that we know well
and understand clearly with good management and committed staff. We
plan to continue the successful expansion in the market for Home
Collected Credit. Demand for credit from both existing and new
customers remains strong, as they continue to value the convenient,
quick and straightforward service in their homes.

The provision of motorcar hire purchase by Advantage through carefully
targeted underwriting will continue to provide a growing opportunity
for expansion and profit. The Board is confident that the company will
achieve new records in this new financial year.

I have remarked before that the business has defensive qualities when
the global economic scene is uncertain. Over the past year the global
scene has continued uncertain and worse, but your company has had a
year that has surpassed our budgets. The British public has continued
to go shopping. We look forward to this current year with hopeful
confidence that the economy will improve and with it the fortunes of
this group will go from strength to strength.


Enquiries: Derek Coombs Anthony Coombs
Chairman Managing Director
S&U PLC S&U PLC
Tel: [phone] Tel: [phone]

Simon Preston
Financial Public Relations Limited
Tel: [phone]



CONSOLIDATED PROFIT AND LOSS ACCOUNT
Year ended 31 January 2002

2002 2001
As restated
£000 £000

BUSINESS TRANSACTED 89,929 86,482
====== ======
TURNOVER 34,430 31,892

Cost of sales (3,653) (3,962)
------ ------
Gross profit 30,777 27,930

Administrative expenses (16,080) (14,989)

Provision for doubtful debt (4,300) (4,492)
------ ------
OPERATING PROFIT 10,397 8,449

Profit on sale of fixed assets - 113

Net interest payable (1,191) (942)
------ ------
PROFIT ON ORDINARY ACTIVITIES
BEFORE TAXATION 9,206 7,620

Tax on profit on ordinary
activities (2,775) (2,319)
------ ------
PROFIT ON ORDINARY ACTIVITIES
AFTER TAXATION BEING PROFIT FOR
THE FINANCIAL YEAR 6,431 5,301

Dividends paid and proposed
including amounts in respect of
non equity shares (3,323) (2,912)
------ ------
RETAINED PROFIT FOR THE
FINANCIAL YEAR 3,108 2,389
====== ======
Basic Earnings per Ordinary
share 53.5p 43.9p
====== ======
Dividends per Ordinary share 27.0p 23.5p
====== ======

The consolidated profit and loss account for the year ended 31 January 2001
has been restated for the adoption of FRS 19 (see note 3).

There have been no recognised gains or losses other than the profit for the
current and preceding years.

All activities derive from continuing operations.



SUMMARY CONSOLIDATED BALANCE SHEET
31 January 2002
2002 2001
£000 As restated
£000
FIXED ASSETS

Tangible assets 2,768 2,873
------ ------
CURRENT ASSETS

Amounts receivable from customers
(including £12,578,000 falling due
after one year (2001: £9,737,000)) 59,292 49,574

Other current assets 1,232 1,592
------ ------
60,524 51,166

CREDITORS: amounts falling due
within one year (14,942) (13,797)
------ ------
NET CURRENT ASSETS 45,582 37,369

CREDITORS: amounts falling due
after more than one year (15,000) (10,000)
------ ------
TOTAL NET ASSETS 33,350 30,242
====== ======
CAPITAL AND RESERVES 33,350 30,242
====== ======




Statistics 31-Jan-02 31-Jan-01


Operating Profit/Business Transacted 11.6% 9.8%

Profit Before Taxation/Net Assets 27.6% 25.2%

Net Borrowing/Shareholders Funds 69.5% 58.9%



CONSOLIDATED CASH FLOW STATEMENT
Year ended 31 January 2002

2002 2001
£000 £000 £000 £000

Cash flow from operating
activities 1,750 (1,633)

Returns on investments and
servicing of finance

Interest received 12 4

Interest paid (1,116) (902)

Preference dividends paid (78) (230)
------ ------
Net cash outflow from returns
on investments and servicing of
finance (1,182) (1,128)

Taxation (2,430) (2,054)

Capital expenditure and
financial investment

Purchase of tangible fixed
assets (708) (692)

Proceeds of sale of fixed
assets 74 226
------ ------
Net cash outflow for capital
expenditure and financial
investment (634) (466)

Equity dividends paid (2,876) (2,583)
------ ------
Cash outflow before financing (5,372) (7,864)

Financing

Increase in loans from banks 5,000 10,000
------ ------
(Decrease)/increase in cash in
the year (372) 2,136
====== ======


NOTES TO THE PRELIMINARY ANNOUNCEMENT
Year ended 31 January 2002

1. This summary of results are not statutory accounts within the
meaning of section 240 of the Companies Act 1985. The
statutory accounts for the year ended 31 January 2002 on
which the auditors have given an unqualified report and did
not contain an adverse statement under section 237(2) or
237(3) of the Companies Act 1985 will be delivered to the
Registrar of Companies after the Annual General Meeting.

2. A final dividend of 20.0p per Ordinary Share is proposed, payable
on 2 July 2002, with a record date of 7 June 2002.

3. The financial information within this report has been prepared
in accordance with applicable accounting standards. Since
the preparation of the previous year's financial statements,
the group has adopted the recommendations set out in
Financial Reporting Standard ('FRS') 17, FRS 18 and FRS 19.
The transitional requirements of FRS 17 have been adopted in
the current period. There is no effect on the current and
prior periods as a result of adopting FRS 18.

The adoption of FRS 19 Deferred Taxation' has required
changes in the method of accounting for deferred tax assets
and liabilities. As a result of these changes in accounting
policy the comparatives have been restated as follows:

Profit
Deferred and loss
tax account Shareholders'
asset reserve funds
£000 £000 £000
The Group

2001 as previously reported - 25,233 30,106
Adoption of FRS 19 at
1 February 2000 50 50 50
During the year ended
31 January 2001 86 86 86
---- ------ ------
Adoption of FRS 19 at
31 January 2001 136 136 136
---- ------ ------
2001 restated 136 25,369 30,242
==== ====== ======

4. The number of shares used in the calculation of earnings per
share is the average number of shares in issue during the
year of 11,737,228 (2001: 11,737,228). There are no
dilutive shares.

5. The figures shown for the year ended 31 January 2001 are not
statutory accounts. A copy of the statutory accounts has
been delivered to the Registrar of Companies, contained an
unqualified audit report and did not contain an adverse
statement under section 237 (2) or 237 (3) of the Companies
Act 1985.

6. The 2002 Annual Report and Financial Statements will be posted
to shareholders in due course. Copies of this announcement
are available from the Company Secretary, S&U plc, Royal
House, Prince's Gate, Homer Road, Solihull, West Midlands,
B91 3QQ.


This information is provided by RNS
The company news service from the London Stock Exchange

[andysand] 08/4/2002 22:14

There has to be a little profit taking after the recent run up. It's human nature and of no importance. The shares have a solid yield and earnings to back it up. Nothing to worry about. Have another look in 6 months!

Andy

[andysand] 08/4/2002 22:13

I think I would agree with your targets IF the shares aren't re-rated as they should be!

Andy

[kaffee] 08/4/2002 21:55

Looks like you'll be able to get SUS under a fiver after all if this little slide continues

Best of luck

Kaffee