S & U Share Discussion Threads

[doc60] 09/6/2020 11:51

Yes agree GX. Long term hold for me. Tempted to top up a bit but have concerns over how the overall economy will fair post covid.

[gabsterx] 09/6/2020 09:41

Solid update today by S&U, heavy impact on business as expected but solid balance sheet and conservative approach means the virus can huff and puff but it won't blow the brick house down. And if it does Aspen Bridging will be happy to finance the rebuilding! :D


hxxps://www.proactiveinvestors.co.uk/LON:SUS/S-&-U-PLC/rns/826564

[gabsterx] 13/5/2020 12:34

Coombs just added some shares today

[tudes100] 20/4/2020 02:09

hxxps://maynardpaton.com/2020/04/19/s-u-final-2020-dividend-and-no-furloughed-staff-underline-management-confidence-of-non-prime-customers-repaying-loans-totalling-302m/

[aleman] 17/4/2020 09:45

People struggling with payday loans, car finance and pawn shop borrowing will be granted a payment holiday under plans by the City watchdog.

[jeff h] 15/4/2020 12:48

Interview with Anthony Coombs at www.proactiveinvestors.co.uk

/companies/news/917180/s--u-plc-still-going-for--steady-sustainable-growth-and-consistent-dividend--917180.html

[gabsterx] 08/4/2020 15:09

Lol, well given the current situation I'd settle for a fist bump!

[jeffian] 08/4/2020 12:44

Be careful what you wish for. I once had a truly heroic soufflé in a French hotel and when the Maitre d'H came to clear the plate I said of the soufflé chef "I would like to shake that man's hand". The M d'H raised a quizzical eyebrow in that Gallic way and said -
"Ah don' seenk you would"!

[gabsterx] 08/4/2020 12:20

I may sound like a broken record but again I wish I could shake Mr Coombs' hand. While other companies are cutting the dividend left and right sometimes unnecessarily, citing 'prudence' (I'm looking to you DS Smith), S&U stayed the course and maintained the payout thanks to their disciplined approach to growth.

That being said they need to brace for an unusually high amount of defaults in the coming quarters, but they seem confident to have the wherewithal to weather the storm.

[aleman] 08/4/2020 07:16

The deterioration in credit quality in recent years seems to have stopped on these numbers so intriduction of tighter lending parameters a couple of years ago seems to have got things under control. Just the small matter of CV-19 to consider now. I've seen little to give any inkling on that yet, though a US survey of around 1000 small businesses saw 30% miss mortgage or rent and 20% only make a part payment. I can't find that link but I found this when looking for it, which suggests a similar level of stress:



So not really the same sector but an indication of the degree of financial dislocation out there.

[pugugly] 08/4/2020 06:58

As usual family silver in safe family hands

Looks well placed to survive the virus - Will certainly be the odd cough on the way but in the words of the Chairman will emerge stronger

Totasl Dividends also increased and final will be paid

"We have therefore concluded that despite current uncertainties, we should recommend a payment of a final dividend of 50p per ordinary share (2019: 51p) to shareholders on the register at the 19th June 2020. This means that total dividends this year will be 120p per share (2019: 118p) with this total dividend being again covered nearly exactly twice (2019: 1.98). As usual, final dividend will be subject to the approval of shareholders at our AGM, which will now be held by remote means on 9th June 2020.

Back to sleep to another year - provided (fingers crossed) still alive!!!

[jeffian] 30/3/2020 12:08

Because pcp makes assumptions about the residual value of the motor at the end of the lease period. You may end up with 'negative equity' (i.e. the secondhand value of the car is insufficient to pay off the outstanding loan).

[ssahoy18] 30/3/2020 10:59

why would hp be better thna pcp..?

[jeffian] 30/3/2020 09:25

Indeed, but the market is emotional and never seems to differentiate between different businesses if it thinks - rightly or wrongly - they are in the same sector so I fear a Pavlovian reaction to any adverse comment about car loans. You will note that SUS also reacts badly to any bad news about 'doorstep lending' even though it has disposed of that business entirely. Mr. Market is an irrational beast.

[gabsterx] 30/3/2020 08:35

Glad that S&U only deals with HP loans and not PCP, much smaller market but it's better to be a niche operator and prudent, specially in this environment.

[ssahoy18] 25/3/2020 16:40

whats going on here then..?

[jeffian] 24/3/2020 13:45

I agree to an extent but the two unknowns are when and at what level? A short stop and one imagines the UK economy will bounce back but a longer stop which damages the whole economy may mean that business restarts at a lower level. I think it would be unwise to assume that revenues, profits and dividends will simply pick up where they left off.

[gabsterx] 24/3/2020 12:58

That's true but I believe this will only be short term (less than a year) and I intend to hold for decades to come. So once they reinstate the divi it will be at a very high yield on cost. The price hasn't been this low since 2013 when the profits were a third of what they are today.

[jeffian] 24/3/2020 12:46

Yields are going to become immaterial in the short term. Have you seen how many companies are suspending their divs to conserve cash?

[gabsterx] 24/3/2020 12:15

Just bought 100 more shares today at 1460p, it might go down from here but it's already an amazing price for such a well managed company giving an almost 9% yield.

[chrismcglone] 23/3/2020 19:23

No surprise in the delay and we should expect continuing uncertainty and a suspension, or at the very least significant disruption, of BAU for at least the rest of 2020. This is bad. Very bad. But it will pass. Eventually. It would seem sensible for me to hold back for a few months. I’m in no rush (to sell either) and would much rather lose out on some upside while awaiting the storm to pass. Hang tight folks.

[pugugly] 23/3/2020 07:54

Messsage received re FCA instruction - Things generally in UK are far worse financially than generlly known - As apparently general instruction not company specific but wil (imo) add to panic selling of all stocks when market opens.

[gabsterx] 23/3/2020 07:50

Results delayed due to FCA Covid 19 instructions..