S&U trending ahead of FY24, awaits Supreme Court verdict

(Sharecast News) - Specialist lender S&U said on Wednesday that its optimism in its FY results was "gradually and clearly being justified" by the group's recent performance, particularly over the past two months.

S&U said it was now tracking "ahead of 2024 at half-year and accelerating from there", driven by improved sales numbers, stronger collections at Advantage and the "tapering" of additional professional and regulatory costs.

The London-listed group stated net receivables for its motor finance unit, Advantage, were �273.0m, down from �337.0m the previous year but trending "above budget".

However, S&U pointed out that it was still waiting for the Supreme Court to deliver its verdict on whether it was unlawful for banks to pay a commission to car dealers without the customer's informed consent. S&U said a "clear and pragmatic decision" would provide "much-needed clarity" to the sector and support Downing Street's mandate of improving Britons' access to credit.

Aspen, S&U's property lender, was said to have continued to "power ahead", with record profits in Q1 and a 7% year-on-year increase in receivables, despite higher-than-expected repayments of more than �57.0m.

Chairman Anthony Coombs said: "Throughout our history, S&U's people have skilfully adapted to new market conditions and opportunities. This is evident now at both Advantage and Aspen and has happily continued in May.

"Assuming a stable and supportive environment from policymakers, regulators, and the Courts, we believe these efforts will translate into improved profitability this year and in the future."

As of 0900 BST, S&U shares were down 2.63% at 1,480.0p.

Reporting by Iain Gilbert at Sharecast.com