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(Sharecast News) - Motor finance business S+U said on Tuesday that pre-tax profits had contracted in the year ended 31 January, despite the group's improved revenue performance throughout the period.
S+U said revenues had increased 12% to £115.4m, with group net receivables also increasing by 10% to £462.9m.
However, impairment charges rose from £13.9m to £24.2m, reflecting increased motor arrears during H2, and group net finance costs doubled to £15.0m on higher borrowings and increased base rates.
As a result, S+U said pre-tax profits had slipped from £41.4m to £33.6m in FY24 and basic earnings per share fell to 209.2p from 277.5p,
Net borrowings also rose from £192.4m to £224.4m, while gearing hit 95.8%, up from 85.5%.
"Enthusiastic and supportive customers underpin S&U's long success and guarantee its future. Current trends, both at Advantage and Aspen, prove that S&U has an abundance of these and trading since our year-end is encouraging. Of course, challenges remain," said chairman Anthony Coombs. "Confident in our people, business philosophy and the markets we serve so well, we wrestle on."
As of 0945 BST, S+U shares were 0.12% lower at 1,872.80p.
Reporting by Iain Gilbert at Sharecast.com
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