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(Sharecast News) - S&U posted an uplift in half-year revenues on Tuesday, despite an "unpromising" economic and political backdrop.
The car finance and bridging loans specialist saw revenues come in at £57.3m in the six months to 5 August, up from £51.8m, while pre-tax profits nudged up to £15.7m from £15.6m. Basic earnings per share rose to 96.8p from 95.5p and group net receivables jumped to 26.8% to £541m.
Within that, motor finance business Advantage Finance saw pre-tax profits rise to £11.8m from £10.8m, helping to offset a £1m decline in profits at Aspen Bridging, to £4m. Aspen has been hit by a sluggish property market and concerns about potential interest rate hikes in the face of heightened inflationary pressures.
Anthony Coombs, chair, said: "St Paul's letter to the Galatians reminds us that as we sow, so shall we reap.
"However unpromising the economic and political environment in which we are apparently pre-destined to operate, S&U intends to rise above it. Current trends indicate our ability to do just that, to the benefit of our customers and shareholders."
Following the results, Berenberg trimmed its expectations for full-year adjusted pre-tax profits to £34.1m from £34.9m, on delayed confirmation of the new funding facility. The broker said the delay was likely to create a "small drag" on interest expense.
However, it reiterated its 'buy' recommendation, noting: "The company reported a resilient first half performance. The company is close to confirming its new funding facilities which could provide up to £650m of funding to replace the existing facilities at an improved rate over the next three years.
"Our reduced profitability expectations have no material impact on value per share for the 2028 full-year."
S&U is a client of Berenberg.
As at 0930 BST, the stock was trading nearly 2% lower at 1,934.9p.
S&U was founded in Birmingham in 1938 as a general retailer called S&U Stores. It moved away from retail to become a standalone credit business in the 1970s, launching Advantage Finance in 1999 and Aspen in 2017.
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