We ave every confidence in the business whatever the outcome of the current maelstrom in Westminster.
Anthony Coombs, chairman
What S & U owns
The company, which is the holding company for Advantage Finance and Aspen Finance, was founded in 1938 and floated on the London Stock Exchange in 1961.
What S&U does
The company’s Advantage Finance business supplies finance facilities to UK motor dealers to provide loans to customers.
Focused on the used car market, it offers loans of up to £15,000.
Advantage Finance, which launched in 1999, now has more than 150,000 customers.
Aspen Bridging is the property bridging arm of the group. The business, founded in 2017, offers short-term unregulated loans against commercial and residential properties. It supplies up to £1mln per deal with an average loan of £375,000.
How’s it doing
Used car sales on finance via dealerships to consumers were 3% up year on year in the 12 months to July.
Profits rose by 3% to £17.1mln on sales 7% higher at £47.7mln.
The loan book was also up by 7% at £298.5m and the interim dividend rises by 6% to 34p.
Advantage has appointed Grahan Wheeler as its new chief executive. He joins from VW Financial Services.
What the boss says
Anthony Coombs, the chairman, said he has every confidence in the business whatever the outcome of the current maelstrom in Westminster.
For the year to January 2020, uncertainty and slightly higher costs mean costs Peel Hunt has trimmed its forecasts to profits of £36mln and EPS of 245p.
The shares have been one of the best performers in the sector over the last six months and trade on 8.4 times current year's earnings, which is close to the sector average.
Add says the broker with a 2,300p target price that compares to the market's 211p.