S&U (LON:SUS) Posts Quarterly Earnings Results

S&U (LON:SUS) announced its quarterly earnings results on Tuesday. The company reported GBX 96.80 EPS for the quarter, Digital Look Earnings reports. S&U had a return on equity of 9.68% and a net margin of 22.07%.

Here are the key takeaways from S&U’s conference call:

• Underlying profit growth: Group profit before tax rose 7% year over year on an adjusted basis, excluding last year’s exceptional Aspen recovery. The interim dividend increased to 36p per share from 35p, with management anticipating further dividend growth.
• Strong lending and funding expansion: Net receivables exceeded £541 million, while new three-year private warehouse facilities are expected to increase funding capacity from roughly £337 million to £650 million and potentially reduce financing costs. Completion and drawdown are anticipated in October, subject to finalization.
• Advantage reported improving credit performance: Repayments rose to 92% of amounts due from 90%, impairment remained broadly stable despite receivables growth, and the proportion of accounts six or more months in arrears declined. Management is targeting a doubling of Advantage’s market share over five years, supported by new origination channels, technology and AI investments.
• Higher leverage and mixed market conditions remain risks: Net borrowings increased to £285.1 million and group gearing rose from 97% to 114% as the company funded growth. Aspen faces a subdued UK property market and slower repayments, while its longer-term products create a later profit profile; management also acknowledged that greater securitization-driven gearing will increase financial risk.

S&U Stock Up 0.3%

LON SUS traded up GBX 5 during trading on Wednesday, hitting GBX 1,895. 19,923 shares of the company traded hands, compared to its average volume of 7,561. S&U has a 12 month low of GBX 1,620 and a 12 month high of GBX 2,458.50. The business has a fifty day simple moving average of GBX 1,971.38 and a 200 day simple moving average of GBX 1,959.29. The company has a current ratio of 1,290.95, a quick ratio of 58.00 and a debt-to-equity ratio of 97.18. The company has a market capitalization of £230.26 million, a P/E ratio of 9.71 and a beta of 0.56.

Analyst Upgrades and Downgrades

Separately, Berenberg Bank reiterated a “buy” rating and issued a GBX 2,310 target price on shares of S&U in a research note on Tuesday. Two research analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the stock presently has an average rating of “Buy” and an average price target of GBX 2,155.

Insider Buying and Selling at S&U

In other news, insider Anthony M. V. Coombs sold 3,300 shares of the company’s stock in a transaction dated Thursday, July 9th. The stock was sold at an average price of GBX 1,940, for a total transaction of £64,020. 62.01% of the stock is owned by corporate insiders.

S&U Company Profile

S&U plc provides motor, property bridging, and specialist finance in the United Kingdom. The company was incorporated in 1938 and is headquartered in Solihull, the United Kingdom.