Strong motor finance market gives credit firm S&U a major Advantage

Solihull-based credit provider, S&U, has announced strong full year results, driven by the success of its motor finance operation.

The specialist lender said the results for the year ended January 31, 2017 included a 17th successive year of record Advantage Motor Finance pre-tax profits.

Overall, pre-tax profit from continuing operations was up 29% at £25.2m (2016: £19.5m), while revenues grew 34% to £60.5m (2016: £45.2m).

Basic earnings per share from continuing operations were up 28% at 170.7p (2016: 133.6p) and the company has proposed a final dividend up 6p to 39p (2016: 33p), with the total dividend for the year increased to 91p (2016: 76p).

Investment in motor finance increased year-end net borrowings to £49.2m (2016: £11.9m) and committed funding facilities increased to £95m post year-end, which the firm said gave it “significant headroom”.

Within the Advantage Motor Finance operation, pre-tax profits rose to £25.2m (2016: £20.4m), with annual collections up 33% and live customers up 32% on the prior year.

Annual advances were up 31% in what the company said was a “buoyant but more competitive market”.

In total, the operation served 20,042 new agreements from more than 750,000 motor finance applications.

Anthony Coombs, chairman of S&U, said: “S&U continues to go from strength to strength with our motor finance business delivering its 17th successive year of record pre-tax profits.

“This excellent track record is testimony to the dedication, expertise, drive and wisdom of our team at Advantage. The road to sustained success is not made up of a giant leap but of a thousand small steps, and this kind of approach will continue to sustain and dynamise our business over the next decade.”