Motor finance arm performance helps S&U to speed ahead

SOLIHULL-based finance provider S&U has said that current trading remains strong and that its motor finance business is producing record results.

In a trading update covering the period from December 10 to the company’s year end on January 31, the specialist lender said current trading remains strong and in line with market expectations.
 
Advantage Finance, its motor finance business, continues to produce record results. 

Live customer numbers are now around 32,500 up over 32% on the same time last year and budgeted new transactions for the year were exceeded “comfortably”.

This reflects the investment during the past financial year of £27m into developing the motor finance business, S&U said.
 
It said new refinements to its underwriting systems have allowed Advantage to deepen its understanding of its traditional customers.

“This leads to even more opportunities for the higher margin, high quality business which has been Advantage’s hallmark.  As a result an expanded book of excellent quality is reflected in monthly collections which are now approaching £7m,” the statement said.
 
S&U said it is continuing to examine potential acquisition and start up opportunities in a “rigorous and painstaking way” and has added to its development team.

The recent reverses in stock market values have confirmed its impression of unrealistic pricing last year and may lead to better value in the coming months, it said.
 
Chairman Anthony Coombs  said: “Although the slight rise in real incomes in Britain over the past year has led to greater consumer confidence, particularly in the car market, current economic uncertainties will place a premium on those finance companies possessing the best underwriting systems and highest debt quality.
 
“Coupled with a more stable political and regulatory environment, that will continue to reward the business methods and customer focus for which Advantage Finance is rightly admired.”
 

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