Strong motor finance results drive full year expectations for lender

Specialist lender, S & U has said a record year for its motor finance operation has put it on course to meet expectations.

In a trading update covering the period from December 8 to January 31, 2017, the Solihull company said trading had remained strong.

Advantage Finance, the group’s motor finance business, finished 2016 in a strong position, helped by the buoyant new car market.

Cash collections in the period covered by the statement were even stronger, beating 2016 levels by 31%, with both transaction numbers and loan advances comfortably beating last year.

This year Advantage achieved 20,000 new transactions for the first time, beating the previous record by nearly 5,000 deals; it now has a record 43,000 live customers.

It said loan quality remained good and is both stable and within expectations. The firm said this is fully justified the additional £33m invested in the business in the year just ended.

In December, its Aspen bridging finance operation received all necessary approvals, and it has now opened for business and the company has said it expects a successful pilot over the next 15 months.

Commenting on the trading and outlook, Anthony Coombs, chairman of S&U, said: “Within a robust domestic economy, a stable regulatory environment and a competitive market, we are confident in the group’s ability to continue to grow at a consistent and sustainable rate, and in the shareholder value that implies.”

The firm issues its final results for 2016 on March 28, 2017.