S&U says trading is on target
SOLIHULL-based home and auto credit specialist S&U said results are expected to be in line with market expectations, with gearing now below 50%.
The company said despite a chilly climate both meteorologically and in consumer confidence, the home credit division traded well over Christmas and January.
The group said whilst debt quality continues to strengthen and home credit remains highly cash generative, it is putting in place measures to further extend the range of customers with whom it regularly does business.
At a time of year traditionally associated with a lull in the used car market, the group said its motor finance product Advantage had bucked the trend to produce two months of trading more than matching the exceptional results it has achieved this year.
Group borrowings have been reduced by nearly £5m since the end of last year. Gearing is now below 50% against 72% two years ago. As a result S&U said it has the financial strength to power its organic and acquisitive expansion for the foreseeable future.
The board board confirmed the payment of a second interim dividend of 10p per ordinary share. It also intends to recommend paying a final dividend on the 10th June 2011 of not less than 15p per ordinary share for the year ending 31st January 2011.
Anthony Coombs, chairman, said: “Both our current trading and plans for the future confirm my “cautious confidence” of two months ago.
The current performance of the Group augurs well for S&U’s future profitability and the returns we continue to make to our much valued shareholders.”
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