‘Firm base’ provides small rises in revenues at S&U

SOLIHULL-based niche home credit and motor finance provider S&U has enjoyed a small rise in revenues and pre-tax profit in the first half of 2011.

In its interim results for the six months ended July 31, 2011, the firm has seen revenues climb by 5% to £24.8m compared with £23.6m in H1 2010.

Pre-tax profit increased to £6.4m from £5.4m while earnings per share have also risen from 33.2p to 39.9p.

The plc said it had enjoyed good progress on sales in its home credit division with a 4% rise while a new branch in Derby had made a “promising start”.

It its motor finance division, revenues were up year-on-year by 7% with the period seeing its “highest ever loan transactions, collections and pre-tax profits”.

“Despite the faltering UK economic recovery, there is significant scope for sensible growth in S&U’s markets and in related areas of expertise,” the statement added.

Chairman Anthony Coombs added: “These results and our current trading give real cause for optimism for the future, but we are never complacent.

“We intend to use the firm base we have established as a spring board for further expansion in both divisions.

“Whilst our overall customer numbers continue to grow at a sensible and sustainable pace, the faltering UK recovery demands that we continue our focus upon the quality of our debt, our collections and our consequent cash flow.

“Collections are 5% ahead of last year on capital receivables up by 3%.”