Record pre-tax profits for S&U
SOLIHULL based niche home credit and motor finance provider S&U has seen full year pre-tax profits rise by a record 16% to £14.2m (2012: £12.2m), while earnings per share were up 22%.
The firm said revenues were up 6% at £55.0m (2012: £51.9m) and it has proposed a final dividend of 20p (2012: 18p). Total dividend in respect of the year increased 12% to 46p (2012: 41p).
Anthony Coombs, chairman of S&U, said: “We celebrate S&U’s 75th anniversary by announcing record profit before tax of £14.2m. Our founder Clifford Coombs’ watchwords were his care for his customers, his obsession with the quality of service he provided them and the inspirational way he imbued these qualities in those who worked for them.
“This passion is still S&U’s guiding purpose today and as a result, we face the future with renewed vigour and great confidence.”
That confidence has been underlined by plans for a £6m investment in its Advantage Motor Finance operation for 2013/2014, to reflect what it calls “sensible and achievable” expansion plans. Home Credit product developments are expected to come on line during the second half of this year.
Net assets increased by 11% to £61.1m (2012: £54.9m), while borrowings increased to £20.6m (2012: £18.8m) with group gearing reduced to 33.7% (2012: 34.3%).
The group said its Motor Finance operation saw pre-tax profits rise 37% to £8.1m (2012: £5.9m); driven by 17% revenue growth and record collections quality.
Its Home Credit division saw pre-tax profits dip slightly to £6.1m (2012: £6.3m).
Group annual collections were up over £7m on the prior year; Home Credit up nearly £2m and Motor Finance up over £5m. It said there had been a further 35% increase in Motor Finance advances during the year, with continuing good trends in collection quality.
