Credit firm S&U agrees £30m debt facility to fund new loans
SOLIHULL-based motor finance and home credit group S & U has agreed a new £30m debt facility.
The firm, which said in March it was confident of the year ahead after announcing record profits, said the seven-year facility had been agreed with M&G Investments.
The facility will be drawn down in tranches of £15m now and £15m in six months and the firm said it would use the funds to grow its loan book.
Chairman Anthony Coombs said: “We are delighted to have secured new funds from M&G Investments on attractive terms to grow our loan book.”
In its full-year results, the company said pre-tax profit increased by 21% to £17.3m (2013: £14.2m), while revenue was up 11% at £60.8m (2013: £55m). Earnings per share were 113.2p (2013: 92.6p) and the board has recommended a final dividend of 24p (2013: 20p), taking the total for the year to 54p per share (2013: 46p).
Much of the company’s success was due to the performance of its motor finance arm, Advantage Finance.
The operation now contributes around two thirds of group profit.
The firm will update the market further later this month.
