S&U experiences hike in customer numbers

MOTOR finance and home credit provider S&U is experiencing “robust growth” across its divisions, it announced this morning.

In a trading statement covering the period from August 1 to December 10, the Solihull-based firm said Advantage Finance, its motor finance provider, “continues its impressive progress”, albeit at a slightly moderated pace of growth in new loan transactions.

It said debt quality has continued to improve even from last year’s record level and year to date, monthly collections are now 40% up on last year.

Customer numbers are over a third higher than last year.
 
S& U said Loansathome4U, its home credit business, enters the Christmas peak trading season with debt quality better than for many years and hence credit availability for customers at record levels.

“This is reflected in weekly collections ahead by 13% on last year, against a 7% increase in net receivables,” it said.
 
“The strength of our product offer and the responsibility of our lending is reflected in customer numbers which are up over 7,500 or 9% on 2013.

“In addition, a 9% rise in representative numbers shows our traditional commitment to high standards of customer care. Management expect that a successful Christmas trading period should confirm the current promising trend in profitability.”
 
The firm said that during the period, a further £15m has been drawn down from its M&G facility to finance growth in both of its businesses.

“Existing facilities provide us with adequate headroom for current requirements and anticipated growth later next year will be funded by additional facilities.”

Anthony Coombs, S&U Chairman, said:  “Robust growth throughout our businesses is the product of rising consumer confidence, strong debt quality and responsible lending.

“Our close relationships with our customers and loyal introducer brokers continue to bear fruit in building S&U. We therefore view the future with quiet confidence.”