From Yahoo Finance: 2025-04-16 06:32:00

S&U plc saw a 28.6% drop in pre-tax profits to £24.0 million due to weaker performance in its Advantage Finance unit, facing increased impairment charges and reduced lending volumes. Group revenue remained flat at £115.6 million, while basic earnings per share fell to 147.4p from 209.2p. Shares fell nearly 2% following the news.

Advantage Finance reported a 42.7% decrease in pre-tax profits to £16.5 million, with revenues down 6.5% to £91.8 million. Impairment charges rose to £33.2 million, while monthly repayment collections fell to 86% and net advances dropped to £109.4 million. Aspen Bridging, however, saw pre-tax profits rise 50% to £7.2 million.

Group-wide impairment charges rose to £35.6 million, reflecting higher arrears in the motor finance portfolio. Net receivables decreased to £435.8 million, and net borrowings were reduced to £192.3 million. S&U declared a final dividend of 40p per share, down from 50p the previous year.

Chairman Anthony Coombs acknowledged a challenging year for the motor finance sector, citing legal and regulatory challenges. He expressed optimism for recovery, noting that most issues have been resolved. Coombs emphasized the resilience of Advantage Finance and the company’s positive outlook for the future.



Read more at Yahoo Finance: S&U profits slide 29% as motor finance arm hit by regulatory fallout