REG - S & U PLC - Trading Update

S&UAnnouncement

19/09/2024 14:00

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RNS Number : 9215E  S & U PLC  19 September 2024

This announcement contains inside information

19 September 2024

S&U plc

("S&U" or "the Group")

Trading Update

 

S&U PLC, the specialist motor and property finance lender, today issues an
update for its expectations for the financial year ending 31 January 2025.

 

Advantage Finance

As previously referenced in the Group's announcement on 12 August the cautious
approach and business retrenchment adopted by Advantage Finance, the Group's
motor finance division, since the imposition of the Financial Conduct
Authority's ("FCA") Section 166 notice have continued to impact the
performance of the division, primarily resulting from restrictions on its
collections capabilities.

 

Whilst Advantage continues to actively pursue a conclusion of negotiations
with the FCA for a removal of the restrictions soon, their cumulative impact
on Advantage Finance's profitability has caused Advantage's first half
profitability to fall below expectations. As a result, Group profits in H1 are
expected to be c.£12.8m and this is likely to cause the Group's financial
year profitability to 31 January 2025 to fall below market expectations.

 

However, the Group still anticipates improvements in Advantage Finance's
performance in the second half brought about by a plan to be implemented upon
the anticipated removal of the FCA's restrictions and appropriate
modifications as a result.  The timing of these nevertheless remains
uncertain.

 

Aspen Bridging

Aspen Bridging, S&U's property lending division, continues to deliver
strong and profitable growth driven by robust business momentum and excellent
credit quality whilst the outlook for the division remains exciting owing to a
healthy deal pipeline, its talented and entrepreneurial team and the backdrop
of falling interest rates.

 

S&U will announce its half year results on 8 October 2024 at which point
it anticipates providing additional detail on Group and divisional performance
and an update on the outlook for the full year.

 

Commenting on S&U's trading outlook, Anthony Coombs, S&U Chairman,
said:

"Although operating conditions at our motor finance business remain
challenging, we are confident in our plan to improve performance once it is
set in motion in the second half. Aspen continues to deliver healthy results
and faces a bright future."

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

 

 

ENDS

 

For further information, please contact:

 Enquiries                                     S&U plc        c/o SEC Newgate

 Anthony Coombs
 Financial Public Relations                    SEC Newgate    020 7653 9848

 Bob Huxford, Molly Gretton, Harry Handyside
 Broker                                        Peel Hunt LLP  020 7418 8900

 Andrew Buchanan, Oliver Jackson

 

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