UK's S&U FY net profit beats analyst expectations on vehicle loan demand

S&U

21/04/2026 07:23

Overview

UK motor finance and specialist lender's preliminary revenue fell and missed analyst expectations

Operating profit missed analyst expectations but net income beat

Company proposed a higher final dividend of 45p per share

Outlook

Company says Middle East conflict is creating uncertainty around interest rates and consumer confidence

S&U expects resilient demand for affordable used vehicles to support Advantage division

Company says Aspen faces uncertainty in UK residential property market due to buyer caution

Result Drivers

LOWER IMPAIRMENT CHARGES - Co said group impairment charge fell to £13.0m from £35.6m, reflecting improved loan book quality and better collection rates, especially at Advantage

INCREASED ADVANCES AND LOAN AGREEMENTS - Advantage saw a 44% rise in new loan deals and higher advances, driven by demand for affordable vehicles and improved credit quality

RECORD ASPEN PROFIT AND RECEIVABLES - Aspen Bridging profit and receivables reached record levels, helped by a 40% increase in new loan deals and disciplined lending despite a sluggish property market

Company press release: ID:nRSU2080Ba

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
FY Revenue
Miss
GBP 107.43 mln
GBP 115.38 mln (4 Analysts)
FY Basic EPS
Beat
GBP 1.95
GBP 1.79 (3 Analysts)
FY Net Income
Beat
GBP 23.71 mln
GBP 23.60 mln (3 Analysts)
FY Operating Profit
Miss
GBP 46.16 mln
GBP 46.90 mln (2 Analysts)
FY Pretax Profit
Beat
GBP 31.82 mln
GBP 31.50 mln (4 Analysts)
FY Gross Profit
GBP 70.85 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the consumer lending peer group is "buy"

Wall Street's median 12-month price target for S&U PLC is GBp2,460.00, about 22.4% above its April 20 closing price of GBp2,010.00

The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)