UK's S&U slips on lower Q1 profit, weak outlook

S&U

06/06/2024 09:02

** Shares of S&U Plc  SUS.L  slide ~6% to 1830p, most on the
FTSE small-cap index  .FTSC 
    ** The motor finance co posts smaller Q1 profit and says
2024 will be a year of consolidation for its motor business 
    ** Says cautious approach to repayments due to continuing
FCA discussions have had a significant impact on repayments and
profitability at it advantage finance business 
    ** Sees "some moderation" in summer motor finance lending
volumes
    ** Peel Hunt cuts estimates to "reflect the temporary impact
of regulatory actions and do not alter our view of the
attractive medium-term potential of the business"
    ** Brokerage lowers PT to 2,280p from 2,400p, keeps "hold"
    ** Stock extends YTD losses to ~16% vs a roughly 4.5% gain
last year

 (Reporting by Echha Jain in Bengaluru)
 ((Echha.jain@thomsonreuters.com))