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S&U PLC on Tuesday reported a double-digit yearly revenue climb in revenue, but a profit drop, as it grappled with ‘a combination of prolonged and raised interest rates’ as well as ‘a flurry of regulatory activity’.
The West Midlands-based lender, focused on motor finance and property bridging, said revenue increased 12% to £115.4 million for the year ended January 31, from the £102.7 million the year prior.
S&U’s pretax profit fell 19% to £33.6 million from £41.4 million from the previous year.
Hurting profit, administrative expenses rose 22% to £19.8 million from £16.3 million. Finance costs doubled to £15.1 million from £7.5 million. It reported an impairment charge of £24.2 million, rising 74% from £13.9 million.
S&U trimmed its final dividend by 17% to 50.00 pence per share from 60.00. The total dividend for the year amounted to 120.0p, a 9.8% cut from 133.00p.
Customer numbers at both S&U’s motor finance provider Advantage and its property financier Aspen were reported to be at a ‘record’ high, while net receivables for S&U reached a ‘best ever’ £462.9 million, an increase of 10% from the previous year.
Annual revenue for Advantage increased by 9.0% to £98.2 million this year, whilst Aspen’s revenue increased by 34% to £17.3 million.
S&U said it was a year which saw ‘times of change and contrasting fortune’. It noted it was a period of lofty interest rates, economic challenge in the UK, and a ‘flurry of regulatory activity’.
S&U Chair Anthony Coombs said: ‘Enthusiastic and supportive customers underpin S&U’s long success and guarantee its future. Current trends, both at Advantage and Aspen, prove that S&U has an abundance of these and trading since our year-end is encouraging. Of course, challenges remain.
‘As Marcus Aurelius, a second century Roman emperor and stoic philosopher, once said: ’sometimes the art of living is more like wrestling than dancing’. Confident in our people, business philosophy and the markets we serve so well, we wrestle on.’
S&U shares rose 1.3% to 1,900.00 pence each in London on Tuesday afternoon.
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