SUS reported its interim results for 1H 2018 ending 31 July 2018 with revenue at £44.5m, a 23% increase on IFRS16 comparable basis. The profit before tax (PBT) grew 17% to £16.7m (1H 2017: £14.3m) while earnings per share (EPS) was up 17% to 112.6p (2017: 96p).
The motor finance division, Advantage saw an increase both in customers to 58,000 (2017: 49,000). Loan applications rose to 510,000 (1H 2017: 440,000), posting a record level for any half year. The monthly collections for Advantage rose 20% to £67.7m (1H 2017: £56.4m). The rolling 12 months impairment to revenue rose to 24.7% as on 31 July 2018 (31 December 2017: 21.9%) on IFRS9 and IFRS16 adjusted basis. Advantage implemented tighter underwriting in 1H with 25% approval ratio (2017: 31%). Aspen Bridging reported a profit of £279,000 in 1H 2018 (1H 2017: loss of £280,000) and was shortlisted for the best newcomer and won the ‘New Product of the Year’ at the Bridging and Commercial Awards.
A first interim dividend of 32.0p (2017: 28.0p) per share was declared and will be paid on 16 November 2018.
Anthony Coombs, SUS’s chairman, commented: “Demand for our products and services remains strong despite a more challenging consumer and economic climate. We are therefore confident of maintaining S&U’s record of strong, stable and consistent growth in years to come.”