S&U (LON:SUS) Posts Quarterly Earnings Results

Key Points

• Strong recovery in FY26 as profit before tax rose 32% to £31.8m, Advantage PBT reached £23.4m and group receivables are approaching £500m, with management targeting further growth over the next three years.
• Management is pursuing a major securitisation programme to roughly double funding capacity using non‑recourse structures to lower cost of funds and create headroom for measured expansion.
• Funding and cost risks remain: net borrowings increased to £241.8m (gearing 97%) and admin expenses rose 31% (including a £1.8m FCA provision), although credit metrics improved and Q4 benefited from a £2.5m debt‑sale gain.

S&U (LON:SUS - Get Free Report) released its quarterly earnings results on Tuesday. The company reported GBX 195.20 EPS for the quarter, Digital Look Earnings reports. S&U had a return on equity of 8.33% and a net margin of 18.65%.The business had revenue of £107.43 million during the quarter.

Here are the key takeaways from S&U's conference call:

• Strong recovery in FY26 — profit before tax rose 32% to £31.8m, Advantage PBT increased to £23.4m and group receivables are approaching £500m, with management targeting further growth over the next three years.
• Management is pursuing a major securitisation programme to roughly double funding capacity, using non‑recourse structures to lower cost of funds and create headroom for measured expansion if attractive lending opportunities arise.
• Credit and collections have improved materially — Advantage repayments averaged 90.5% of due (vs 85.6% prior year), up‑to‑date accounts rose to 71.8%, and impairments fell, although Q4 benefited from a £2.5m debt‑sale gain.
• Funding and cost dynamics warrant monitoring — net borrowings increased to £241.8m (gearing 97%) and admin expenses rose 31% (including a £1.8m FCA commission provision), with management saying costs should normalise but some impairment and funding pressures may resurface as the book grows.

S&U Stock Up 4.0%

Shares of SUS traded up GBX 80 on Tuesday, hitting GBX 2,090. 14,053 shares of the stock traded hands, compared to its average volume of 9,729. S&U has a 1 year low of GBX 1,400 and a 1 year high of GBX 2,458.50. The stock's 50 day moving average is GBX 2,085.09 and its two-hundred day moving average is GBX 2,020.61. The firm has a market capitalization of £253.96 million, a P/E ratio of 12.72 and a beta of 0.49.

Wall Street Analysts Forecast Growth

Separately, Berenberg Bank lowered their price target on S&U from GBX 2,350 to GBX 2,220 and set a "hold" rating on the stock in a research note on Tuesday. One analyst has rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of GBX 2,110.

About S&U

S&U plc provides motor, property bridging, and specialist finance in the United Kingdom. The company was incorporated in 1938 and is headquartered in Solihull, the United Kingdom.

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