S&U (LON:SUS) Announces Earnings Results

S&U (LON:SUS) announced its earnings results on Tuesday. The company reported GBX 195.20 earnings per share for the quarter, Digital Look Earnings reports. S&U had a net margin of 18.65% and a return on equity of 8.33%. 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 2.3%

Shares of LON SUS opened at GBX 2,004.66 on Thursday. S&U has a twelve month low of GBX 1,420 and a twelve month high of GBX 2,458.50. The firm has a fifty day simple moving average of GBX 2,067.89 and a 200 day simple moving average of GBX 2,021.86. The company has a market capitalization of £243.59 million, a PE ratio of 12.20 and a beta of 0.49.

Analysts Set New Price Targets

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

S&U Company Profile

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.