Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Shares
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
S&U revenue up, profitability a challenge in first half
(Sharecast News) - Motor and property finance specialist S&U reported a mixed first-half financial performance on Tuesday, after group revenue increased 9% year-on-year to £60.4m. The London-listed company said profit before tax fell to £12.8m, from £21.4m in the prior year, partly driven by a £2.8m rise in finance costs, reflecting higher borrowings and increased interest rates.
Its net receivables grew to £475.4m, up from £417.3m a year earlier, while group equity increased marginally to £233.4m.
S&U announced a first interim dividend of 30p per share, down from 35p in the first six months of the 2023 financial year, and reported a rise in group gearing to 103%, up from 80% the previous year.
Advantage Finance, S&U's motor finance arm, saw revenue rise to £49.1m, but profit before tax dropped significantly to £9.4m from £19.1m a year ago.
That was largely due to an increase in impairment charges, which surged to £18.1m from £6.8m, while its collection rate fell to 87% from 94% in the prior period.
Net receivables for Advantage Finance stood at £326.2m, largely stable compared to earlier periods.
Aspen Bridging, the group's property finance division, reported strong revenue growth, reaching £11.2m, up from £7.9m in the first half of 2023.
Profit before tax for Aspen rose to £3.4m from £2.4m in the same period last year.
Net receivables grew to £149.3m, up from £104.3m a year earlier, supported by collection repayments and recoveries of £72.8m.
Overall, while S&U's revenues increased, the group faced profitability challenges in its motor finance business, impacted by rising impairment charges and higher finance costs, offset by a solid performance from its property finance division.
"Half-year results for Advantage reflect a temporary adjustment to shifting market dynamics and evolving regulatory expectations," said chairman Anthony Coombs.
"Nevertheless, the resulting internal reforms should provide greater certainty for renewed success.
"Meanwhile, in the more dynamic bridging sector, Aspen continues to perform strongly.
"We embrace the future with our usual cautious optimism."
At 1038 BST, shares in S&U were up 5.71% at 1,754.75p.
Reporting by Josh White for Sharecast.com.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity, Equity & Inclusion | Doing Business with Fidelity | Diversity, Equity & Inclusion Reports | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Staying secure | Statutory and Regulatory disclosures | Whistleblowing programme
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.