S&U (SUS) investor relations material

Executive summary

• Profit before tax rose 32% to £31.8m, reflecting strong recovery in both motor finance and property bridging.

• Net group receivables increased to £496.8m, nearing £500m, driven by robust lending and improved collections.

• Motor finance (Advantage) profit before tax increased to £23.4m; property bridging (Aspen) delivered record profits.

• Impairment charges fell significantly, aided by better collections and a one-off debt sale.

• Customer satisfaction remains high, with a Trustpilot score of 4.9/5.

Financial highlights

• Revenue declined 7% year-over-year to £107.4m due to lower average receivables and a shift to lower-yielding loans.

• Group impairment charge dropped 63% to £13.0m, reflecting improved collections and a £2.5m Q4 debt sale.

• Cost of sales rose 44% and admin expenses 31%, driven by higher staff costs and FCA commission provision (£1.8m).

• Net receivables up 12% to £317m (Advantage) and 18% to £179.7m (Aspen).

• Net borrowings increased to £241.8m, with gearing at 97%.

Outlook and guidance

• Confident in future growth, with expansion contingent on lending opportunities and margin discipline.

• Securitization projects and extended credit facilities to enhance funding flexibility and reduce cost of funds.

• Continued investment in AI, new products, and sales channels expected to drive growth.

• Expectation of continued strong collections and normalized impairment levels.

• Three-year plan targets 60%+ growth in receivables, subject to market and macroeconomic stability.