S&U PLC on Thursday reported ‘good trading’ during the period of August 1 to December 7, despite ‘economic and political chaos’.
The Solihull-based motor finance and bridging lender firm said it continues to trade well despite a period of ‘economic and political chaos unprecedented in most of our lifetimes’.
It noted that the change in government, rising inflation and interest rates as well as an ‘incipient recession’ was not the ideal landscape for any business.
However, S&U hailed trading, saying that it is focusing on the ‘excellent quality of customer relationships and the receivables’. It said these receivables have now reached a net amount of £404 million, against £370 million at the half-year end.
Looking ahead, S&U expects trends to continue for the remainder of the financial year.
Chair Anthony Coombs said: ‘Current pessimism about the UK’s economic prospects, standard of living and consumer confidence may have been overdone. However, S&U’s 80 years plus of experience makes it wise to tread carefully in managing its growth. Whilst more optimistic than many, we will continue to do so until greater stability returns, and the economic skies brighten.’
In Motor Finance, profitability remained good and ‘in line with expectations’. Collections totalled a record £72.8 million in the period.
In September, S&U said it recorded a pretax profit of £21.0 million in the six months to July 31 from £19.9 million a year before, as revenue rose to £49.4 million from £42.8 million.
Shares were up 1.4% at 2,128.80 pence each on Thursday afternoon in London.
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