Report
Scott Fulton

S&U Initiation Note: Playing to its Advantage

S & U is a testament to the fact that focused management, clear strategy and prudent accounting can produce superior returns in most markets. The company provides motor finance to the non-prime demographic in the UK. It has produced an unbroken record of profitability in this area for almost twenty years. As a result, S & U represents a pure play on non-standard finance and a potentially resilient segment of the UK car market; a near unique combination within the wider sector. Using an average of simple comparative valuation ratios, derived from the non-standard lending peer group, we believe that the shares have a theoretical value of 3218p or 39.9% higher than the current traded value.
Underlying
S&U PLC

S & U is engaged in the provision of consumer credit and car finance throughout the United Kingdom.

Provider
Capital Access Group
Capital Access Group

Capital Access Group advises companies on effective engagement with investors. Our experienced team offers market-leading access with hard-to-reach investors, including smaller institutions, pension funds and private client fund managers. These under-serviced investors are located not only in London but across the regions of the UK and Europe. We have an unrivalled knowledge of this extensive audience, to whom our published research is distributed, as well as to larger institutions. We offer this service as part of an integrated investor communications strategy to promote a company’s investment story.

Our clients, ranging from AIM to FTSE 100 companies, benefit from our professional, long-term relationships with investors. Not only do we identify and target investors, we contact them directly and relay their views back to clients with analysis, interpretation and advice. This ensures that our clients are in control of their investor engagement. The objective is to improve the reach and engagement with investors, which in turn strengthens the share price.

Analysts
Scott Fulton

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