S&U Trading Update Note
S & U's interim results broadly confirmed our forecasts and the strength of the business model. The company is deliberately increasing its underwriting criteria in motor lending (Advantage) in the face of still rising demand. We believe that this will result in declining impairment charges, relative to revenue, from the latter half of (calendar year) 2019 onwards. Together with the prospect of a positive decision on the Aspen Bridging Finance pilot, we are now more confident of the medium-term outlook for S & U. In the short term, loan growth is likely to continue to be slow while impairment may still rise as a function of the complexion of the historic loan book. However, we don't believe this will be material, so are content to leave our forecasts unchanged across the timeframe. On value, the company's peer group has experienced share price weakness of late, reducing the comparative ratios, while S & U has seen its market value rise. However, despite these movements, theoretical value remains over 20.0% above the current share price level.S & U is engaged in the provision of consumer credit and car finance throughout the United Kingdom.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.