Edison Investment Research - SU PLC (SUS) - Strong loan growth continues

Report

Edison Investment Research

Andrew Mitchell

- Strong loan growth continues

First half loan growth at S&U’s motor finance business remained strong at 30%, even though lending criteria have been tightened following a previous mix change towards higher-risk customers. Impairments are set to stabilise as the portfolio rebalances, while the company’s focus on providing hire purchase loans to non-prime borrowers for used vehicles using a well-established underwriting system should provide reassurance to investors concerned about the wider motor finance market.

05/10/2017 7 EN

Underlying

S&U PLC

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

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GB0007655037 London Stock Exchange United Kingdom

Provider

Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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Analysts

Andrew Mitchell

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- Strong loan growth continues

S & U plc (SUS LN) - Dividend increase - BUY

S & U plc (SUS LN) - Regained its Va Va Voom - BUY

S&U - Regulatory uncertainty holding back recovery

Manx Financial Group - Termination of coverage

musicMagpie - Termination of coverage

Topps Tiles - Accelerating growth through Q125

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