19 October 2021
By Maynard Paton
Results summary for S & U (SUS):
- A record H1 profit performance supported by a “lower than normal” bad-debt provision and the dividend rebounding 50% to pre-Covid levels.
- The main car-loan division has recovered well from the pandemic, with collection rates (94%) and on-time first payments (98%) now standing at multi-year highs.
- The fledgling property-loan operation enjoyed a bumper six months following the government CBILS scheme.
- Interest charges at 3%, increased borrowing facilities and headroom of £65m indicate no obvious funding concerns.
- The £28 shares are close to an all-time high and may already reflect management’s webinar talk of car-loan volumes increasing 25% to 25,000 a year. I continue to hold.