22 April 2021
By Maynard Paton
Results summary for S & U (SUS):
- A predictably Covid-blighted statement that confirmed extra write-offs of £19.5m, full-year profit diving almost 50% and the first annual dividend cut since at least 1987.
- Various calculations indicate credit quality at SUS’s motor-finance division declined by approximately 10%, due mostly to payment holidays.
- Management’s webinar comments claimed property-loan profit could quintuple to £5m within the next three years.
- Reduced net debt, interest charges at 3% plus fresh borrowing facilities suggest no obvious funding concerns.
- The £24 shares may already reflect improved collection rates, recovering loan transactions, new loan quality at a five-year high and the generally upbeat directors. I continue to hold.