09 October 2020
By Maynard Paton
Results summary for S & U (SUS):
- Extra write-offs totalling £13.8m did not seem too awful in the circumstances and should reflect the bulk of the pandemic disruption.
- The interim dividend was reduced by 35% and management hoped for a full-year payout of between 80p and 100p per share.
- Payment ‘holidays’ have left some 37% of accounts overdue, but monthly collections have rebounded to a respectable £12m after the half-year.
- Net debt of £108m remains significant, although cash flow covered interest payments a very reasonable 10x.
- The shares trade relatively close to book value and could offer double-digit annual returns assuming a full recovery. I continue to hold.