19 November 2019
By Maynard Paton
Results summary for S & U (SUS):
- Record first-half figures that showed revenue up 7%, operating profit up 3% and the dividend up 6%.
- Bad debts within the Advantage car-loan division have started to subside following 18 months of sharp increases.
- Management remains upbeat as loan applications continue to flood in, and has appointed an industry ‘heavyweight’ as the new Advantage MD.
- Progress at Aspen Bridging was “slightly short of expectations” but the division’s long-term potential could be considerable.
- Possible P/E of 11 and yield of 5.8% do not appear expensive if indeed the business can enjoy “a resumption of [its] usual rates of growth”. I continue to hold.