S&U PLC, under the leadership of chairman Anthony Coombs, has showcased a strong performance in its full-year results, despite encountering significant economic and regulatory challenges. The company's motor finance and property bridging products have seen robust demand, with its property bridging division, Aspen, reaching a notable half-billion lending milestone. This achievement underscores the division's critical role in addressing the underserved market of individuals refurbishing or building properties, a sector traditionally overlooked by conventional banks.
However, the motor finance division, Advantage, faced hurdles due to rising interest rates and heightened regulatory scrutiny from the Financial Conduct Authority (FCA). The FCA's focus on forbearance, affordability, and vulnerable customers has necessitated adjustments in Advantage's operations. Coombs emphasized the company's commitment to adapting to these regulatory demands, ensuring compliance while striving for best-in-class procedures. Despite these challenges, Advantage achieved record customer numbers, a testament to the division's resilience and the enduring demand for its services.
The broader economic landscape, marked by recession fears and cost of living pressures, has also influenced S&U's lending practices. Coombs addressed these concerns, highlighting the company's neutral stance towards potential political changes and its unwavering focus on long-term customer service. The resilience of house prices and a persistent supply shortage in the property market were noted as key factors driving opportunities for Aspen, further solidifying S&U's optimistic outlook.
In a move reflecting confidence in its financial health and future prospects, S&U declared a final dividend of 50 pence per share. Coombs expressed optimism about the company's ability to sustain profit growth, balancing capital appreciation with dividend yield to benefit shareholders. This strategic approach, coupled with S&U's adaptability to regulatory and economic shifts, positions the company for continued success in the evolving financial landscape.
