S&U (SUS) Trading Update summary

Group performance and outlook

• Trading remains solid despite challenging economic, regulatory, and political conditions.

• Group profit before tax for Q1 fell to £6.9m from £10.5m last year, mainly due to increased impairment provisioning.

• Net receivables grew to £478m and net assets to £235m, both up year-on-year.

• Customer numbers and receivables continue to grow, though at a slower pace.

• Management anticipates improved regulatory clarity in H2, supporting future growth.

Advantage Finance (motor finance)

• 2024 is a year of consolidation, with a cautious approach to repayments amid ongoing FCA discussions.

• Repayments in Q1 were 4% lower than last year, impacting profitability.

• Live monthly collections dropped to 87.7% of due in Q1, down from 92.1% last year.

• Application numbers hit a record high, with income and transactions above last year despite tighter criteria.

• Lending prices increased at the end of Q1, with expected moderation in summer lending volumes.

Aspen Bridging (property finance)

• Q1 advances more than doubled to £44.4m, with repayments up 55% to £38.5m.

• Net receivables reached £141.3m, up from £113.6m last year.

• Profit before tax rose 36% to a record £1.45m, with ROCE at 11% for the first time.

• Yield on new deals increased and is ahead of budget.

• Positive trends in the UK residential market are expected to continue and possibly accelerate.