S&U (SUS) Trading Update summary

Advantage Finance performance

• Cautious approach and business retrenchment at Advantage Finance continue due to FCA Section 166 notice, restricting collections capabilities.

• First half profitability for Advantage Finance fell below expectations, impacting overall group profits.

• Group profits for H1 expected to be around £12.8m, with full-year profitability likely to fall below market expectations.

• Improvements in Advantage Finance are anticipated in H2, contingent on the removal of FCA restrictions, though timing remains uncertain.

Aspen Bridging performance

• Aspen Bridging continues to deliver strong and profitable growth, supported by robust business momentum and excellent credit quality.

• The division benefits from a healthy deal pipeline, a talented team, and the backdrop of falling interest rates.

• Outlook for Aspen Bridging remains positive, with expectations of continued growth.

Outlook and upcoming updates

• S & U will announce half-year results on 8 October 2024, providing further detail on group and divisional performance.

• Management remains confident in plans to improve Advantage Finance performance once restrictions are lifted.