S&U trading in line

Home credit and motor finance provider S&U said current trading is satisfactory and expects to meet full year market expectations.

Home credit and motor finance provider S&U said current trading is satisfactory and expects to meet full year market expectations.

Underlining its confidence in future trading, the group said it plans to pay a total dividend for the year ended January 31st of at least 44p compared to last year's 41p.

Among its two main divisions, the doorstep lender said trading at its home credit division was in January was good.

"Debt quality remains strong and, following encouraging results in pilot areas, new products are being introduced which will extend the appeal of home credit to a broader customer base," the group said in a company statement.

Its motor finance business saw its best-ever transactions and collections figures during the fourth quarter, with customer numbers now close to 15,000. S&U said it anticipates further growth in this division.

The group said it continues to invest in motor finance, whilst benefiting from good cash generation in home credit.

Borrowings are higher than last year, but its said its financial position remains strong. Group gearing remained at around 34%.

Chairman Anthony Coombs said: "The continued success of our business during subdued, even recessionary times should not be taken for granted...We approach our 75th anniversary with confidence".

CJ

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