Investment analysts will be rushing to upgrade their estimates for S&U after the home credit and car finance firm said full year results will significantly exceed market expectations.
The home credit division has "traded well" since Christmas with customer numbers up, helped by new store openings in Swindon and Glasgow.
S&U revealed it has bought the home credit business of Rotherham firm Norton Financial Services. The acquisition will be immediately earnings enhancing and will strengthen S&U's presence in the Yorkshire area.
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The price paid for Norton was not revealed, but S&U did say the firm had gross assets on the date of acquisition of around £0.75m and that the consideration will be paid from S&U's cash reserves.
The acquisition is unlikely to be the last, with the company boasting it has "significant fire power to develop our existing businesses organically and to continue to make acquisitions to expand our business."
Since the end of fiscal 2010/11 borrowings have reduced by nearly £3m. Gearing has fallen to under 35% from 43% last year and 57% two years ago, the group revealed.
The company predicts motor finance will produce "another record year" in 2012/13 while describing the last two months of trading as "buoyant".
S&U's board has decided to pay a second interim dividend of 12p, pushing the dividend up 20% over the equivalent point of the prior year. The final dividend is expected to come in at 16p on payment at the end of June.
The market likes what it sees, S&U shares had gained 6.8% by 9.08pm. Over the last 12 months the stock is up 4.9%.
BS
