In a recent interview, S&U PLC chairman Anthony Coombs shared insights into the company's full-year performance, showcasing resilience in the face of economic and regulatory challenges. The company's motor finance and property bridging products have seen strong demand, with Aspen, its property bridging division, reaching a lending milestone of half a billion. This achievement underscores the division's significant role in the company's portfolio and its potential for future growth.
Despite the robust performance, the motor finance division, Advantage, faced hurdles from higher interest rates and increased regulatory scrutiny by the Financial Conduct Authority (FCA). These challenges have impacted profit growth, prompting the company to adapt its strategies and enhance cooperation with the FCA to uphold best-in-class procedures. Coombs emphasized the importance of maintaining high standards in affordability and customer care, especially for vulnerable customers, amidst these regulatory pressures.
Customer numbers at Advantage have reached record levels, a testament to the company's strong market position and the enduring demand for its services. Coombs also addressed broader economic concerns, including recession fears and the cost of living crisis, noting their impact on lending practices. However, he remained optimistic about the company's ability to navigate these challenges, thanks to its long-term focus on customer service and resilience.
On the property market front, Coombs highlighted the resilience of house prices and a persistent supply shortage, which he views as a substantial opportunity for Aspen. The division's focus on lending to individuals involved in property refurbishment or construction fills a gap left by traditional banks, positioning Aspen for continued success in a niche but growing market.
S&U PLC has declared a final dividend of 50 pence per share, reflecting confidence in its financial health and future prospects. Coombs' outlook is positive, with an emphasis on sustainable profit growth and a balanced approach to capital appreciation and dividend yield for shareholders. The company's strategic focus, coupled with its adaptability to regulatory and economic changes, positions it well for continued success in the evolving financial landscape.
