S&U’s December trading update was reassuring, confirming strong growth in both customer numbers and receivables in the Advantage motor finance business. While impairments relative to revenues have ticked up, this was in line with management expectations. Our estimates are essentially unchanged and the valuation appears conservative given continued growth potential at Advantage and the new opportunity that the bridging finance pilot may provide.
15 Dec 2016
Strong growth continues
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Strong growth continues
S&U plc (SUS:LON) | 1,868 0 0.0% | Mkt Cap: 226.9m
- Published:
15 Dec 2016 -
Author:
Andrew Mitchell -
Pages:
5
S&U’s December trading update was reassuring, confirming strong growth in both customer numbers and receivables in the Advantage motor finance business. While impairments relative to revenues have ticked up, this was in line with management expectations. Our estimates are essentially unchanged and the valuation appears conservative given continued growth potential at Advantage and the new opportunity that the bridging finance pilot may provide.