S & U : Trading Update and Notice of Results

03 August 2018

S&U plc

('S&U' or 'the Group')

TRADING UPDATE AND NOTICE OF RESULTS

S&U plc, the motor finance and property bridging specialist, today issues a trading update for the period from its AGM statement of the 18 May to the 31 July 2018. It will announce half year results for the period ended 31 July 2018 on the 25 September 2018.

Trading

Against a background of a strong UK labour market albeit in a slowing economy, Advantage Finance, our motor finance subsidiary, continues to trade well with profits again at record levels. Whilst the new car market may have slowed, recent Finance and Leasing Association data shows the used car finance market we serve has been growing by 12% year on year. This is reflected in the recent average of over 80,000 monthly finance applications received by Advantage Finance.

However, following recent rates of expansion, a prudent focus on quality has seen acceptance levels tighten to 25% of applications (H1 2017: 31%), of which completed transactions comprise 9% (H1 2017: 8%).

This selectivity is consistent with both Advantages' emphasis on customer affordability and with our long-term strategy of sustainable growth. Customer numbers now stand at a record 58,100, 18% up on last year, and net receivables have now reached £263.0 million, up 15% on last year (H1 2017: £228.6million).

On debt quality, although impairment continues to run at higher levels than last year, recent underwriting refinements have led to early indications of an improvement in both new customer quality and early repayment performance. Overall monthly collections in H1 2018 are 20% up on H1 2017 and are now approaching £12million per month.

Aspen Finance, our property bridging business, continues to build both its market reputation and profitability. It recently won New Product of the Year at the Bridging and Commercial industry awards. Debt quality, as reflected in its repayment performance, is good. Its loan book now exceeds £16million from £11million at year end.

Commenting on the Group's trading and outlook, Anthony Coombs, S&U chairman, said:

'Advantage Finance maintains its remarkably reliable record of continued profitable growth over the past nineteen years in a variety of macro-economic conditions. Improvement in product, customer service and in underwriting strengthens their ability to build on this in years to come.

Aspen Bridging, our new bridging lender, has made a promising debut and is now profitable.

Both businesses give me every confidence that S&U will continue to deliver consistent improvements in shareholder value.'

For further information, please contact:

S&U plcwww.suplc.co.uk

Enquiries:

Anthony Coombs	S&U plc	c/o Newgate Communications
Financial Public Relations Bob Huxford, James Ash, Imogen Humphreys	Newgate Communications	020 7653 9848 [e-mail]
Broker Adrian Trimmings, Rishi Shah	Peel Hunt LLP	020 7418 8900