S&U PLC on Tuesday reported a slightly higher profit despite marked revenue growth, as costs increased.
The Birmingham, England-based specialist motor and property financier said pretax profit in the first half of 2023 rose 2.4% to £21.4 million from £20.9 million a year prior. Revenue rose 12% to £55.3 million from £49.4 million. Administrative expenses increased 18% to £9.4 million from £8.0 million.
The company declared an unchanged interim dividend of 35 pence per share.
‘Brexit, Covid and now the re-emergence of inflation have all contributed to a challenging back-drop to S&U’s activities; yet, despite this, we have been consistently able to report steady growth in both profit and receivables. This reflects our commitment and ability to provide an excellent service for our customers, made possible by the stalwart efforts of our superb staff. However, we do not exist in a vacuum. Government policy as it affects taxation, borrowing costs and the demands of regulation inevitably influences the commercial and consumer environment in which we work,’ the company said.
Looking ahead, Chair Anthony Coombs said: ‘S&U continues to trade well and despite current economic challenges and environment, S&U’s track record gives cause for cautious optimism. With sensible economic management, the potential for the motor and property markets in which we operate remains significant. As always, we continue to lay the foundations - financial, consumer, operational and marketing - to sustainably take advantage of them.’
S&U shares were 0.2% higher at 2,250.00 pence each on Tuesday morning in London.
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