S&U (LSE:SUS), the specialist motor and property financier, reported pre-tax profit of £15.7m for the half year to 5 August, broadly flat against £15.6m a year earlier, as revenue rose 11% to £57.3m.
Group net receivables climbed 26.8% to a record £541m, funded by an additional £43.3m of net borrowings that pushed net borrowings to £285.1m and gearing to 114%.
Advantage Finance, the group's motor finance arm, drove the improvement with pre-tax profit up 9.3% to £11.8m on advances that jumped 48.7% to £105m, while repayments against amounts due improved to 92% from 90%.
Aspen Bridging, the property lender, saw profit fall to £4m from £5m, a period that had benefited from a large unexpected recovery; a soft UK property market, with Halifax data showing house prices down for two consecutive months, weighed on margins even as receivables rose to £199.9m from £147.8m.
Chairman Anthony Coombs said trading reflects "determination to make the necessary investment at the right returns to maximise our rewards in the future", adding that current trends support that ambition despite an uncertain economic and political backdrop.
The board declared a first interim dividend of 36p per share, up from 35p.
S&U has substantially concluded the legal process on a new three-year securitisation facility worth up to £600m with two banking partners, with formal signing and drawdown expected in October.