S&U (LSE:SUS), the specialist motor and property financier, said group profitability for the period 6 February to 30 April is ahead of both last year and budget in a trading statement covering the first quarter of 2026/27.
Trading in the quarter remained healthily above budget despite slower transaction growth, with applications at both Advantage and Aspen staying strong and net interest margins improving, notably at Advantage where average lending rates rose almost a fifth year-on-year to 15.3%, repayment rates at Advantage averaged 92.4% (89.1% last year) and collections received at Advantage were £43.1m, while Aspen's capital receivables increased to £191m against £162m last year.
Advantage said transactions were up 63% on Q1 last year, capital receivables stood at £392m versus £348m last year across 57,666 accounts, bad debt write-offs are down nearly 41%, customer repayments are 8% higher and Trustpilot scores remain 4.9 out of 5 after introducing a new credit scorecard and AI-driven customer relations as it targets 20% net receivables growth this year.
Aspen Bridging reported profit before tax on budget and equal to last year, a recent upturn in applications and deal numbers, only 15 of 246 live accounts beyond term, Bridge-to-let collections and fees of £1m in the quarter, and said it anticipates another record year.
Group borrowing at the quarter end was £252m within facilities of £330m, management flagged projected net receivables growth of 20% pa for the next three years may require an additional c£300m and said terms for a securitisation have been agreed and the legal process will start with details to be announced shortly.
"Suffice to say that confidence in our aims for double digits growth and return on equity is exemplified by the resources we plan to make available, and the abilities of our people in achieving them," said S&U Chairman Anthony Coombs.
