S & U has secured up to £600m of lower-rate securitisation funding for an initial three-year term, replacing its £330m facilities in full and expanding lending capacity. Its longer-term benefits depend on deploying the funding only into loans that meet its historic return thresholds.
S&U’s H1 revenue rose 11% to £57.3m and pre-tax profit edged up to £15.7m, supported by motor finance growth. Receivables expansion drove operating cash outflow and lifted net borrowings to £285.1m; refinancing is expected in October.
S&U reported record group capital receivables of £616m, up 20% from £512m last year, while Aspen repayment patterns slowed in a difficult sales market.