S & U – 985p

26 March 2013 – final results

Annual results to 31 January were very impressive with yet further growth being recorded – revenues rose 6% to £55.0m (2012: £51.9m) whilst pre-tax profits were 16% higher at £14.2m (2012: £12.2m).  Earnings per share were 22% higher at 92.6p (2012: 76.1p), and the dividend for the year was raised to 46p (2012:41p).  Although like-for-like pre-tax profit in the Home Credit division was 2% higher at £6.1m, the star performer yet again was the Motor Finance division which increased pre-tax profits by 37% to £8.1m helped by a 17% increase in revenues and lower bad debts.  With gearing at the year end of just 33.7% and a new £7m medium term borrowing facility put in place since the year end, the group is well-placed for further expension and we rate the shares as a BUY.

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