S & U (SUS)

S & U SUS Logo

The specialist hire purchase motor finance and property bridging lender.

7-Dec-2017 – 2420p – £290.2m – PER 10.4

Trading Update For The Period 1st August To 6th December 2017 – Demand for products remains robust.

There’s quite a lot to like here (except the £81.1m Net Debt, 25%+ of Mkt Cap), I will put it on my Watchlist for now.

Subsequently revised Watchlist price, 2000p.

9-Feb-2018 – 2200p – £263.8m – PER 9.43

Trading Update For The 12 Months To End January 2018 – “Trading remains strong and in line with expectations”. Total Dividend this year will be 60p (52p 2017, 43p in 2016 and 36p in 2015), impressive considering it’s also reasonably well covered.

Still like this and it’s still on my Watchlist, 2000p.

27-Mar-2018 – 2340p – £280.6m – PER 10.0

Preliminary Results For The 12 Months To End January 2018 –  Revenue up 32% at £79.8m (2017: £60.5m), PBT up 20% at £30.2m (2017: £25.2m), Basic EPS up 19% at 203.8p (2017: 170.7p). Total Dividend up 15% to 105p (2017: 91p). Outlook is with quiet but real confidence.

If it was not for the sector and outlook I would be more interested. It will stay on my Watchlist for now at 2000p.

18-May-2018 – 2760p – £331.2m – PER 11.1

AGM Statement – Looks like general all round progress to date of about 20% or so.

I keep missing out from gains in this sector (automobile) as I am wary of the sector. Here we have a PER of about 10 for a company growing (steadily) at about 20% per annum. This was on my Watchlist at 2000p (I will up that to 2500p now) although I do believe it may be worth paying up here – Perhaps!

3-August-2018 – 2515p – £301.9m – PER 9.60

Trading Update – I am wondering if the person that wrote this even knows what he/she is trying to say! I think things are in-line.

I still quite like this and it was on my Watchlist at 2000p. For now though, because this latest update is clear as mud, I will go Neutral and keep an eye out for results.

25-Sep-2018 – 2560p – £310.9m – PER 9.69

Interim Results For The 6 Months To End July 2018 – Revenue up 23%, PBT up 17%, as is EPS. Interim Dividend is up from 28p to 32p. Quietly confident for the future.

I remain Neutral – Kicking myself for not getting involved here at 2000p I will probably be doing the same for not getting involved at this level.

7-Dec-2018 – 2150p – £258.2m – PER 7.98

Trading Update – FY to be broadly in-line with expectations.

Still looks attractive and even with (you know what) in the background, this is quite tempting (5%+ yield), forecast 10%+ EPS growth 2019E & 2020E, healthy ROCE and Op Margin. What’s stopping me – The amount of Net Debt (which is probably acceptable for a lender I guess) and the potential default rate depending on how (you know what) goes. Tempting, but not just quite enough, especially on a broadly in-line.

6-Feb-2019 – 2100p – £253.4m – PER 8

Trading Update For The 12 Months To End January 2019 – FY in-line.

Still tempting but just not enough!

26-Mar-2019 – 1767p – £212m – PER 7.1

Results For The 12 Months To End January 2019 – Revenue and PBT up 15%, EPS 14%, FY Dividend 12%, the “prognosis for the next twelve months is realistic, but optimistic”.

Still a lot to like here but the Net Debt and the sector just put me off enough to keep me on the sidelines for now.

23-May-2019 – 2220p – £267m – PER 8.8

Trading Update For The Period From 1st February To 22nd May 2019 – Seems positive enough but no reference to FY expectations.

I still quite like this but the sector and Net Debt keep me away at present.

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