S&U — A tale of two businesses

S&U published an update on trading to 31 January (end-FY25) and will release its annual results on 15 April. Group performance continues to be characterised by strong growth in the property lending division, with regulatory headwinds for motor finance. The Supreme Court has agreed to hear an appeal against the lower court ruling on undisclosed commission payments, which is of great significance to lenders across the consumer finance sector and to the FCA. We see significant upside potential for the shares, contingent on a successful resolution of the matter.