S&U — Recovering in line with expectations

Ahead of its AGM, S&U has issued a trading update and management continues to strike an optimistic tone. The motor finance business, Advantage, has started to recover from the challenges of the past two years, with lending volumes increasing once again and collections showing good improvement. Aspen, the property lender, continues to grow strongly, generating a record profit for Q126. We view the continued recovery positively and, based on the current trajectory, believe S&U will hit our FY26 forecasts. The outcome of the upcoming Supreme Court judgement concerning motor finance commission, expected in the next few weeks, is difficult to predict, but S&U remains optimistic of a pragmatic decision that will bring welcome clarity to the sector, and to investors.