S&U — Strong trading update underlines turnaround

S&U has issued a trading update, covering the period to 10 December, which confirms the growth trajectory of the business. The recent Supreme Court (SC) decision has given legal clarity to the motor finance business, Advantage, which is continuing its strong recovery phase. Aspen, the property lender, continues to grow robustly, generating receivables over the period that were up c 17% to £173m. We view S&U’s current trajectory positively and believe the company will meet our FY26 forecasts. The SC judgement should put to rest any existential worries about Advantage, allowing the trend in growth to resume, further supporting numbers.