S&U - Edison Group

Overview
Price performance
Financials
Research
Thematics

S&U’s Advantage motor finance business lends on a simple HP basis to lower- and middle-income groups that may have impaired credit records restricting access to mainstream products. It has c 65,000 customers. The Aspen property bridging business has been developing since its launch in 2017.

UK consumer confidence has weakened ahead of the UK budget although used car prices and transactions have remained stable year to date. UK residential property market data continue to improve as inflation and mortgage rates have moderated, and should continue to benefit from the expected further reductions in base rate.

Latest Insights

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Financials |
Update

15.10.24

S&U — The time to look ahead

Financials |
Update

23.09.24

S&U — Timing is everything

Financials |
Flash note

12.08.24

S&U — Anticipating regulatory clarity in H2

Financials |
Update

11.06.24

S&U — Elevated regulatory impact

Sector

Financials

Equity Analyst

Martyn King

Director, Financials

Key Management

Anthony Coombs

Executive Chairman of the Board
Chris Redford

FD

Balance Sheet

Forecast net cash (£m)

215.6

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
%	1M	3M	12M
Actual	(31.7)	(31.0)	(42.7)
Relative	(30.0)	(29.2)	(47.4)
52 week high/low	2310.0p/1260.0p

Financials

H125 PBT of c £12.8m was in line with the company’s earlier guidance, a significant decline versus the prior year period but an improvement compared with H224. Customer repayment collections and earnings in the motor finance business were materially affected by the temporary restrictions agreed with the Financial Conduct Authority. These have since been lifted, and while regulatory discussions are ongoing, this is an important step towards the strong recovery in motor finance earnings that we forecast. Meanwhile, as previously reported, the property lending division continues to perform strongly, with a positive outlook for continuing growth. The recent cut in the base rate, and those that may follow, should positively affect funding costs and earnings, with all debt variable rate and unhedged.

Y/E Jan	Revenue (£m)	EBITDA (£m)	PBT (£m)	EPS (fd) (p)	P/E (x)	P/CF (x)
2023A	102.7	49.4	41.4	277.5	4.5	N/A
2024A	115.4	49.2	33.6	209.3	6.0	N/A
2025E	117.9	46.1	27.0	165.8	7.6	6.6
2026E	120.3	55.0	36.3	224.0	5.6	N/A

Research

Update

Financials

26.05.23

S&U — Results on track to meet FY24 expectations

Outlook

Financials

31.03.23

S&U — Confident but remaining prudent in approach

Financials

Update

S&U — Softer volumes but solid EBITDA growth expected

Update

Financials

10.02.23

S&U — FY23 results set to meet expectations

Update

Financials

12.12.22

S&U — Positive trading update

Update

Financials

29.09.22

S&U — Experienced specialist lender performs well

Update

Financials

11.08.22

S&U — H1 growth ahead of expectations

Update

Financials

30.05.22

S&U — Positive update despite macro uncertainties

Outlook

Financials

01.04.22

S&U — Seeing recovery and adapting to grow

Update

Financials

11.02.22

S&U — FY22 profit beat and positive outlook

Update

Financials

10.12.21

S&U — Upbeat update

Update

Financials

01.10.21

S&U — H122 ahead of expectation and outlook good

Update

Financials

11.08.21

S&U — Reduced impairments underpin increased profit

Update

Financials

24.05.21

S&U — Strong start to the year

Outlook

Financials

08.04.21

S&U — Ready to meet unlocked demand

Update

Financials

15.02.21

S&U — Planning for a significant rebound

Update

Financials

14.12.20

S&U — Looking towards a resumption of growth

Update

Financials

07.10.20

S&U — Adapting to the new environment

Update

Financials

12.08.20

S&U — Still in profit and tentative positive trends

Update

Financials

11.06.20

S&U — Covid-19 impacts but ready to resume progress

Update

Financials

16.04.20

S&U — Sound liquidity, positive near-term cash flow

Update

Financials

12.02.20

S&U — Encouraging year-end update

Update

Financials

11.12.19

S&U — Resilient amid softer sentiment and economy

Update

Financials

30.09.19

S&U — Advantage growth resumes

Update

Financials

12.08.19

S&U — Trading update confirms positive trends

Flash note

Financials

24.05.19

S&U — Encouraging update

Outlook

Financials

04.04.19

S&U — Adjusting to prevailing conditions

Update

Financials

07.02.19

S&U — Lending discipline tempers pace of growth

Update

Financials

10.12.18

S&U — Trading broadly in line

Update

Financials

27.09.18

S&U — Positioning for sustainable growth

Outlook

Financials

12.04.18

S&U — Set for further growth with tighter credit criteria

Update

Financials

12.02.18

S&U — Good loan growth and credit experience on track

Update

Financials

08.12.17

S&U — Positive trend in quantity and quality of lending

Update

Financials

05.10.17

S&U — Strong loan growth continues

Outlook

Financials

07.04.17

S&U — Strong growth, cautious approach

Update

Financials

13.02.17

S&U — Update 13 February 2017

Update

Financials

15.12.16

S&U — Update 15 December 2016

Update

Financials

12.10.16

S & U — Update 12 October 2016

Update

Financials

20.05.16

S&U — Update 20 May 2016

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07.04.14

Executive Interview – S&U

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09.05.23

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17.03.23

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03.11.22

UK motor P&C insurers series

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05.10.22

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10.08.22

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11.05.22

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11.03.22

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23.08.21

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03.07.19

IFRS 16

thematic

Financials

26.06.19

DACH Industrial & Logistic Property

thematic

Financials

14.05.19

Time value of money

thematic

Financials

15.04.19

Cash flow

thematic

Financials

08.02.19

Enterprise versus equity valuation

thematic

Financials

15.01.19

Deutsche Börse’s Scale

thematic

Financials

08.01.19

Price to earnings ratio

thematic

Consumer

11.11.14

Deutsche Börse Eigenkapitalforum 2014 Research Guide