The outlook is positive for S & U PLC (LSE:SUS) after six-month results, which revealed the impact of regulatory scrutiny of the car finance industry and hit its Advantage Finance operation, according to broker Peel Hunt.
With the stock trading at around seven times its expected earnings for 2026 and offering a 6.9% dividend for 2025, it presents good long-term value for investors, it points out.
The shares rose 4% to 1,719.86p in morning trading after the interims came in as forecast at the time of the company's trading statement.
With the figures came a cautiously optimistic assessment of prospects. Scrutiny from the Financial Conduct Authority, while directly impacting the company's Advantage business, should also provide a "sustainable basis" for future growth, the company said.
Chairman Anthony Coombs told investors: "Half-year results for Advantage reflect a temporary adjustment to shifting market dynamics and... More at #Proactive #ProactiveInvestors http://ow.ly/kCf0105Ljpn
Partnership Director - LSEG
3moDelighted to witness and contribute to these fantastic H1 results. Now I am back to work!