S&U (SUS) Q1 2027 TU earnings summary

Executive summary

• Trading in the first quarter of 2026/27 is well above budget, continuing the positive turnaround from last year.

• Group profitability is ahead of both last year and budget, despite slower transaction growth due to economic and political uncertainties.

• Applications for finance remain strong in both motor and property finance segments.

Financial highlights

• Net interest margins improved, with Advantage's average lending rates up nearly 20% year-over-year to 15.3%.

• Advantage's repayment rates averaged 92.4%, up from 89.1% last year; collections reached £43.1m in the quarter.

• Aspen's capital receivables rose to £191m from £162m year-over-year, with a higher blended margin and longer-term profile.

Outlook and guidance

• Management maintains confidence in achieving double-digit growth and return on equity, supported by planned resource allocation.

• Projected net receivables growth of 20% annually for the next three years.