S&U increases its 2014 final dividend by 25%

DividendMax Ltd.

S&U increases its 2014 final dividend by 25%

Key Financials:

Profit before taxation up 34% at £23.2m (2014: £17.3m)

Earnings per share up 38% at 156.0p (2014: 113.2p)

Revenues up 22% at £74.4m (2014: £60.8m)

Proposed final dividend of 30p (2014: 24p); total dividend in respect of the year increased to 66p (2014: 54p)

Strong balance sheet:

o Net assets increased by 17% to £81.5m (2014: £69.4m)

o £30m additional longer term borrowing facilities arranged during the year

o Borrowings increased to £53.6m (2014: £32.4m); group gearing still conservative at 65.8% (2014: 46.6%)

Divisional highlights:

o Motor Finance profit before taxation up 42% to £16.7m (2014: £11.5m); driven by 38% revenue growth and record collections quality

o Home Credit profit before taxation up 11% to £6.5m (2013: £5.8m); driven by 10% revenue growth

Operational Highlights:

Group total annual collections up over £28.0m on prior year; Motor Finance up 40% and home credit up 11%

Further 48% increase in Motor Finance advances this year - further growth planned in healthy competitive market

Home Credit; advances up 11% on last year and three new branches opened in the year; one more planned in H1 15

Motor Finance; growth of £33.4m in net receivables with continuing good trends in collection quality

Anthony Coombs, Chairman of S&U plc commented:

"This year Group profit has risen by 34% and substantial growth has been seen across all of our companies. Although the new Regulatory Regime, signs of emerging competition and the forthcoming General Election create the usual uncertainties, our expertise, the commitment of our people and the loyalty of our customers and introducers give us great confidence for the future."

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