S&U PLC Delivers Strong Trading Update with Record Receivables and Dividend Increase

Collections at 93% of due versus 87% last year is the standout datapoint. That is a big step-up and usually points to improved affordability checks, stronger payment behaviour, or both. The team continues to refine underwriting, update scorecards and affordability assessments, widen distribution, and test AI with third-party specialists to sharpen decisioning.

A neat kicker at year-end: the sale of long-term written-off accounts generated £3.4 million of proceeds. That is non-core and lumpy, but it drops cash into the pot and underlines operational discipline.

Aspen Bridging – record year, higher yields, and tiny historical losses

Aspen has delivered its best year since launch in 2017. Despite a sluggish housing market, its speed and service helped push deals to a record 267 and lending to £212 million. Capital receivables are around £188 million, up 21% year-on-year.

The apparent mismatch between higher deal count and receivables is explained by a record £188 million of recoveries and a tilt towards smaller ticket loans in a cautious borrower market. That smaller-loan trend has started to reverse, and critically, average blended yields stayed above budget. The shift to longer-term products aimed at more experienced customers looks intact.

Credit quality remains a calling card: of £790 million of loans written since inception, total capital loss is just £150,000, and currently only 19 of 243 deals are beyond term. That is a remarkably tight book and provides a sturdy base if the expected gradual recovery in UK residential activity comes through.

Funding and liquidity – RCF lifted to £280m and long-term facilities in train

With Group borrowing steady at £241 million in recent months and growth continuing, S&U expects it will need around £100 million of additional investment next year. The Group has already increased its revolving credit facility from £230 million to £280 million, with new CFO Chris Freckelton credited for the work. Management is also lining up longer-term facilities to support the next five years of expansion.

In plain English, they have more headroom today and are building a runway for tomorrow. For lenders like S&U, stable and diversified funding is as important as customer demand – it lowers risk and underpins dividend capacity. Leverage is not explicitly detailed here, but the combination of higher receivables, better collections, and fresh facilities is a constructive mix.

Regulation watch – FCA commission redress remains an uncertainty

The company remains engaged with the Financial Conduct Authority via the Finance and Leasing Association on the proposed redress scheme for finance commissions. A response from the FCA is still awaited, and the topic is likely to surface when FCA leaders appear before the House of Lords Regulatory Select Committee.

S&U characterises its recent meeting with senior FCA figures as “positive and pragmatic”, though it is cautious on how that cascades through the organisation. The direction of travel matters: a manageable, proportionate approach would reduce tail risk. Until the FCA response lands, this remains a watchpoint.

Dividend uplift and key dates for shareholders

The Board proposes a second interim dividend of 35p per share, up from 30p last year. Payment is due on 6 March 2026 to shareholders on the register on 20 February 2026. That increase signals confidence in current trading and future growth prospects.

Full-year results are scheduled for 21 April 2026. Profit, EPS and full-year dividend totals are not disclosed in this update.

Why this update matters for investors

• Momentum with quality: Receivables growth is being matched by stronger collections at Advantage and outstanding credit discipline at Aspen. That combination is rare and valuable.
• Funding in place: The RCF step-up to £280 million and work on longer-term facilities support the growth plan without starving the dividend.
• Diversified engines: Advantage is gaining share in used car finance, while Aspen is scaling with attractive yields and low losses. Two engines, two end-markets.
• Regulatory overhang: The FCA commission redress scheme is the primary uncertainty. A sensible outcome would reduce risk premia for the sector.
• Shareholder alignment: A higher interim dividend and the appointment of Karl Werner to the Board underscore confidence and continuity.

Net-net, this is a strong update. The positives – record receivables, improved collections, Aspen’s record year, expanded facilities, and a higher dividend – outweigh the negatives, which are mainly macro caution and regulatory uncertainty. The proof will arrive with April’s results, but for now, S&U looks to be trading with pace and discipline.