23 September 2010

Interim results from the consumer and motor finance group S & U have revealed that the group has continued to make solid progress in the six months to 31 July.  Pre-tax profits have risen by 8% to £5.4m with earnings per share increasing by 9% to 33.2p.  Strong cash flow has resulted in yet another fall in gearing and the group looks well-placed to develop its business further.  We have increased our profit forecasts for the coming year and with the shares on a prospective dividend yield of 6.6% there is scope for them to be re-rated.