S&U, the motor finance and property bridging lender reports that group trading has strengthened.
Customer numbers for S&U’s motor finance business Advantage Finance have reached 54,000 against 43,000 a year ago and new transactions exceeded last year by 22% at 24,500, reflecting strong demand.
Advantage's Dealflo system, fully rolled out in the period, has led to a significant improvement in transaction-to-approval rates. The company expects this in turn to lead to further growth in high quality business, margin improvement and a gradual reversal in the recent impairment-to-revenue.
Aspen Bridging, the company’s property bridging pilot launched last year has issued over £10m of loans, many into the buoyant residential refurbishment market for starter family housing.
Costs have been controlled and lending margins and LTVs maintained to budget. We have already seen a number of repayments come through and we are increasingly confident in the long-term viability and prospects for this business.