The Solihull-based group, which provides finance for 140,000 people throughout the country, said current trading and profitability within its home credit division was “very satisfactory” and is encouraging for the full year outlook.
Advantage Finance, its motor finance business which comprises just over 30 per cent of group revenue, continues to trade well and to exceed budget, it said.
Finance director Chris Redford said the company remained strong despite the credit crunch and was not struggling for credit itself.
He said: “People are finding it harder to get credit from the mainstream banks and therefore more people migrate into our territory. People who need the money and are prepared to pay the interest rates are coming to us.
Mr Redford added: “At the moment funding is not particularly an issue for us because we have got quite a lot of headroom.”
S&U, which was founded in Birmingham in 1938, said in a trading statement, its funding position was “strong and continuing to strengthen”.
Gearing and borrowings are both less than last year, the latter by more than £4 million and it said medium term finance and overdraft facilities give potential for growth and acquisitions.
It continued: “As predicted S&U’s trading has remained strong and the company has strengthened its balance sheet, despite a particularly volatile and uncertain time in the economic cycle.
“Current trends suggest further progress in the second half, and a business performance which reflects the robust nature of our business model in the challenging economic environment.”
The company intends to post its half year results on September 24.