Car finance firm S&U has told investors it is on course to meet market expectations.
In a year-end update ahead of its full year results, the Solihull-based S&U said its home credit division exceeded expectations between December 8, 2009, and January 31.
During the same period its motor finance division returned “very buoyant sales” compared to the previous year, the firm added.
Chairman Anthony Coombs said: “Despite the uncertain economic and political outlook, S&U’s consistency of approach both strategically and in its relationship with its customers, bodes well for continued progress throughout the group.
“Current trading in both our home credit and motor finance divisions reflects these promising trends. In addition, we are actively pursuing expansion within our existing markets this year through acquisitions. These efforts will be reflected in both S&U’s profitability and in the returns we make to shareholders”.
S&U said its balance sheet continues to strengthen as group borrowings reduced by £5 million since the end of last year despite the seasonal funding trends, which required increased financing to fund customer loans in the Christmas period.
The company’s gearing continues to be lower against comparatives and is currently 57% against 74% two years ago.