S & U plc (47IE) AI Stock Analysis

S & U plc

(LSE:47IE)

Select Model

Rating:67Neutral

Price Target:GBX 71.00▲(9.23% Upside)

Action:reiterated

Date:09/30/26

The score is primarily held back by weak and volatile cash flow and meaningful leverage despite strong profitability and a sharp 2026 revenue rebound. Valuation is supportive via a low P/E and the earnings call was constructive on growth/dividends and funding capacity, while technical signals are neutral-to-slightly positive.

Positive Factors

Strong revenue rebound and sustained profitabilityThe sharp 2026 revenue rebound demonstrates renewed lending activity after the softer 2024–2025 period, while consistently strong margins show the model can convert loan growth into profit. This combination supports reinvestment and preserves earnings potential over the next several quarters.

Negative Factors

Weak and volatile cash generationRepeated negative operating and free cash flow, including the sharp 2026 outflow, means reported earnings are not consistently translating into internally generated liquidity. This can restrict funding flexibility and increase reliance on external borrowing as receivables grow.

S & U plc (47IE) vs. iShares MSCI United Kingdom ETF (EWC)

Market Cap: GBP 164.21M
Dividend Yield: 605.78%
Average Volume (3M): 50.38K
Price to Earnings (P/E): 9.5
Beta (1Y): 0.00
Revenue Growth: ―
EPS Growth: ―
Country: UK
Employees: 239
Sector: Financial
Sector Strength: 68
Industry: Financial - Credit Services

S & U plc Business Overview & Revenue Model

Company Description

S&U plc is a UK-based financial services firm, offering a range of products including automotive loans, property bridging finance, and other specialized lending solutions. Founded in 1938, the company's main operations are directed from its Solihull...

How the Company Makes Money

S & U plc primarily makes money by originating loans and earning interest income and related credit charges over the life of those loans. A key revenue stream is its motor finance business, where it provides vehicle-backed (secured) lending to custom...

S & U plc Earnings Call Summary

Earnings Call Date:Sep 28, 2026(Q2-2026)|% Change Since:0.00%|Next Earnings Date:Sep 24, 2018

Earnings Call SentimentPositive

The call was broadly positive. Management reported higher revenue, 7% like-for-like PBT growth, strong Advantage lending and repayment trends, record Aspen receivables, very low historical Aspen capital losses, increased dividends, and significant investment in technology and future funding capacity. The main challenges were subdued and difficult U.K. property-market conditions affecting Aspen, higher cost of sales and finance costs, rising gearing, a decline in Advantage first payments from recent highs, and securitization details that remained unfinished. The highlights significantly outweighed the lowlights.

Positive Updates

Like-for-Like Profit Growth

Profit before tax was GBP 15.7 million versus GBP 15.6 million last year, a 1% increase. Excluding the large unexpected Aspen recovery included in the prior-year result, like-for-like PBT increased 7% year on year.

Negative Updates

Headline Profit Growth Was Limited

Reported profit before tax increased only 1%, from GBP 15.6 million to GBP 15.7 million, although management noted that the prior year benefited from a large unexpected Aspen recovery.

Company Guidance

Management anticipates replicating the GBP 0.36 dividend for the two further dividends in the year, producing a significant increase on the GBP 1.15 paid last year; it expects growth observed during the period to continue alongside “strong, sustainable growth,” with two new three-year private warehouses and a small RCF facility expected to increase funding capacity from GBP 337 million to GBP 650 million, with signing and drawdown hoped for in October. Advantage is executing a 60-month strategy to significantly grow market share to a point representing a doubling of market share by the end of that five-year period, while Anthony Coombs said the group targets doubling the size of its book in the next five years. Aspen has achieved annual growth of 16% and believes it can continue this progress, while the group anticipates securitization will produce profit and dividends in the next few years and expects a saving in finance costs.

S & U plc Financial Statement Overview

Summary

Profitability and revenue momentum improved (notably the ~40% revenue rebound in 2026), but the overall financial picture is constrained by weak and volatile cash generation (negative operating/free cash flow in most years, including a large outflow in 2026) and meaningful leverage that has risen again.

Income Statement

74Positive

Balance Sheet

68Positive

Cash Flow

32Negative

Financial statement breakdown
Breakdown	TTM	Jan 2026	Jan 2025	Jan 2024	Jan 2023	Jan 2022
Income Statement
Total Revenue	113.02M	107.43M	97.49M	100.38M	102.71M	87.89M
Gross Profit	85.16M	82.92M	97.49M	92.11M	78.51M	68.59M
EBITDA	48.73M	46.65M	24.46M	49.14M	49.43M	51.32M
Net Income	23.88M	23.71M	17.91M	25.44M	33.72M	37.98M
Balance Sheet
Total Assets	545.95M	501.22M	445.06M	466.85M	428.17M	327.23M
Cash, Cash Equivalents and Short-Term Investments	0	0	5.22M	1,000	3.14M	1,000
Total Debt	285.64M	241.98M	197.79M	225.25M	196.54M	114.44M
Total Liabilities	294.90M	252.22M	206.98M	232.68M	203.29M	120.48M
Stockholders Equity	251.04M	249.00M	238.08M	234.16M	224.88M	206.75M
Cash Flow
Free Cash Flow	-82.01M	-36.70M	64.27M	-711.00K	-63.59M	-2.47M
Operating Cash Flow	-81.29M	-35.81M	64.99M	-446.00K	-62.76M	-2.09M
Investing Cash Flow	-9.72M	-839.00K	-685.00K	-189.00K	-660.00K	-284.00K
Financing Cash Flow	87.50M	31.44M	-59.09M	-2.50M	66.56M	2.38M

S & U plc Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

GB:47IE against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GB:ORCH	69Neutral	GBP 14.95M	4.09	15.18%	5.71%	53.19%	129.54%
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
GB:47IE	67Neutral	GBP 228.43M	9.54	9.55%	605.78%	―	―
GB:ASAI	66Neutral	GBP 245.00M	4.38	41.54%	5.00%	25.27%	69.00%
GB:AMGO	53Neutral	GBP 33.16M	-8.84	-314.29%	―	―	―
GB:VANQ	51Neutral	GBP 109.32M	10.05	2.20%	―	6.21%	―

* Financial Sector Average

Performance Comparison

GB:47IE and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
GB:47IE	S & U (47IE)	65.00	3.88	6.34%
GB:ORCH	Orchard Funding	70.00	14.61	26.38%
GB:VANQ	Vanquis Banking Group plc	43.10	-70.10	-61.93%
GB:AMGO	Amigo Holdings	2.48	2.10	560.00%
GB:ASAI	ASA International Group PLC	245.00	77.97	46.68%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 30, 2026

S & U plc AI Stock Analysis