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S & U plc
(LSE:47IE)
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Rating:67Neutral
Price Target:
71.00 p
▲(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 profitability
The 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 generation
Repeated 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.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue rebound and sustained profitability
The 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.
Read all positive factors
S & U plc (47IE) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£229.65M
Dividend Yield605.78%
Average Volume (3M)3.36K
Price to Earnings (P/E)9.6
Beta (1Y)0.00
Revenue GrowthN/A
EPS GrowthN/A
CountryUK
Employees239
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)1.97
Shares Outstanding3,598,506
10 Day Avg. Volume0
30 Day Avg. Volume3,358
Financial Highlights & Ratios
PEG Ratio0.37
Price to Book (P/B)1.16
Price to Sales (P/S)2.68
P/FCF Ratio-7.85
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 Solihu...
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 cus...
S & U plc Earnings Call Summary
Earnings Call Date:Sep 29, 2026
(Q2-2026)
| Next Earnings Date:Mar 30, 2027
Earnings Call Sentiment Positive
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.
Read all updates
Q2-2026 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
74
Positive
Balance Sheet
68
Positive
Cash Flow
32
Negative
| 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 | 0.00 | 0.00 | 5.22M | 1.00K | 3.14M | 1.00K |
| 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | £12.92M | 3.89 | 14.71% | 3.31% | 63.15% | 212.72% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | £229.65M | 9.62 | 9.55% | 605.78% | ― | ― | |
67 Neutral | £235.00M | 4.13 | 41.54% | 2.22% | 25.27% | 69.00% | |
57 Neutral | £184.39M | 17.06 | 2.20% | 12.35% | 6.21% | ― | |
47 Neutral | £36.84M | -9.78 | -314.29% | 16.69% | ― | ― |
* Financial Sector Average
GB:47IE
S & U plc
65.00
3.88
6.34%
GB:ORCH
Orchard Funding
60.50
0.03
0.05%
GB:VANQ
Vanquis Banking Group
72.70
-47.30
-39.42%
GB:AMGO
Amigo Holdings PLC
2.75
2.45
816.67%
GB:ASAI
ASA International Group PLC
235.00
53.86
29.73%
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.