While AstraZeneca, Vodafone & M & S will be making all the headlines, today we have also had news from a stock I have written about several times before, namely S & U plc (SUS). This was their IMS for the period from 1st February to 19th May 2014 ahead of their AGM today. This showed further growth of 49% in receivables versus the prior year at the Advantage motor finance side.This was helped by a growing band of introducer's and brokers and they say margins have been maintained and debt quality is at its best ever. The Home Credit side was described as very promising as sales and collections exceeded expectations as they took advantage of consolidation in the industry. They opened three new branches and customer numbers were up by 6,000 and they also touched on regulation and the recent finance raised from M & G.
Talking of finance, debt has increased on the back of the growth in the business with gearing indicated at 58% which they say leaves adequate headroom plus they say they are continuing to pursue a deposit taking licence. All in all it looks like a strong start to the year and a good basis for further strong 20%+ earnings growth this year, similar to that reported in the last three years. Thus it still seems reasonable value on 14x or so this years earnings with a 3%+ yield. As a result of this growth and the rating I notice that it qualifies for the JIm Slater Zulu screen (low PEG) on Stockopedia which you can check out and get a two week free trial for here if that is of interest and you are not already a subscriber.