Advantage growth drives S&U profit
Advantage Finance live customer numbers stood at 32,500 on 31 January, 32% more than the same date in 2015, the company revealed.
Parent company S&U said this reflected an increased investment made into the subprime lender in 2015. Last year, S&U revealed Advantage was in line for millions of pounds worth of investment following the sale of another business.
The company said this led to refinements in the motor finance company’s underwriting systems, which has led to more opportunities for higher margin business. As a result monthly collections were approaching £7m by the end of January.
Parent company S&U said it was continuing to examine potential acquisition and start up opportunities, yet noted: “The recent reverses in stock market values have confirmed our impression of unrealistic pricing last year and may lead to better value in the coming months.”
Anthony Coombs, chairman of S&U said: “Although the slight rise in real incomes in Britain over the past year has led to greater consumer confidence, particularly in the car market, current economic uncertainties will place a premium on those finance companies possessing the best underwriting systems and highest debt quality.”