Market's view on S & U
Published on April 2024
- A dividend cut by the company was anticipated by the market, and some stock watchers consider the current levels a good opportunity for adding more shares.
- SUS does not pay commissions, which separates them from other lenders and might shield them from certain market reactions.
- Concerns were raised about the potential for SUS to stop high-risk car lending due to regulatory pressures, which could drive customers towards unregulated lenders or inadequate transport options.
- Despite broad market reactions to sector-specific news, SUS maintains a clear stance on not being involved in Discretionary Commission Arrangements, which may protect it from related regulatory scrutiny.
- Concerns are mentioned about the potential lengthy and costly regulatory interactions for SUS, specifically regarding their borrower management and collection processes.
- The economic environment and government policies are criticised for not supporting entrepreneurial growth, with high taxation and regulation slowing down business operations.
- Some uncertainty and worry exist around the impact of high interest rates on the company’s profits and borrower defaults, particularly in property lending.
- The long-standing performance and management of Advantage, a subsidiary of S&U, is praised, reflecting confidence in its stability and compliance during various economic conditions.