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EDISON INVESTMENT RESEARCH LIMITED Edison Investment Research Limited: S&U (SUS): Ready to meet unlocked demand

Directive transparence : information réglementée

09/04/2021 08:00

Edison Investment Research Limited
Edison Investment Research Limited: S&U (SUS): Ready to meet unlocked demand

09-Apr-2021 / 07:00 GMT/BST


 

London, UK, 9 April 2021

 

S&U (SUS): Ready to meet unlocked demand

S&U's results for FY21 were significantly affected by the pandemic, but a near-term bounce back in demand for motor finance is in prospect as dealer showrooms reopen and consumer confidence improves. Underpinning the longer-term outlook for Advantage has been continued work to adapt and improve the business. Aspen Bridging also looks set to contribute to growth with loan-book growth reviving in the second half of FY21 and likely to see further significant growth in the next two years.

The shares trade on a price to book ratio of c 1.5x, a prospective P/E that falls to 10.6x for FY23 and offers a yield of 4%. Using an ROE/COE model, the current share price implies a return on equity (ROE) of 14%, which is above our current 13% estimate for FY23. However, that year will probably not have seen the full effect of the potential recovery and the pre-COVID-19 five-year average ROE was over 16%.


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About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached - across institutions, family offices, wealth managers and retail investors - Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings.

Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg and Sydney.

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Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

For more information, please contact Edison:

Andrew Mitchell +44 (0)20 3681 2500 financials@edisongroup.com

Martyn King ++44 (0)20 3077 5745 financials@edisongroup.com

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1182375  09-Apr-2021 

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