S & U

S & U Dividend Analysis and Summary

• Type: Second interim dividend
• Amount: 35p per share (vs 30p in 2025; +16.7% year-on-year)
• Ex-dividend date: 19/02/2026 (derived from record date)
• Record date: 20/02/2026
• Payment date: 06/03/2026
• Currency: GBP
• Policy: Company reiterates a “consistent dividend policy” aligned with shareholders and broader stakeholders, underpinned by trading performance and growth prospects.

• Trading momentum: Group net receivables up to c.£495m (from £436m). Advantage loan advances up ~65% YoY; collections at 93% of due (vs 87%); improving credit quality and margins.
• Aspen performance: Record year with £212m of lending, capital receivables c.£188m, blended yields above budget, and minimal historic capital loss (~£150k on £790m written).
• Cash generation supports payouts: Record recoveries at Aspen (£188m) and £3.4m proceeds from sale of long-term written-off Advantage accounts bolster cash flow.
• Balance sheet and funding: Group borrowing steady at £241m; RCF expanded from £230m to £280m with plans for longer-term facilities to finance growth over five years. This enhances liquidity to fund both expansion and dividends, though implies rising leverage and interest costs to monitor.
• Trajectory: The uplift to 35p indicates continued commitment to progressive distributions. With operational momentum and improved collections/margins, the second interim appears well-supported ahead of April results, subject to regulatory outcomes and funding costs.