S & U
Website:
S & U
Index:
FTSE Small Cap
EPIC: SUS
Supersector:
Financial Services
Sector:
Financial Services
Subsector:
Consumer Finance
Market Cap:
£239.37M
Payout Frequency: Semi-Annual
S & U Dividend Analysis and Summary
Declared Dividend Details
- Final dividend: 45p per share (FY25: 40p)
- Total FY26 dividend: 115p per share (70p interim + 45p final), up +15% YoY (FY25: 100p)
- Ex-dividend date: 02/07/2026 (derived from record date)
- Record date: 03/07/2026
- Payment date: 24/07/2026 (subject to AGM approval on 24/06/2026)
- Earnings per share: 195.2p; dividend cover ˜ 1.70x (payout ratio ˜ 59%)
- Stated policy/guide: the Group has maintained a dividend cover ratio between 1.3x–2.3x
Context and Coverage
- Profit before tax improved to £31.8m (FY25: £24.0m); impairments fell sharply (£13.0m vs £35.6m), supporting higher earnings and dividend uplift.
- Net receivables grew to £496.8m with stronger collections and quality; however, operating cash flow was –£21.5m (growth-driven working capital outflow).
- Net borrowings increased to £241.8m; gearing rose to a high 97.1% (FY25: 80.8%). Additional £50m facilities secured; refinancing via securitised facilities targeted in Q2 to reduce funding costs and expand capacity.
- Dividend appears well covered by earnings and aligned with management’s stated cover range, but balance sheet leverage and funding dynamics are important considerations.
Sustainability and Growth Outlook
- Coverage: ~1.70x provides a reasonable buffer; management explicitly targets a cover band of 1.3x–2.3x.
- Earnings drivers: Improved credit outcomes and lower impairments at Advantage; record PBT at Aspen. These support current dividend levels if sustained.
- Cash/funding: Negative operating cash flow reflects loan book expansion rather than earnings stress; sustainability hinges on continued access to cost-effective funding (planned securitisation) and disciplined growth.
- Trajectory: DPS up +15% YoY. Further growth feasible if credit quality and profitability hold and funding costs are contained; otherwise, high gearing could temper increases.
Structural or Policy Factors to Watch
- Refinancing: Group engaged in a securitised funding exercise expected to complete in Q2; outcome will influence funding costs, growth capacity, and dividend headroom.
- Regulatory: FCA’s final rules on motor finance commission redress (30/03/2026). S&U has recognised a £1.79m provision for “high commission” cases; FOS referral costs are uncertain.
- Operational one-offs: A £53m debt sale of aged/written-off accounts aided clean-up and profit but is non-recurring.
- Governance/AGM: Final dividend subject to AGM approval on 24/06/2026.
Risks and Flags Relevant to Dividend Stability
- Leverage: Gearing at ~97% reduces financial flexibility; increases sensitivity to funding cost rises.
- Funding and rates: Dividend capacity depends on successful securitisation and stable credit markets; rising interest rates would pressure margins.
- Regulatory risk: Motor finance redress exposure beyond current provision (including potential FOS costs) remains a tail risk.
- Macro exposure: Management cites Middle East conflict-related uncertainty impacting energy costs, interest rates, and property demand—could affect Aspen volumes and Advantage arrears.
- Cash conversion: Growth-led working capital outflows may persist; sustained negative operating cash flow would raise the bar for maintaining/dividend growth without additional leverage.
Read more
S & U Annual Dividend Yield - 4.26%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 19/02/2026 |
06/03/2026 |
2nd Interim |
35.0000p |
GBX |
| 02/07/2026 |
24/07/2026 |
Final |
45.0000p |
GBX |
Total (Annual Dividends Per Share):
80.00p
Dividend Yield =
Annual Dividends Per Share (80.00p)
÷ Share Price (1880p)
= 4.26%
S & U Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 02/07/2026 |
24/07/2026 |
Final |
45.0000p |
GBX |
| 19/02/2026 |
06/03/2026 |
2nd Interim |
35.0000p |
GBX |
| 30/10/2025 |
21/11/2025 |
1st Interim |
35.00p |
GBX |
| 03/07/2025 |
25/07/2025 |
Final |
40.00p |
GBX |
| 16/02/2025 |
07/03/2025 |
2nd Interim |
30.00p |
GBX |
| 31/10/2024 |
22/11/2024 |
1st Interim |
30.00p |
GBX |
| 20/06/2024 |
12/07/2024 |
Final |
50.00p |
GBX |
| 15/02/2024 |
08/03/2024 |
2nd Interim |
35.00p |
GBX |
| 02/11/2023 |
24/11/2023 |
1st Interim |
35.00p |
GBX |
| 15/06/2023 |
07/07/2023 |
Final |
60.0p |
GBX |
| 16/02/2023 |
10/03/2023 |
2nd Interim |
38.00p |
GBX |
| 03/11/2022 |
25/11/2022 |
1st Interim |
35.00p |
GBX |
| 16/06/2022 |
08/07/2022 |
Final |
57.00p |
GBX |
| 17/02/2022 |
11/03/2022 |
2nd Interim |
36.00p |
GBX |
| 28/10/2021 |
19/11/2021 |
1st Interim |
33.00p |
GBX |
| 17/06/2021 |
09/07/2021 |
Final |
43.00p |
GBX |
| 18/02/2021 |
12/03/2021 |
2nd Interim |
25.00p |
GBX |
| 29/10/2020 |
20/11/2020 |
1st Interim |
22.00p |
GBX |
| 18/06/2020 |
10/07/2020 |
Final |
50.0p |
GBX |
| 20/02/2020 |
13/03/2020 |
2nd Interim |
36.00p |
GBX |
| 24/10/2019 |
15/11/2019 |
1st Interim |
34.00p |
GBX |
| 20/06/2019 |
12/07/2019 |
Final |
51.00p |
GBX |
| 21/02/2019 |
15/03/2019 |
2nd Interim |
35.00p |
GBX |
| 25/10/2018 |
16/11/2018 |
1st Interim |
32.00p |
GBX |
| 25/10/2018 |
16/11/2018 |
Interim |
32.00p |
GBX |
| 14/06/2018 |
06/07/2018 |
Final |
45.00p |
GBX |
| 22/02/2018 |
16/03/2018 |
2nd Interim |
32.00p |
GBX |
| 19/10/2017 |
10/11/2017 |
1st Interim |
28.00p |
GBX |
| 15/06/2017 |
07/07/2017 |
Final |
39.00p |
GBX |
| 23/02/2017 |
17/03/2017 |
2nd Interim |
28.00p |
GBX |
| 20/10/2016 |
11/11/2016 |
1st Interim |
24.00p |
GBX |
| 16/06/2016 |
08/07/2016 |
Final |
33.00p |
GBX |
| 25/02/2016 |
18/03/2016 |
2nd Interim |
23.00p |
GBX |
| 22/10/2015 |
12/11/2015 |
Special |
125.00p |
GBX |
| 22/10/2015 |
12/11/2015 |
1st Interim |
20.0p |
GBX |
| 18/06/2015 |
10/07/2015 |
Final |
30.00p |
GBX |
| 12/03/2015 |
10/04/2015 |
2nd Interim |
19.00p |
GBX |
| 16/10/2014 |
14/11/2014 |
1st Interim |
17.00p |
GBX |
| 18/06/2014 |
11/07/2014 |
Final |
24.00p |
GBX |
| 19/03/2014 |
11/04/2014 |
2nd Interim |
16.00p |
GBX |
| 16/10/2013 |
15/11/2013 |
1st Interim |
14.00p |
GBX |
| Year |
Interim |
Final |
Special |
Currency |
Total |
Change |
| 2024 |
|
50.000 |
|
GBX |
115.000 |
-13.530 |
| 2023 |
|
60.000 |
|
GBX |
133.000 |
3.900 |
| 2022 |
|
57.000 |
|
GBX |
128.000 |
26.730 |
| 2021 |
|
43.000 |
|
GBX |
101.000 |
-6.480 |
| 2020 |
|
50.000 |
|
GBX |
108.000 |
-10.000 |
| 2019 |
|
51.000 |
|
GBX |
120.000 |
-14.890 |
| 2018 |
32.000 |
45.000 |
|
GBX |
141.000 |
48.420 |
| 2017 |
|
39.000 |
|
GBX |
95.000 |
18.750 |
| 2016 |
|
33.000 |
|
GBX |
80.000 |
-58.760 |
| 2015 |
|
30.000 |
125.000 |
GBX |
194.000 |
240.350 |
| 2014 |
|
24.000 |
|
GBX |
57.000 |
307.140 |
| 2013 |
|
|
|
GBX |
14.000 |
|
S & U Dividend Calculator
S & U Dividend Growth
| Dividend Growth (1Y) |
15%
|
| Dividend CAGR (5Y) |
5.02%
|
| Years of Growth |
–
|
| Payout Ratio |
53.85%
|
| Buyback Yield |
–
|
| Shareholder Yield |
5.84%
|
| P/E Ratio (TTM) | 10.09 |
|---|
| Forward P/E | 9.05 |
|---|
| P/FCF | – |
|---|
| Earnings Yield | 9.91% |
|---|
| FCF Yield | -9.35% |
|---|
| ROE | 9.74% |
|---|
| ROCE | – |
|---|
| Profit Margin | 29.62% |
|---|
| Operating Margin | 39.74% |
|---|
| Gross Margin | 70.58% |
|---|