Shares of S&U plc (SUS.L) were losing around 8 percent in the morning trading on London Stock Exchange after the specialist Motor and Property Finance financier Friday said it expects group profit before tax for the year ended January 31 to finish between 10 percent and 15 percent below consensus expectations of around 38 million pounds.
Further, the company proposed second interim dividend of 35 pence per share, down from last year's 38 pence, payable on March 8 to shareholders on the register on February 16.
In its trading update for the period from its statement of December 12 to the year end on January 31, 2024, the company said the headwinds experienced earlier since S&U's last trading statement persists.
S&U's previous progress and profitability reflected poor consumer confidence, continuing high interest rates, cost of living pressures and regulation.
"The intemperate economic climate in Britain surrounding these unfortunately persists. Whilst we continue to invest in the receivables which drive our future profits, we do so with caution," the company said.
These trends, particularly at Advantage, have largely been confined to the last quarter, but its likely effect on collections will have a temporary impact on profitability.
Anthony Coombs, S&U Chairman, said, "Faced with an array of challenges ranging from weak consumer confidence, cost of living pressures, funding costs and regulatory activity, 2023 has not been a vintage year for either S&U or the specialist financial services sector. Given the underlying strength, resilience and expertise of our Group, I fully expect a resumption of S&U's habitual and robust profit growth in the years to come."
S&U's full year results will be announced on April 9.
In London, S&U shares were trading at 1,935 pence, down 7.86 percent.
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