Stock prices of S&U surge following bank's prediction of a profit rebound
In the past few weeks, the UK's specialist lender, S&U, has experienced a significant boost in its motor finance business. This positive momentum is largely attributed to the UK Supreme Court's recent motor finance ruling and the Chancellor's Mansion House speech.
The Supreme Court's decision has brought greater legal certainty and regulatory clarity to S&U's operations, largely overturning previous court judgments that had threatened the motor finance commission model used by car dealers and brokers. This newfound certainty has added confidence and stability to the markets S&U serves, attracting investment and supporting sustainable growth.
S&U's motor finance arm, Advantage Finance, has outperformed the wider used car market. In the first half of 2025, lending reached £70.6 million, exceeding budget expectations. Repayment rates have also recovered strongly to nearly 90%, improving cash flow and financial stability.
The Supreme Court ruling has also limited broader legal risks across consumer finance, with S&U anticipating minimal impact from potential compensation claims since it has not offered discretionary commission deals. S&U's Chair, Anthony Coombs, stated that "the skies are now brighter for a return to steady sustainable growth than at any time since the pandemic," signifying confidence in the ongoing recovery and resilience of the business.
Analysts and brokers, such as Peel Hunt, have upgraded S&U’s shares, reflecting optimism about improved profitability and sustainable growth across both motor finance and property bridging divisions. S&U expects funding needs to grow and is addressing this proactively through its CFO and finance team, aligning financial resources with anticipated business expansion.
The positive market signals, alongside supportive government commentary, lend a favourable near- and mid-term outlook for S&U’s motor finance business. Strong operational performance and improved investor confidence underpin this view.
Anthony Coombs, S&U's chair, has hailed the "common sense" verdict of the Supreme Court and believes that if the Chancellor's stance is persisted, it will provide the consistency and certainty for which they have long called, attracting capital investment into motor finance and benefiting customers.
[1] The Financial Times [2] City AM [3] Reuters [4] The Guardian
- The Supreme Court's decision on motor finance has brought greater financial certainty to S&U's operations, attracting investment and supporting sustainable growth, according to reports in The Financial Times and City AM.
- The positive market signals for S&U's motor finance business extend beyond the company, with analysts like Peel Hunt predicting improved profitability and sustainable growth for the consumer finance industry, as reported by Reuters.
- The Guardian highlights that S&U's Chair, Anthony Coombs, believes that the Chancellor's stance, if persisted, will provide the consistency and certainty for which they have long called, attracting capital investment into motor finance and benefiting customers.
- The improved investor confidence in S&U, fueled by its strong operational performance and the Supreme Court's motor finance ruling, is expected to positively impact the broader economy and banking markets, as suggested by reports in The Financial Times, City AM, Reuters, and The Guardian.
