S&U in line, declares second interim divi

Home credit sales exceeded expectations in December and trading and profitability for this period was 'very satisfactory'.

Year-on-year sales at Advantage, the motor finance business which accounts for around 30% of group revenues, were buoyant in both December and January.

Advantage's extension of its product range into non-prime as well as sub-prime markets had been successful, with margins being maintained and the initial net cash return looking promising.

As a result, the group anticipated a resumption in transaction growth next year as both the used car market and the economy return to growth.

Group borrowings have reduced by 5m since the end of last year despite seasonal funding requirements. As a result the group has significant funds available for expansion.

In view of the government's tax increases from April and the group's strong treasury position, it has declared a second interim dividend of 15p per ordinary share. It expects to recommend a final dividend of not less than 8p for the year ending January 31.