Subprime lender Advantage Finance and parent
company S&U have both recorded positive growth for the first
half of 2012.

Motor finance lending at Advantage was up 23%
year-on-year, with the company writing
approximately 3,000 contracts in the first half of the year,

up from 2,500 in the first half of 2011
. The worth of an
average contract remained at around £5,000. The company’s capital
book, after provisions, stood at just under £60m.

Keith Charlton, director of Advantage, told
Motor Finance the company had continued to write business
in a sector which has seen a reduction in the number of other
lenders despite continued customer appetite for finance. “We’re
experiencing quite a healthy demand for our products,” said
Charlton. “We’ve found ourselves in a reasonably healthy
position.”


An interim statement from S&U in May
this year praised the
group’s car finance operation and Charlton commented after the
recent results that Advantage was “looking to make a significant
contribution to the group”.

Meanwhile, the home credit arm of S&U,
approximately twice the size of Advantage by turnover and share of
group revenue at the start of the year, recorded 3% growth in
customers and 7% growth in collections. Overall,
financial leverage for the group dropped three percentage points
since last year to below 35%.

richard.brown@vrlfinancialnews.com

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