Independent lender Advantage Finance’s gross receivables reached £200m for the first time in H1 2015, parent company S&U revealed in its trading update for the six months to 31 July 2015.
Transaction volumes cumulatively for the period were slightly down compared to the first half of 2014, though the company said levels had picked up recently.
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According to the trading update, Advantage said it had improved its underwriting capabilities, and that this had provided a platform for ‘record levels’ of collections and customer service. "This has and is being reflected in profitability," the update said.
S&U’s home credit business, Loansathome4u, saw sales slide 9% year-on-year, and profits also drop.
In July S&U revealed it had agreed to sell Loansathome4U for £82.5m, pending regulatory approval, and planned to invest £34m of that cash into Advantage.
In the latest trading update, S&U revealed that the transaction has been completed, and again reiterated that: "The net proceeds of the sale will firstly be reinvested into the accelerated growth of Advantage Finance. Net proceeds will also finance the development of a new Advantage SME vehicle lending product and allow an exceptional distribution to shareholders; further announcements will follow in due course.
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By GlobalData"Although temporarily and inevitably earnings dilutive, the disposal will significantly enhance the Group’s net asset position and enable it to focus on higher growth areas of specialist finance."
