S&Uwww.suplc.co.uk TICKER: SUS EXCHANGE: L
S & U is a specialist provider of credit, mostly to sub-prime borrowers. The larger part of its business is Home Credit, where its original business of selling goods on credit to consumers has long been eclipsed by unsecured sort-term cash loans with weekly repayments (usually over 14, 20 or 37 weeks) collected from the customers' home. More recently it has diversified into medium-term secured lending on motor vehicles under the name Advantage Finance. Most Loansathome4u customers would be normally be unable to obtain credit from a high street bank and a large majority of loans are to satisfied customers who have previously borrowed and repaid their loans. Vehicle loans are larger and for a much longer period so there are fewer repeat customers and underwriting has to be more stringent. Both divisions are profitable and cash-generating with bad debts being less of a burden that the costs of administering relatively small loans.
Foreign buyers gorging on UK stocks
Document can be downloaded here: UK plc ‘going for a song’
Being a shareholder in a company that receives a juicy takeover offer is a marvellous feeling. Something that many fortunate investors have experienced over the past 3 years. Thanks to a spate of M&A bids by deep pocketed overseas buyers – partly triggered by the June 2016 Brexit result, which sent the £ tumbling and adversely affected the FTSE.
Consequently today, given this trend is unlikely to end anytime soon, we’ve highlighted 30 possible acquisition ideas in the attached research paper. Spilt equally between large and smallcap stocks – covering a broad selection of industries.
What’s more we believe most of these businesses are underpinned by strong fundamentals and substantial upside in the event of predatory interest.
According to Factset Mergerstat/BVR, the average bid premium paid for such deals between 2004-14 was 30% – with the figure trending upwards since the global financial crisis.
Happy investing. Published 27th August 2019