Slide 1: Ready for the Rebound: Our Full Year Results to 31 January 2025
Ready for the Rebound Our Full Year Results to 31 January 2025
Slide 2: Today's speakers
www.suplc.co.uk Today’s speakers Anthony Coombs Graham Coombs Chris Redford Karl Werner Ed Ahrens Chris Freckelton Chairman Deputy Chairman Group Finance Director CEO Advantage Finance CEO Aspen Bridging Chief Financial Officer 1
Slide 3: Our wonderful customers and staff
www.suplc.co.uk Our wonderful customers and staff Thank you Simply amazing Jennifer made me feel at ease “Jason dealt with my enquiry with empathy. “I have been using advantage finance for a while “Jennifer made me feel at ease and understood now and towards the end of last year hit some my circumst
Slide 4: Introduction
www.suplc.co.uk Introduction “Advantage, our resilient and established motor financier has undoubtedly had a difficult year owing to legal and regulatory challenges. However, these are now almost all resolved; hence, we view the future with optimism and recall an old American business adage: “If you
Slide 5: Highlights for the year to 31 January 2025
www.suplc.co.uk Highlights for the year to 31 January 2025 S&U ⚫ Revenue stable at £115.6m (2024: £115.4m) ⚫ Group profit before tax (“PBT”) £24.0m (2024: £33.6m) - higher motor impairment charges ⚫ Group impairment charge of £35.6m (2024: £24.2m) reflecting increased motor arrears ⚫ Group net recei
Slide 6: Group financials
www.suplc.co.uk Group financials Income statement – full year to January 2025 Revenue increased by 38% in Aspen but reduced by 6% in Advantage due to cautious £m Jan 25 Jan 24 Change % reduction in receivables, price competition Revenue 115.6 115.4 0% and increase in lower-yielding stage 3 loans Imp
Slide 7: Group financials: balance sheet
www.suplc.co.uk Group financials Group balance sheet – 31 January 2025 £m Jan 25 Jan 24 Change % Comment Fixed assets and right of use assets 2.5 2.3 Includes additional office unit purchased £0.5m Amounts receivable motor finance 283.6 332.5 -15% Book reflects cautious lending/increased provs Amoun
Slide 8: Group financials: cash flow
www.suplc.co.uk Group financials Cash flow – full year to 31 January 2025 Group Cash Flow Advantage Cash Flow Aspen Cash Flow ⚫ £32.1m cash inflow reflecting cautious motor lending, ⚫ Advances 38% lower, driven by cautious underwriting ⚫ Gross advances 24% higher than last year at good partly offset
Slide 9: Group financials: treasury and funding
www.suplc.co.uk Group financials Treasury and funding ⚫ 3-year club £230m revolving credit facility maturity extended by one year to May 2027 during the year as planned – can be extended by a further one year next year if all parties consent ⚫ Committed facilities now total £280m. These comprise 2 x
Slide 10: Advantage Finance Business Update
www.suplc.co.uk Advantage Finance Business Update
Slide 11: New business and the market
www.suplc.co.uk New business and the market • New business lending declines following regulatory review of lending (affordability) during Q2, further impacted by a depressed market environment (non-prime market shrinks circa 4% Q3 and Q4) • Notable pivot to higher quality business with higher/best t
Slide 12: Collections quality
www.suplc.co.uk Collections quality Budget % of Due below expectations as AFL apply an abundance of caution during a Live repayment performance below budget from Q2, recovery evident from Q4 challenging regulatory environment, recovering strongly by year-end Bad Debts temporarily accelerate followin
Slide 13: Regulatory update
www.suplc.co.uk Regulatory update Maintaining class leading complaints performance (last 6 months) Firm Name New Cases Uphold Rate Regulatory status overview Billing Finance 92 14% Advantage Finance Ltd 454 15% Borrowers in Financial Difficulty All workstreams have been completed and the Go Car Cred
Slide 14: 2024 - A year of investment, improvement & recovery
www.suplc.co.uk 2024 - A year of investment, improvement & recovery Activity Timeline Making our renowned service for customers even better • Our new customer self-serve portal achieves 30% customer engagement in its first 6 Project Oak was our 12-month project to embrace the regulatory weeks and en
Slide 15: 2025 developments and opportunities
www.suplc.co.uk 2025 developments and opportunities • A year of sustainable growth and investment to improve performance • Notable projects to enhance credit risk and dynamic pricing capabilities to enhance returns and profitability • Considered and cautious moves into adjacent distribution channels
Slide 16: Our quality loan book
www.suplc.co.uk Our quality loan book Year to Year to Year to Year to Year to Loan profile Jan 21 Jan 22 Jan 23 Jan 24 Jan 25 Number of loans 15,589 19,747 23,922 22,565 12,703 Average advance £6,581 £7,138 £7,799 £8,158 £8,609 Cost of sales £872 £874 £907 £961 £1,107 Interest rate flat per annum 17
Slide 17: First repayment quality
www.suplc.co.uk First repayment quality ⚫ Strong historical correlation between early repayments and end outcomes ⚫ Temporary reduction in first payment success occurred both at the start of the pandemic and during the recent period of regulatory engagement – now starting to recover 16
Slide 18: Repayments % of upfront investment
www.suplc.co.uk Repayments % of upfront investment 17
Slide 19: Receivables
www.suplc.co.uk Receivables Position at end January 2025 Position at end January 2024 Original contract arrears Volume of accounts Percentage of live receivable Volume of accounts Percentage of live receivable Up to Date 38,705 64.51% 47,622 74.00% 0.01 – 1 mthly payments 5,445 9.34% 6,032 9.46% 1.0
Slide 20: Aspen Bridging
www.suplc.co.uk Aspen Bridging
Slide 21: Summary
www.suplc.co.uk Summary ⚫ Record PBT increased 50% to £7.2m against £4.8m ⚫ Year trends showed positive progress with steady in FY 24 underpinned by continuing good quality on growth in new loans and consistent repayments, an bigger book increase in housing market transactions with a decreasing cost
Slide 22: Our quality loan book
www.suplc.co.uk Our quality loan book Year to Year to Year to Year to Year to Year to Average loan profile Jan 20 Jan 21 Jan 22 Jan 23 Jan 24 Jan 25 Number of new loans 57 80 111 148 164 191 Gross advance £539k £543k £618k £905k £881k £940k Cost of sales % of gross 2.0 1.6 1.6 1.5 1.3 1.1 advance Av
Slide 23: Bridging market environment
www.suplc.co.uk Bridging market environment ⚫ Bridging market according to the BDLA: The Bridging & Development Lenders Association (BDLA) reported in February 2025 record member £ loan balances breaking through the 10bn loan book level and with the pipeline of new business up +3.9% in the fourth qu
Slide 24: Focus for 2025/26
www.suplc.co.uk Focus for 2025/26 ⚫ Credit quality and experienced property developers: ⚫ IT systems: 30 projects identified to improve our Maintaining focus on both the credit quality of borrowers automation, speed of delivery and operating procedures using top credit tiers, strong project history,
Slide 25: Our future
www.suplc.co.uk Our future Opportunities abound to consolidate upon our long-established experience – cautiously optimistic for future prospects ⚫ Significant opportunities for growth remain as we invest in improved capabilities and competencies ⚫ A full stack of innovations and improvements are pla
Slide 26: Appendices
www.suplc.co.uk Appendices 25
Slide 27: Our business
www.suplc.co.uk Our business ⚫ Used car finance on hire purchase – 90% sourced through brokers – 5% refinances for previous customers – 5% direct from dealers ⚫ Advantage have now transacted over 275,000 loans since business started in 1999 ⚫ Deals underwritten and collected centrally – direct debit
Slide 28: Our loyal customers
www.suplc.co.uk Our loyal customers CASE STUDY Miss V is living in Daventry where she rents her council home and has been there for 8 months. She is employed as a Supervisor for a home care provider and has been with this firm for over 3 years and currently takes home £2750 each month. We received a
Slide 29: Our loyal customers
www.suplc.co.uk Our loyal customers CASE STUDY Mr F is a 43-year-old living in West Yorkshire. He is married with one dependent, living in a privately rented property. He is employed as a Business Development and currently takes home £3,476 each month. Mr F was an existing customer for Advantage whe
Slide 30: Our business
www.suplc.co.uk Our business ⚫ Aspen started trading in February 2017 and provide a “fast, flexible, friendly and fair” service to customers with property bridging loan requirements ⚫ 872 secured property bridging loan facilities have been provided to customers to date with an average gross loan fac
Slide 31: Case study
www.suplc.co.uk Case study 75% LTV, Over a 10-month term with a rate of 0.94% pcm Aspen’s Desk-top Valuation product enabled the swift refinancing for a borrower at the end of a multi-unit project in Swansea, South Wales. The borrower, an investor that has been steadily investing in property over th
Slide 32: Case study
www.suplc.co.uk Case study 70% LTV, Over 10 months on a Stepped Rate Aspen stepped in to refinance 35 units within a 41-unit block in Manchester, allowing the borrower to refinance and reduce the charges from their previous lender and provide some valuable additional time to sell some units. The bor
Slide 33: Our five year record
www.suplc.co.uk Our five year record Two Pandemic Years Year to Year to Year to Year to Year to £m Jan 21 Jan 22 Jan 23 Jan 24 Jan 25 Revenue 83.8 87.9 102.7 115.4 115.6 Cost of Sales -14.3 -18.8 -23.7 -22.8 -16.4 Impairment -36.7 -4.1 -13.9 -24.2 -35.6 Admin Expenses -11.1 -14.2 -16.2 -19.8 -18.8 F
Slide 34: Disclaimer
www.suplc.co.uk Disclaimer This document and its contents do not constitute or form part of a prospectus or any offer or invitation to sell or to issue, or any solicitation of any offer to buy or subscribe for any ordinary shares in the Company nor shall it or any part of it or the fact of its distr