LONDON (ShareCast) - Consumer credit and motor finance provider S&U saw profits ease slightly in what the chairman described as “amongst the most turbulent” market conditions in his thirty years in the business.

Pre-tax profits dipped to £8.6m in the year to 31 January 2008 from £8.9m a year earlier on revenue that grew from £42.8m to £46m.

Advantage Finance, the group’s motor finance subsidiary, produced record results and notched up record customer numbers.

The S&U, the group’s home credit subsidiary, saw a decline in profits due principally to a £0.4m shortfall at its Wilson Tupholme, which under-estimated the credit risk and operational costs associated with the previous year’s debt acquisitions, and also over-estimated the trading potential of the customers it had required.

The management team at Wilson Tupholme has been overhauled while the business has been downsized, with its operations integrated into the other parts of the Home Credit business.

The group said that changes in the home credit and motor finance industries’ regulations will increase costs but will also created acquisition opportunities for the group.

The company has maintained the final dividend at 23p, and the total dividend for the year is also unchanged at 32p.

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