Shares in the niche finance provider S&U surged as trading commenced on Tuesday, following the company's announcement of a "resurgence in profitability."
The firm's shares climbed over three per cent in the morning session to 1,940, as reported by .
This increase was spurred by an optimistic trading update from the lender, which foresees increased momentum for the latter half of the year.
S&U credited the Supreme Court's decision on motor finance for providing greater clarity and stability to its operations.
The company's vehicle financing division, Advantage, has reportedly "outpaced" the national market recovery, which saw a six per cent increase in volumes.
In the latter half of 2024, S&U openly criticized the Financial Conduct Authority, attributing the regulator's stringent oversight to the "uninspiring performance" of its motor finance sector.
Following the º£½ÇÊÓƵ's apex court granting a partial victory to lenders in the car finance dispute, S&U's chairman Anthony Coombs celebrated the "common sense" outcome.
Speaking to City AM, Coombs noted a "definitely been a change of tone and tenor" at the Financial Conduct Authority, which he hopes will continue as it benefits both the government and the economy.
On Tuesday, Coombs expressed optimism, stating: "The skies are now brighter for a return to steady sustainable growth than at any time since the pandemic."
S&U praises early Mansion House wins
S&U also acknowledged the initial positive impact of Rachel Reeves' Mansion House address in its Tuesday trading update.
The Chancellor adopted a confident stance regarding her deregulation objectives, encouraging watchdogs to "take up the call" of regulation for growth rather than "bend to the temptation of excessive caution".
Reeves described regulation as a "boot on the neck of businesses" – a remark that has allegedly caused friction with the Bank of England but received a warm reception from S&U.
S&U stated that should this approach be "persisted in, this will provide the consistency and certainty for which we have long called and will attract capital investment into motor finance thus sharpening competition and benefiting customers."
Nevertheless, the chief executive has also cautioned about the dangers of an additional bank levy.
Earlier this month, Coombs informed City AM: "Given the fragile nature of consumer confidence, still in negative territory, massively negative territory. My view is [Reeves] must step very carefully, and she's got to avoid new taxes, if possible."
"No doubt about that".
The chief executives of the º£½ÇÊÓƵ's Big Four banks – Lloyds, NatWest, Barclays and HSBC – warned the Treasury against targeting lenders for a cash grab last month.
This followed suggestions from monetary reform think tank Positive Money for a sector increase of £11.3bn on the leading banks to fund recent policy reversals by the Labour government.
