Lender set to launch bridging arm

In an interim statement, Birmingham-based S&U PLC revealed that record profitability during the first half of 2016 has enabled it to pilot a new venture in the property bridging sector.

The expansion follows a £15m increase in the group’s committed funding facilities, bringing its total to £85m.

Anthony Coombs, chairman of S&U, said: “A further half-year’s successful trading and a robust financial position provide a solid springboard for sustained growth in the year ahead.”

The report added: “While we see significant potential in this specialist sector, we will of course pilot bridging finance with our usual caution and exacting standards.”

The group is not the only business to have looked at the bridging sector for expansion this year.

In July, Freedom Finance also announced plans to launch a new bridging arm.

Last month, luxury asset lender Borro received permission from the Financial Conduct Authority to offer regulated bridging loans.

In addition to its new facilities, S&U reported a 35% year-on-year rise in profit before taxation to £11.9m during H1 2016.

Meanwhile, the group’s motor finance arm Advantage Finance recorded a 54% increase in lending advances.

Grimsby-based Advantage also witnessed a 58% rise in motor finance applications during H1 2016, while reaching its 100,000^th-deal milestone.

S&U used a proportion of the new facilities to invest a further £23.3m into Advantage on the back of this growth.