Everything's rosy in the S & U gardenDerek Coombs and family - £44m (£40m)
Progress continues at S & U plc, not least on the shares front.
In 1999 you might have been able to purchase the company's shares for 292p. In June 2004, you would have had to pay 522p and at the time of writing the shares stand at 547.5p.
In the financial year ending in 2004, the group reported profits up from £7.846 million to £9.037 million, with net assets rising from £35 million to £38 million.
The results for the half-year ending July 31 were even more encouraging with profits up from £4.206 million to £4.914 million, a rise of 16 per cent on the same period the previous year.
The board announced an increase in the interim dividend from 8p to 9p, a welcome increase for shareholders, of whom a large percentage is called Coombs. Payments made in the full year to chairman Derek Coombs of £238,000, managing director Anthony Coombs, £195,000 and Graham Coombs, £157,000, were buoyed up by dividends paid of £3,558,000 of which some 30 per cent would have gone to the
Based in Solihull, S&U plc is the one of the UK's top consumer and motor finance providers, employing 700 people across the country servicing around 130,000 customers at any one time.
Founded in 1938 and floated on the Stock Exchange in 1961, the company has "solid performer" writ large throughout.
The company is particularly proud of the progress made since its launch in July 1999 of Advantage Finance (nothing to do with Advantage West Midlands, so no reason to mark it down).
This division made a very encouraging increase in pre-tax profits in the latest half year, from £768,000 to £1.096 million.
Advantage was said to be trading ahead of budget and looks set to contribute significantly to the next full year results.
The family also has a large stake in the Kings Norton-based houseware and engineering firm Metalrax. John Crabtree, former senior partner at Birmingham law firm Wragge & Co, took over as non-executive chairman from Eric Moore who stepped down in May 2004 after 40 years with the firm.
In September, Metalrax which employs around 1,350 of its 1,800 workforce in the Midlands, announced a slight dip in first half profit to £5.23 million on sales of £50.58 million.
The company has now disposed of its remaining interests in The Texas Group Inc, and profits resulting from the withdrawal from the United States will included in the next full year results.
During 2004, Metalrax bought out Premier Stairways, another Kings Norton-based company, which is a specialist supplier of high-quality architectural metalwork to the construction industry.
In the year to June 2003, Premier Stairways made a pre-tax profit before dividend of £316,000 on turnover of £2.459 million.
Metalrax paid an initial consideration of around £1.330 million and will pay a maximum further £500,000 depending on profits during the first two years post-acquisition.
The mood looks positive, and the results are not far behind, so we are happy to uprate the Coombs family to £44 million. S & U based in Solihull now and making a fortune. Len.