Section 172 Statement

The Directors confirm they have considered their obligations under S172 of the Companies Act 2006 including their duty to promote the success of the Company and how they have engaged with the following key stakeholders in the business:

Our Customers

Advantage Finance focuses on;

1. making the customer the heart of our business; and

2. having respect for every customer and always treating customers fairly.

The outcomes of this customer engagement are reflected in high customer satisfaction ratings (Trustpilot), low levels of complaints and above all the Company's success over the last two decades.

Our Employees

Time of change and contrasting fortune often bring out the best in people and the magnificent way our staff throughout the company have adapted to the challenges of the past year, reflect the loyalty and "family ethos" at Advantage of which we have always been proud. Those colleagues who feel in need of further support and counselling are able to access mental health services.

We ensure that all staff receive appropriate initial training and regular re-training in the field and in areas of specialism. We encourage employees to gain professional qualifications where appropriate.

In addition to regular external management and specialist training, significant use is made of the Government's apprenticeship schemes. During the last business year, 5 employees completed a formal Apprenticeship, they range from a level 2 Apprenticeship in Customer Service to a level 5 qualification in Operations Management. We currently have one level 3 apprenticeship which is ongoing, with plans to add to this throughout the year for our existing employees and new recruitment.
We also supported staff to complete a number of professional qualifications during the year including AAT Level 3, APM Project Management, CiLex Legal Executive Foundation. Ongoing professional qualifications include CIPD in HR Practice Level 3 & 5, AAT Level 4 and CiLex Legal Executive Advanced.
During the last year the business also supported a Senior Management Development Programme for eight of our key managers in order to upskill and develop their management skills for the future of the business.

Our average length of service is 8 years, with 25% of staff having over 10 years' service. In order to better support our staff’s work life balance, over 30 requests for flexible working were submitted by staff and the vast majority of these were approved as requested. These include changes to working location, such as hybrid working, or a change to the number of hours worked, or their working pattern.

The FCA Regulatory regime is now centred on our duty to the Customer. All employees are required to demonstrate appropriate knowledge, skills and competence particularly in customer facing roles. During the year we have implemented a Training & Competence Framework, which sets out how employees are trained and measured within their roles, and monthly reviews take place to assess competency for all staff within these departments. Over 1400 individual training courses were completed by staff over the year, these include internally developed training and a wide range of externally provided through FLA, FCA, MBL Seminars, ACAS, .Net and SAF for example. Many more hours of Continued Professional Development were recorded by our employees which demonstrates their commitment to keeping their skills and knowledge up to date and relevant.
Monthly competence reviews highlight areas of training needs and development for all employees. Advantage Finance has also been accredited Silver Investor in People, and in 2024 was also awarded with a Standard accreditation for Investors in Wellbeing.

Our Business Partners

Advantage Finance continuously seeks to nurture and improve key business relationships with our key introducing brokers, dealers and key suppliers.

The strength of our key business relationships is reflected in the positive feedback and high retention rates for our partners and in the steady, sustainable and successful growth of the Company in the past two decades.

Our Investors and Funding Partners

We are 100% owned by our parent Company S&U plc and funding is organised on a Group basis. S&U's significant family management shareholdings means an identity of interest between shareholders and the management of the Group and together with help from trusted advisers, the Group maintains close relationships with investors, analysts and also with long term funding partners. The outcomes of this funder engagement help the strong balance sheet and treasury position of the Group and Advantage.

Our regulators and other statutory bodies

Advantage Finance has a strong compliance culture which is overseen by management and the Audit Committee.

During the year, RSM have continued to provide internal audit services for Advantage Finance. An agreement, overseen by the Audit Committee, has been entered into with RSM who will be responsible for regular internal audits of Advantage's Regulatory Controls, Customer Compliance, Risk Management and Governance Policy and Procedures.

Our Community and Our Environment

The Company does not exist in a vacuum. Our success depends upon our understanding of the customers we serve. Where this may not be the case, we have well established policies for any who may wish to complain, routed to our Complaints Department. In year to 31 January 2025, 391 out of 464 (84%) complaints were decided by the Financial Ombudsman Service in Advantage's favour (year to 31 January 2024: 357 out of 424 or 83%) and these levels of favourable complaint adjudications for Advantage represent the highest level versus peers in the non-prime motor finance sector.

Both for commercial and climate change reasons, the Board monitors the type, age and stated emissions of the vehicles we finance. The proportion of fully electric vehicles, principally on the grounds of their significant cost, is at present negligible.

Advantage continued supporting their local charities by continuing to be a Corporate Partner of Women's Aid. Many items were donated to their Christmas Collection drive and Advantage staff also attended a fund-raising quiz night hosted by them. During the year, the staff and the business also supported Macmillan, Save The Children, Humberston Hydrotherapy Pool and St Andrews Hospice.

Health and Safety and Diversity Policy

Advantage Finance takes its responsibilities towards the health, safety and good working environment of its employees very seriously. However, in the finance field it is not engaged in the kind of processes which compromise health and safety for either our staff or our visitors. Nevertheless, it seeks to provide a congenial and productive working environment.

It therefore goes without saying that in a Company where family values are so prized, and where staff turnover is so low, that workers are always treated fairly without any form of discrimination. Recruitment and promotion decisions, whilst reflecting the social and racial makeup of the areas in which we operate, are always based on ability and aptitude, not according to any racial or gender stereotypes.