REG - Distribution Finance - Half Year Trading Update

Distribution Finance Capital HoldingsAnnouncement

08/07/2025 07:30

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RNS Number : 1458Q  Distribution Finance Cap. Hldgs PLC  08 July 2025

8 July 2025

 

Distribution Finance Capital Holdings plc

("DF Capital" or the "Company" together with its subsidiaries the "Group")

 

 

Half Year Trading Update

Strong H1 performance and launch of new strategic lending offering supports
multi-product ambition.

 

Distribution Finance Capital Holdings plc, a specialist bank providing
financial solutions that support dealers and manufacturers across the UK, is
pleased to provide a trading update for the six months ended 30 June 2025 (the
"period").

Performance

·    The Group is pleased to report strong trading through the period. New
loan origination reached a record high, exceeding £828m, up 16.8% on the
prior year (H1 2024: £709m) through market share growth in core inventory
finance sectors as well as the benefit of new lending product adjacencies.

·    The Group's loan book has continued to grow throughout the second
quarter, marginally ahead of expectations, reaching £728m at the period end,
up 20.7% on the prior year (H1 2024: £603m).

·    Stock days, being the average age of loans outstanding, has remained
well within sector tolerances at 128 days (31 December 2024: 140 days) at the
period end.

·    The Group now supports 97 manufacturer partners and its dealer
customers total 1,491 (H1 2024: 1,250).  Credit lines reached a record £1.4
bn, up 27.3% on prior year (H1 2024: £1.1bn). This provides a valuable base
to support the Group's multi-product strategy.

·    Overdue accounts have continued to perform in line with expectations
through the period, reflecting a continued disciplined approach to scaling
lending and a robust focus on credit control. Despite growing customer
numbers, in aggregate, 38 dealers had arrears one day past due (H1 2024: 20),
representing 2.5% of total dealers, this includes 30 cases in legal recovery
where appropriate credit loss provisions have been made in line with the
anticipated level of financial recovery. The Group's total arrears balance
represented 0.9% (H1 2024: 0.5%) of its entire loan book.

·    The Group has continued to benefit from a very strong net interest
margin performance throughout the period and operating expenses have been well
managed despite investment into building new products and services.

·    The Group enters the second half with continued momentum, and the
Board is confident of achieving full year results in-line with market
expectations.

Launch of asset finance

Following the Group's organic build of an asset finance lending capability and
the previously reported approval to conduct consumer lending obtained from the
Financial Conduct Authority, the Group is pleased to report lending has
commenced and first loans have been made. This capability, initially directed
towards the Group's motorhome and caravan dealer relationships, unlocks entry
into significantly larger addressable markets than the Group's current
offering, supporting the sales of its existing dealers and manufacturers to
end-user consumers. The Group is pleased to report that it already has over 50
dealers signed up to originate lending, demonstrating the significant interest
in these new products and services, as well as the cross-selling potential
within its existing dealer network. The Group expects a controlled roll-out of
lending in these products over the remainer of 2025 before accelerating in
2026.

Notice of results

The Company will provide a further update when it announces its interim
results for the six months ended 30 June 2025 in September 2025.

 

Carl D'Ammassa, Chief Executive, commented: "We continue to demonstrate our
ability to grow loan origination whilst supporting our dealer and
manufacturers with more products and services than ever before. Our continued
growth is underpinned by a highly digitised and scalable customer journey,
enhanced by consistently top-quality support services which resonates strongly
with our borrower and retail depositor base.

 

"The launch of our asset finance product marks an important milestone for the
Group and delivers on our long-held ambition to be a multi-product lender.
Given these products tap into markets which are significantly larger than our
core inventory finance product, it supports our medium-term goal of hitting a
loan book of £1.3bn by the end of FY28 and deliver mid-teens return on
equity. This, in addition to the Group's performance year to date, leaves the
Board confident of achieving market expectations for the full year."

 

 

For further information contact:

 Distribution Finance Capital Holdings plc
 Carl D'Ammassa - Chief Executive Officer                                  +44 (0) 161 413 3391
 Kam Bansil - Head of Investor Relations                                   +44 (0) 7779 229508
 http://www.dfcapital-investors.com (http://www.dfcapital-investors.com/)

 Panmure Liberum Limited (Nomad and Broker)                                +44 (0) 203 100 2000
 Chris Clarke

 William King

 Gaya Bhatt

 Alma Strategic Communications                                             +44 (0) 203 405 0235
 Josh Royston
 Hilary Buchanan
 Hannah Campbell
 Sarah Peters

 

About DF Capital

DF Capital is a specialist independent bank providing award-winning commercial
finance solutions and savings products to consumers and small businesses.

Founded in 2016, the Group is headquartered in Manchester with over 130
people. DF Capital's commercial lending supports, distributors and
manufacturers across sectors including Automotive, Leisure and Luxury. In
2020, the Group became a fully authorised bank and started offering a range of
consumer savings products.

The Group is listed on AIM on the London Stock Exchange under the ticker DFCH.

For more information, please visit www.dfcapital.bank
(http://www.dfcapital.bank/)

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