REG - Distribution Finance - Q1 Trading Update

Distribution Finance Capital HoldingsAnnouncement

08/04/2025 07:00

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RNS Number : 0009E  Distribution Finance Cap. Hldgs PLC  08 April 2025

8 April 2025

Distribution Finance Capital Holdings plc

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

Q1 Trading Update

Distribution Finance Capital Holdings plc, a specialist bank providing working
capital solutions to dealers and manufacturers across the UK, is pleased to
announce its first quarter trading update to 31 March 2025.

The strong momentum experienced by the Group continues with record quarterly
new loan origination of £382m (31 March 2024: £330m), driven in part by
robust demand across the motorhome and caravan sector. This has resulted in
the overall loan book increasing by almost £50m since the year-end to £713m,
representing a year-on-year increase of over £100m or c.17% (31 March 2024:
£610m).

The total number of dealer customers stands at 1,388 (31 March 2024: 1,233)
with total credit facilities of £1.2bn (31 March 2024: £1.1bn).

The quarter has seen a continuation of the extraordinarily low arrears
performance with 36 dealers one day or more in arrears at 31 March 2025 (31
March 2024: 18 and 31 December 2024: 33), including 27 dealers in legal
recovery. Total arrears finished the period equivalent to 0.7% of the Group's
loan book (31 March 2024: 0.3% excluding RoyaleLife arrears and 31 December
2024: 0.6%).

The Group is also pleased to announce that the British Business Bank has
agreed to extend the provision of the existing £350m ENABLE Guarantee scheme
to 31 March 2026.

During the quarter, the Group also received authorisation from the Financial
Conduct Authority to enable the launch of its asset finance/hire purchase
capability, which is expected later this quarter and delivers on the Company's
ambition to be a multi-product lender.

Since the launch of the Group's buyback programme in January 2025, 5,989,685
ordinary shares have been repurchased. The Board remains committed to its
buyback programme and continues to believe that the current share price
materially undervalues the Group's future prospects and its intrinsic earnings
potential.

Carl D'Ammassa, Chief Executive Officer, commented: "We have had an
exceptional start to the year, again delivering record levels of quarterly
loan origination and further growth in the core inventory finance product. Our
portfolio continues to perform well, and we are excited to launch our asset
finance lending product in Q2 2025, which opens significant new markets for us
through our existing dealer and manufacturer relationships. This continued
strong momentum puts us well on the way toward our ambitions of delivering
mid-to-high teens return on allocated capital over the medium term."

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

 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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