This announcement contains inside information as stipulated
under the UK version of the Market Abuse Regulation (EU no.
596/2014) as it forms part of UK law by virtue of the European
Union (Withdrawal) Act 2018 (as amended from time to
time).
6 December 2024
Distribution Finance Capital Holdings plc
("DF
Capital" or the "Company" together with its subsidiaries the
"Group")
Trading Update
Full year results expected to be
significantly ahead of market expectations
Distribution Finance Capital Holdings plc, a
specialist bank providing working capital solutions to dealers and
manufacturers across the UK, is pleased to provide a trading update
for the 12 months ending 31 December 2024.
Trading
Update
Loan origination continues to perform in line
with expectations and as a result its loan book will end the year
in the range of £650-700m.The Group's net interest margin ('NIM')
continues to perform ahead of expectations, with operating costs
being well managed and cost of risk running well below the Group's
target of 1%. Accordingly, the Group expects its full year
underlying pre-tax profit (excluding recoveries and write-backs
relating to RoyaleLife) to be significantly ahead of market
expectations at not less than £14m, more than a threefold increase
on its FY23 outturn (FY23: £4.6m).
Additionally, the Group is pleased to confirm
that it has updated its expected credit loss provision relating to
RoyaleLife, having now successfully secured the previously reported
£3m settlement against property that is currently pending sale and
is subject to a new counterparty loan. This settlement was
originally expected to be recognised in FY25. Accordingly, the
Group will write-back a further £3.0m of credit loss provisions
bringing the total recovery relating to RoyaleLife for FY24 to
£4.7m. As a result, total pre-tax profit for the 12 months ending
31 December 2024 is expected to be significantly ahead of market
expectations at not less than £18.7m, more than a fourfold increase
on its FY23 outturn.
The Group continues to make good progress in
the build of its asset finance/hire purchase lending capability,
having now fully completed its application to the Financial Conduct
Authority for consumer lending permission. The launch of this
product, which remains on track for H1 2025, is expected to result
in a significant expansion of our market opportunity with the
addressable market for asset finance being several times larger
than the Group's existing core lending product. This product will
be distributed through the Group's existing dealer and manufacturer
customers to end-user obligors. The Group will provide a further
update on progress in due course.
The Company expects to announce its full year
trading update in mid-January 2025.
Carl
D'Ammassa, Chief Executive, commented: "2024
marks another year of strong delivery and execution against our
business plan. The Group remains well positioned in its strategy to
become a multi-product lender and we remain excited by the level of
interest in our asset finance product ahead of its expected launch
in the first half of 2025."
The
person responsible for arranging the release of this announcement
on behalf of the Company is Karen D'Souza (Company
Secretary).
For
further information contact:
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Distribution Finance Capital Holdings plc
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Carl D'Ammassa - Chief Executive
Officer
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+44 (0) 161 413 3391
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Kam Bansil - Head of Investor
Relations
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+44 (0) 7779 229508
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http://www.dfcapital-investors.com
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Panmure Liberum Limited (Nomad and Broker)
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+44 (0) 203 100
2000
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Chris Clarke
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William King
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Anake Singh
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Alma Strategic Communications
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+44 (0) 203 405 0235
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Josh Royston
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Hilary Buchanan
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Kieran Breheny
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