Distribution Finance Cap. Hldgs PLC Full Year Trading Update (1670Z)
January 10 2024 - 2:00AM
UK Regulatory
TIDMDFCH
RNS Number : 1670Z
Distribution Finance Cap. Hldgs PLC
10 January 2024
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).
10 January 2024
Distribution Finance Capital Holdings plc
("DF Capital" or the "Company" together with its subsidiaries
the "Group")
Full Year Trading Update
Distribution Finance Capital Holdings plc, a specialist bank
providing working capital solutions to dealers and manufacturers
across the UK, provides a trading update for the financial year
ended 31 December 2023.
The momentum seen during the year continued throughout the
fourth quarter, with the Group reporting its tenth consecutive
quarter of loan book growth. The Group's loan book at 31 December
2023 reached GBP581m, up more than 32% over the course of the year,
with new loan origination for the year increasing by almost 20% to
a record GBP1.2bn (2022: GBP1.0bn).
The Group has grown its dealer customers to 1,182 (2022: 998),
with total credit lines up 26% exceeding a record GBP1bn (31 Dec
2022: GBP817m). The Group now supports 89 manufacturer
partners.
Average stock days for the year extended in line with management
expectations to 148 days versus the Group's historical average of
150 days. In Q4 2023, stock days extended in line with seasonal
expectations to 174 days, but still below historical norms for the
dealer restocking period.
Notwithstanding the macro-economic challenges and higher
interest rate environment, the Group's overdue accounts have
performed consistently well through the year, with 30 dealers
having arrears one day past due, (H1 2023: 29) representing less
than 3% of the Group's dealers base, which includes 20 cases in
legal recovery. The Group's total arrears balance represents less
than 3% of its entire loan book, which includes cGBP10m relating to
RoyaleLife. Excluding RoyaleLife, the Group's arrears balance
equates to less than 1% of its entire loan book.
In light of the Company's strong underlying operational and
financial performance during the year and despite the assumed
prudent credit loss provision for RoyaleLife offset by recent
progress in making partial recovery, the Group now expects to
report a pre-tax profit of no less than GBP3.0m, ahead of its prior
expectations and more than double its FY22 outturn of GBP1.3m.
The Group also completed the annual "Best Companies to Work For"
employee engagement survey. 97% of employees participated in the
most recent survey and the Group is delighted to confirm that it
has achieved 3-star accreditation (Prior year: 2-star), the highest
award possible, demonstrating world class levels of employee
engagement.
The Company expects to announce its audited results for the year
ended 31 December 2023 in April 2024.
Carl D'Ammassa, Chief Executive, commented: "2023 has been
another strong year of growth and demonstrable sustainability in
profitability. Our products and services continue to resonate with
our borrowers and depositors, allowing us to achieve ten
consecutive quarters of loan book growth. We have the capital
capacity to grow our loan book to more than GBP800m without the
need for a Tier 1 equity raise, underpinning our confidence about
our medium-term growth path as we look to support more customers
and become a multi-product lender across the niche sectors in which
we operate. Making significant strides forward in our strategy
whilst also being a world class place to work is a testament to the
commitment and dedication of the entire DF Capital team".
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:
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
Investec Bank plc (Nomad and Joint
Broker) +44 (0) 207 597 5970
David Anderson
Bruce Garrow
Harry Hargreaves
Maria Gomez de Olea
Liberum Capital Limited (Joint Broker) +44 (0) 203 100 2000
Chris Clarke
Lauren Kettle
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