5 April 2023

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).

Distribution Finance Capital Holdings plc

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

Trading Update

and

Notice of Results

DF Capital, a specialist bank providing working capital solutions to dealers and manufacturers across the UK, today provides an update in relation to the expected financial outturn for the year ended 31 December 2022 and its first quarter of trading to 31 March 2023.  

Following the Group's trading update of 19 January 2023 and having built on the strong financial performance reported at its interim results in September 2022, the Board is pleased to confirm that it expects to announce full year results for the year ended 31 December 2022 that materially exceed management expectations, predominantly due to increased net interest income and effective cost management. The Group now expects to report a maiden full year profit before tax of not less than £1m.

In addition, as the Board expects profitable growth moving forward, it is probable that the Group will be able to utilise any remaining tax losses in DF Capital Bank Limited. Accordingly, a deferred tax asset of c£8m is expected to be recognised in the financial year ended 31 December 2022.

The Group has seen continued momentum in its lending during the first quarter. New loan origination exceeded £270m, with the Group's loan book reaching £505m as at 31 March 2023, up c15% since the year end. The Group has also onboarded over 100 new dealers during the quarter and now has, net of account closures, 1,079 active dealer facilities.  

Notice of Results

The Group expects to announce its audited results for the year ended 31 December 2022 on Wednesday 19 April 2023.

Carl D'Ammassa, Chief Executive, commented: "We are delighted that our ambition to deliver a profitable run-rate has now been achieved, in spite of the many global economic and supply chain challenges. Reaching profitability only two years after receiving our banking licence is a significant milestone for the firm and gives us the solid foundation on which to now scale the bank and deliver further profitable growth having seen continued strong demand for our lending products so far this year."

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: