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).
18 March 2024
Distribution Finance Capital Holdings plc
("DF Capital" or the "Company" together with its subsidiaries the "Group")
Trading Update
and
Notice of Results
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 and the year to date.
The Group is pleased to announce that, due to prudent forecasting of credit loss provisions at the year-end, unrelated to any provision for its RoyaleLife exposure, and proactive operational cost control by management, it now expects to report a pre-tax profit of approximately £4.4 million for the year ended 31 December 2023, ahead of the Board's prior expectations and more than triple the outturn of £1.3 million for the prior year.
The Group is also pleased to report a positive start to the current year, with its loan book, dealer facilities and credit limits continuing to grow year-to-date. The Group's financial and operational performance is in line with the Board's expectations for the year.
The Group also notes that, on 11 January 2024, the Financial Conduct Authority ("FCA") announced a far-reaching review into historical motor finance and discretionary commission arrangements, where dealers, brokers and introducers of finance transactions could increase the interest rate that a customer pays to increase the commission they receive for the introduction. The Group has not offered products or services that would fall within the scope of the FCA's review, nor does it have commercial arrangements with dealers or brokers of this type. Accordingly, the Group considers it is not impacted by the FCA's current review.
Notice of Results
The Group expects to announce its audited results for the year ended 31 December 2023 on 9 April 2024.
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 |
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| Investec Bank plc (Nomad and Joint Broker) | +44 (0) 207 597 5970 |
| David Anderson Bruce Garrow Harry Hargreaves Maria Gomez de Olea | |
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| Liberum Capital Limited (Joint Broker) | +44 (0) 203 100 2000 |
| Chris Clarke Lauren Kettle | |
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