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."

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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