Distribution Finance reports record new loan origination
By Josh White
Date: Tuesday 08 Apr 2025
(Sharecast News) - Distribution Finance Capital reported record new loan origination of £382m in the first quarter of 2025 on Tuesday, up from £330m a year earlier, as strong demand - particularly in the motorhome and caravan sector - helped drive continued growth across its lending operations.
The AIM-traded company said its loan book increased by nearly £50m during the quarter to £713m, representing a year-on-year rise of around 17%.
It said the total number of dealer customers rose to 1,388 from 1,233, while available credit facilities increased to £1.2bn.
Credit quality remained robust, with arrears equivalent to just 0.7% of the loan book on 31 March.
Of the 36 dealers in arrears, 27 were in legal recovery.
Although up slightly from the prior year's figure of 0.3% - excluding the impact of RoyaleLife - the board said arrears remained low by industry standards.
DF Capital also confirmed that the British Business Bank had extended the £350m ENABLE Guarantee scheme to 31 March 2026, supporting the group's continued lending capacity.
Separately, the group said it had been authorised by the Financial Conduct Authority to launch an asset finance and hire purchase offering, expected later in the quarter.
Since launching its share buyback programme in January, the company said it had repurchased nearly six million shares.
The board reiterated its belief that the current share price undervalued the group's future prospects and intrinsic earnings potential.
"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," said chief executive officer Carl D'Ammassa.
"Our portfolio continues to perform well, and we are excited to launch our asset finance lending product in the second quarter of 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."
At 1202 BST, shares in Distribution Finance Capital Holdings were up 4.58% at 33.99p.
Reporting by Josh White for Sharecast.com.
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