Q3 trading update

9 October 2024

Distribution Finance Capital Holdings plc

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

Q3 trading update

Continuing momentum underpins confidence in full year financial expectations

Distribution Finance Capital Holdings plc, a specialist bank providing working capital solutions to dealers and manufacturers across the UK, announces a trading update for the third quarter to 30 September 2024.

The Group has continued to see strong momentum in new lending through the period, originating £352m despite normalising seasonality over the summer months, up 24% on the same period in 2023. Year-to-date loan origination has reached c£1.1bn up almost 20% (9 months to 30 September 2023: £891m).

The Group's loan book has performed consistently during the summer months and in line with seasonal expectations, up c13% on prior year and closing the period at £604m (30 September 2023: £537m).

Stock turn, i.e. average loan duration, has been consistent through the quarter at 142 days (6 months to 30 June 2024: 149 days), operating well within tolerance levels and aligned with long term historical norms.

The Group's loan portfolio has continued to perform well with 25 dealers with arrears of >1 day past due (30 June 2024: 20), representing less than 2% of the Group's aggregate total of 1,280 dealers and the aggregate arrears balance equalling less than 0.5% (30 June 2024: 0.5%) of the loan book.

The Group expects to report full-year financial results at least in line with the Board's expectations, with a closing loan book in the range of £650-700m.

Carl D'Ammassa, Chief Executive, commented: "We are re-assured by the predictability of our loan book performance now that the seasonality we've seen historically, and pre-pandemic, has normalised. We are now entering the period where dealers will look to re-stock following a period of strong summer sales, which should see our loan book grow as we head into the new year. I continue to be excited by the opportunities ahead of us as we enter new sectors, finalise the launch of our hire purchase product which is expected to considerably increase our market opportunity, whilst also continuing to grow our market share in the sectors we currently support."

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