Distribution Finance Loan Book Rose in December; Sees reduced losses in 2021

By Joe Hoppe

Distribution Finance Capital Holdings PLC said on Tuesday its loan portfolio grew by a record amount in December and it now saw its full-year pre-tax loss lower than expected.

The niche lender – which provides working capital to dealers and manufacturers across the UK – said its loan portfolio as of December 31 stood at around 250 million pounds ($341.1 million) , more than double the £113m it posted in 2020.

It said it expected to report a pre-tax loss of £4.0m, up from £13.6m a year earlier, as it managed to manage costs tightly and saw levels of very low arrears.

Distribution said it issued around £690m in new loans in 2021, up from £253m a year earlier.

As manufacturers’ supply chain and shipping issues eased across many sectors, the company said it remained realistic about growing its short-term loan portfolio, adding that it aimed a return to profitability in 2022 despite the uncertainties.

“We have a strong capital base, following the fundraising in early 2021, which will support our ambitious growth plans for 2022,” said Chief Executive Carl D’Ammassa.

Shares at 0852 GMT were up 0.7 pence, or 1.5%, at 48.5 pence.

Write to Joe Hoppe at [email protected]

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