Distribution Finance Cap. Hldgs PLC Trading Update (7112F)
12 7월 2023 - 3:00PM
UK Regulatory
TIDMDFCH
RNS Number : 7112F
Distribution Finance Cap. Hldgs PLC
12 July 2023
12 July 2023
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).
Distribution Finance Capital Holdings plc
("DF Capital" or the "Company" together with its subsidiaries
the "Group")
Trading update for the six months ended 30 June 2023
Distribution Finance Capital Holdings plc, the specialist bank
providing working capital solutions to dealers and manufacturers
across the UK, announces a trading update for the six months ended
30 June 2023.
-- Continued strong new loan origination up c. 38% to c. GBP607m
(H1 2022: GBP439m), including c.GBP21m of new lending originated
across adjacent receivables financing (invoice discounting) and
wholesale funding products.
-- Loan book ended the period up 18% at GBP519m (H1 2022:
GBP309m), which was ahead of management expectations in what is
usually a weaker Q2.
-- 184 new dealers added during the period, taking live dealers
to 1,152 (H1 2022: 908) with total facilities being provided of
GBP926m (H1 2022: GBP724m).
-- Stock turn slowed to approximately 133 days (H1 2022: 110
days), extending by 13 days since year end (Dec 2022: 120
days).
-- Over GBP168m of retail deposits raised and retained through
the period (H1 2022: GBP84m) at an average interest rate of
4.4%.
-- Net Interest Margin ("NIM") continued to perform in excess of
the Group's 6% target, influenced by movements in the UK base
rates. The Group expects to revert to and maintain its NIM target
as base rate reduces over the medium-term.
-- Continued positive portfolio performance: 29 dealers (Dec
2022: 24) with arrears greater than one day past due date.
-- Further progress made to pursue non-dilutive Tier 2 capital
to support product diversification and medium-term growth
strategy.
At 31 December 2022, the Group reported one obligor completing a
major refinancing with arrears equivalent to c.1% of the loan book.
Given the complexities of the legal entities and funding structures
in place under single ownership, the restructuring and refinancing
process has been delayed but is expected to conclude over the
summer months. The Group has extensive cross company and personal
guarantees in place and expects to be repaid in full once the
refinancing is concluded.
Outlook
-- As anticipated in a more challenging macro-economic
environment, the Group sees early signs of a tightening of demand
and discretionary spend by end-users for dealers' products. In
response, certain manufacturers, particularly across leisure
sectors, are reducing production capacity over the summers months
to adjust product supply to align better with expected demand.
Accordingly, stock turn is expected to extend further over the
coming months and trend towards our historical average of 150
days.
-- Despite continued macro-economic uncertainty and the increase
in bank base rate over the last year requiring greater vigilance
and a cautious approach to our lending activities and portfolio
management, the Board currently expects financial performance for
the full year to be slightly ahead of management expectations,
targeting a year end loan book for 2023 in the range of
GBP550m-600m, and continued profitable growth.
The Company expects to announce its results for the six months
ended 30 June 2023 during September 2023.
Carl D'Ammassa, Chief Executive, commented: "Whilst the
macro-economic environment has continued to prove challenging this
year, we have proven that our products and services play an
important role in supporting working capital for dealers and
manufacturers. We have increased our lending ahead of seasonal
expectations achieving new record loan balances along the way. Our
proven retail deposit raising capability has successfully supported
our lending growth. We remain cautiously optimistic about our
second half performance, despite the general economic uncertainty
caused by high interest rates to curb inflation."
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
http://www.dfcapital-investors.com
Investec Bank plc (Nomad and Joint
Broker) +44 (0) 207 597 5970
David Anderson
Bruce Garrow
Harry Hargreaves
Maria Gomez de Olea
Liberum Capital Limited (Joint Broker) +44 (0) 203 100 2000
Chris Clarke
Lauren Kettle
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END
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