By Joe Hoppe
Distribution Finance Capital Holdings PLC said Tuesday that its loan book increased by a record amount in December and its now sees its full-year pretax loss being narrower than it had expected.
The niche lender–which provides working capital to dealers and manufacturers across the U.K.–said its loan book as of Dec. 31 stood at around 250 million pounds ($341.1 million), more-than-doubling the GBP113 million it posted in 2020.
It said it expects to report a pretax loss of GBP4.0 million, narrowing from GBP13.6 million a year before, as it managed to tightly manage costs and has seen very low levels of arrears.
Distribution said it originated around GBP690 million of new loans across 2021, up from GBP253 million a year earlier.
While manufacturers’ supply-chain and shipping issues were easing across many sectors, the company said it remains realistic about its near-term loan book growth, adding that it is targeting a swing to profitability in 2022 in spite of uncertainties.
“We have a strong capital base, following the fundraise early in 2021, which will support our ambitious growth plans for 2022,” Chief Executive Carl D’Ammassa said.
Shares at 0852 GMT were up 0.7 pence, or 1.5%, at 48.5 pence.
Write to Joe Hoppe at [email protected]
