AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- Distribution Finance Capital’s profits for 2024 expected to significantly exceed market forecasts.
- Loan book projected to close between £650-700 million, with pre-tax profits forecast at £18.7 million.
- Plans for consumer lending and asset finance expansion set for the first half of 2025.
Distribution Finance Capital (DFC) has reported a stellar year, with profits for 2024 expected to exceed market forecasts by a wide margin. The company attributes its strong performance to better-than-expected loan margins and a low level of bad debts.
Loan Book Growth and Profit Surge
The loan book is projected to end the year in the range of £650-700 million, reflecting robust growth. Underlying profits are anticipated to surpass £14 million, marking a significant improvement from 2023’s £4.6 million—a near threefold increase.
Adding to this, DFC announced the write-back of a £3 million settlement related to a pending property sale involving RoyaleLife. This adjustment is expected to elevate pre-tax profits to £18.7 million, representing more than a fourfold increase compared to 2023.
Strategic Expansion into Consumer Lending
DFC continues to expand its financial services capabilities. The company’s asset finance and hire purchase lending offerings are gaining traction, supported by an application for consumer lending permission with the Financial Conduct Authority.
The launch of the new asset finance product is on schedule for the first half of 2025. This initiative aims to penetrate a market several times larger than DFC’s existing core lending segment, positioning the company for sustained growth in the coming years.
CEO's Perspective
Carl D’Ammassa, chief executive of DFC, highlighted the company’s achievements:
“2024 marks another year of strong delivery and execution against our business plan. These results reflect our commitment to maintaining profitability while expanding our product offerings and market presence.”
Market Reaction
Following the announcement, DFC’s shares rose 4.5p to 37p, underscoring investor confidence in the company’s strong financial position and future growth potential.
Looking Ahead
DFC’s strategic focus on expanding its lending capabilities and entering the consumer finance market positions it as a competitive player in the financial sector. With a track record of robust execution and profitability, the company is well-equipped to capitalize on new opportunities while maintaining strong financial performance.
The upcoming launch of its asset finance product and continued growth in its loan book are expected to further solidify DFC’s position in a dynamic and evolving market. As the company moves into 2025, it remains committed to delivering sustainable growth and value for its stakeholders.
