Distribution Finance Capital Holdings (DF Capital), the Manchester-based specialist bank, reported continued growth in a third quarter trading update this morning (October 9)
The organisation.provides working capital solutions to dealers and manufacturers across the UK,
During the period to September 30, it said it saw continued momentum from the first half, with strong trading throughout the third quarter.
New loan origination reached £460m, a record quarter, up 30% year-on-year (Q3 2024: £352m) and now exceeding £1.3bn in the financial year to date, driven by growing market share in core sectors and complemented by the launch of new lending products.
The group’s loan book exceeded a record £759m at the period end, up 26% on the prior year (Q3 2024: £604m) and marginally ahead of seasonal expectations.
Stock days, being the average age of loans outstanding, has remained well within sector tolerances at 123 days at the period end (30 September 2024: 142 days).
The bank said its portfolio quality remains strong and well within expectations. It said 43 dealers had arrears of more than one day past due and/or in legal recovery (Q3 2024: 25), representing 3.1% of total dealers. Total arrears and loan balances in legal recovery represented 1.5% (Q3 2024: 0.9%) of the group’s entire loan book:
Dealers with arrears, where fees and principal repayments are outstanding, amounted to 12 with aggregate arrears of c.£702,000, of which seven dealers had amounts outstanding of less than 30 days past due (ie early arrears), equating to c.£290,000.
Dealers with balances in legal recovery (ie non-performing loans), where appropriate impairment provisions have been made and residual asset security is in place, amounted to 31 (Q3 2024: 13), with aggregate loan balances of £10.4m (Q3 2024: £4.5m), representing less than 1.4% of the group’s total loan book.
In asset finance, more than 100 dealers and introducers are now signed up and accepted to originate loans.
Total loan book, including lending to both businesses and consumers, reached a new milestone, closing the period at £10m.
The group said it is encouraged by progress and continues to expect a controlled roll-out of lending in this product over the remainder of 2025 before accelerating in 2026.
CEO, Carl D’Ammassa, said: “The group has seen another period of outstanding growth.
“We are executing on our strategic plan and have a significant runway for further growth ahead across all our lending products.”
He added: “We are pleased with the start we have made with our asset finance product, the market for which is several times larger than our core inventory finance product.
“We enter the final quarter of the year with confidence of achieving full year results in line with market expectations and buoyed by our results so far this year.”