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Distribution Finance Capital

November 2024

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • DFCH
  • Price:
  • 31p
H1 24 had already been disclosed at the Q2 update in July. The loan book from the core inventory finance product increased by 4% from £581m at the end of FY23 to £603m but a combination of higher Net Interest Margin (NIM) and lower cost:income ratio resulted in a trebling of pretax profit from £3.2m to £9.2m (including the £1.7m in Royale Life recoveries). NIM increased from 7.5% to 7.8% due to newly originated loans being priced at the higher base rate in the period and which repriced quicker than the deposit book used to fund the loans, which is on a range of fixed terms. The cost:income ratio reduced from 61% to 59%. The year-end loan book is forecast at £680m by Liberum (giving it £130m headroom). Simply doubling the £7.5m H1 ...

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Distribution Financial Capital - Trading ahead of expectations (August 2024)
Distribution Finance Capital - 11 quarters of loan growth; forward PE of 4.3 (May 2024)

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