By Anthony O. Goriainoff
Distribution Finance Capital Holdings PLC said Thursday that its loan book was up 76% at the end of 2022, and that despite rising funding costs it has maintained a strong net interest margin of at least 6%.
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 440 million pounds ($543.3 million) compared with GBP249 million at the end of 2021.
The company said it originated around GBP1 billion of new loans across 2022, up from GBP690 million a year earlier.
DFC added that the British Business Bank has agreed an initial GBP175 million Enable program guarantee which may be increased in future to GBP350 million. The company said this will allow it to scale its loan book without the need for additional Tier 1 equity capital by up to GBP75 million, or up to GBP175 million if the facility is increased to GBP350 million.
“The group continues to explore options to raise non-dilutive Tier 2 capital to further support its product diversification and medium-term growth strategy,” the company said.
Shares at 0916 GMT were up 1.50 pence, or 4.6%, at 34.50 pence.
Write to Anthony O. Goriainoff at email@example.com