Distribution Finance Capital shares jumped 14% after the company announced that this year’s profits are expected to be significantly ahead of market forecasts.
This is attributed to loan margins exceeding targets and low levels of bad debts.
The loan book is projected to close the year within a range of £650–700 million, with underlying profits expected to exceed £14 million — more than three times the £4.6 million reported in 2023.
Additionally, DFC stated it will write back a £3 million settlement related to a property currently pending sale, connected to RoyaleLife. This adjustment will increase pre-tax profits to £18.7 million, marking a more than fourfold rise compared to 2023.
The company also highlighted the growth of its asset finance and hire purchase lending capabilities. It has applied to the Financial Conduct Authority for permission to offer consumer lending.
The launch of the new asset finance product remains on schedule for the first half of 2025. According to the statement, this product will target a market significantly larger than the company's existing core lending product.
Carl D'Ammassa, chief executive, stated: "2024 marks another year of strong delivery and execution against our business plan."
Shares rose by 4.5p to 37p.