Distribution Finance Capital Holdings (AIM:DFCH) expects its full-year results to materially exceed current market expectations, driven by record lending volumes and stronger-than-anticipated loan book performance in the six months to 30 June.
The specialist bank, which provides lending solutions to manufacturers, dealers and distributors across the UK, said new loan origination for the period is expected to reach approximately £1 billion, a record figure up 21% on the first half of 2025 (H1 2025: £828 million), while the aggregate loan book is expected to close the period above £915 million, more than 25% ahead of the prior year (H1 2025: £728 million).
Its asset finance product delivered particularly sharp growth, with the loan book expected to reach almost £40 million by period end, nearly three times the £15 million recorded at 31 December 2025, led by demand in the static caravan and holiday park sectors.
The Group expects to report first-half profit before tax of at least £13 million, equivalent to an annualised return on required equity of over 17%.
"Our multi-product strategy is now bearing fruit, building additional returns and leaving the Group well placed to deliver on our ambitious FY28 and FY30 targets," said Chief Executive Carl D'Ammassa.
Cost of credit risk remained well within the Group's internal appetite of less than 1%, despite what management described as a cautious macro-economic backdrop.
Interim results for the six months ended 30 June are expected in September.
