Distribution Finance Capital lifts outlook as loan book expands
Distribution Finance Capital Holdings PLC on Friday said it has seen ‘sustained growth’ across its lending activity ahead of expectations in the first half of the year.
The Manchester, England-based provider of financing solutions for dealers and manufacturers said new loan origination in the first half of 2026 is expected to close at around £1 billion, up 21% from £828 million in the previous year.
It now expects to report pretax profit of at least £13 million for the first half, up 44% from £9.0 million a year prior.
Distribution Finance Capital said it now expects results for 2026 to ‘materially exceed current market expectations’ as it noted the continued shift of its loan book towards longer tenor loans, which generates additional near-term financial benefits.
Shares in Distribution Finance Capital jumped 9.7% to 65.25 pence on Friday morning in London.
The company expects the aggregate loan book to close in excess of £915 million at the end of June, up 26% from £728 million at the end of the first half of 2025.
Distribution Finance Capital said its asset finance product ‘continues to build momentum’ especially in the static caravan and holiday park sectors.
It expects the loan book for this product to reach almost £40 million, more than double £15 million at the end of 2025.
The firm said: ‘Lending is originated through the group’s network of dealers, including many larger groups with multiple retail locations who are now authorised to introduce customers to the group. This, combined with a simplified digital application journey for customers, is expected to drive further demand over the rest of 2026 and beyond.’
Overall portfolio quality remains ‘exceptionally strong,’ the firm added, with cost of credit risk ‘well within’ the company’s appetite and target of less than 1%.
Looking ahead, Distribution Finance Capital said: ‘The group continues to realise the benefit of its multi-product lending strategy both in terms of loan origination and loan duration. The remix towards longer tenor lending, in both asset and structured finance, is expected to continue over the medium term.’
The company will reports its interim figures in September.
Chief Executive Officer Carl D’Ammassa said: ‘We continue to make excellent progress, diversifying our lending and supporting our customers with more products and services.
‘Once again we have demonstrated our ability to navigate the macro-economic challenges well leading to lower-than-expected impairments and provisions. 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 laid out previously.’
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