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Published on: December 7, 2021

Doubling of the loan book confirmed

Distribution Finance Capital Holdings (DFCH) announced yesterday that, due to supply chain delays, critical orders for some of its dealers will now arrive in January 2022. The loan book stood at £202m on 30 September, and DFCH has confirmed an increase to £243m as at 30 November, a doubling of the loan book since the start of the year. The company now expects the 2021 year-end loan book to be in the range of £250m to £275m, and we update our forecast to £260m. The Board expects to achieve monthly run-rate profitability during Q1 2022. The delays have a relatively modest impact on 2021 revenue, more than offset by an improved impairment and operating costs outlook. The lower closing 2021 loan book will, however, reduce the tailwind benefit to 2022 average balances, which is reflected in our reduced 2022 earnings forecasts.

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