Published on: April 21, 2021

Good momentum as FY 2021E starts strongly

DF Capital’s (DFC) FY 2020 results came from a challenging period, but also one of major progress, and were predominantly in line with our expectations – albeit that the pre-tax loss was a touch better than our estimate. Following the fundraising in January 2021, DFC is well-positioned for growth and has started FY 2021E strongly. Our unchanged estimates reflect the potential which the business has to grow its loan book substantially over the next three years, taking advantage of the underserved small business lending market in the UK. We note management’s positive outlook comments and expect to see the Group achieve its target of a profitable monthly run rate in Q4 of this year as its funding costs continue to benefit from a favourable deposit-taking market environment. We continue to assume that operating expenses and the cost of risk remain well controlled and look forward to further positive updates.