Specialist lender Distribution Finance Capital Holdings (DFCH) posted forecast-beating FY25 results thanks to record demand for new loans. The bank also confirmed its financial targets for FY30 including roughly doubling its loan book.
‘Best year so far’
For the year to December 2025, the AIM-listed group reported revenue of £90.9 million, up 19% on FY24. Net income rose 23% to £56 million thanks to an increase in the net interest margin to 8%.
Meanwhile, the cost-income ratio fell 2% to 57% so adjusted pre-tax profit rose 26% to £19.1 million. EPS rose more than 40% to 8.3p while tangible NAV rose 19% to 75.9p/share.
New loans increased 27% to £1.83 billion driving a record closing loan book of £846 million. This included the first contribution from the firm’s DFRNT asset finance product, which has a large addressable market.
CEO Carl D’Ammassa said FY25 was the group’s best year so far. ‘We have delivered on our financial targets, exceeding expectations in almost all areas, launched new products and services, continued to invest in technology and delivered record breaking results.’
D’Ammassa also said the foundations were in place for the firm to hit its 2030 targets. These include a £1.5 billion loan book, cost-income ratio of 45% to 48% and return on equity of 20%.
We flagged DFCH as an interesting way to gain exposure to small-cap UK companies a little while ago. These results back up our view the firm is on a strong growth trajectory, especially as it rolls out new products.
We’re also pleased to see growth will be funded mainly by retained earnings along with support from the British Business Bank. The important takeaway here is there’s no need for a dilutive capital raise as the bank has enough financial headroom.
Read the press release here: https://www.dfcapital-investors.com/
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