DF Capital reports record Q1 loan originations

Distribution Finance Capital Holdings plc (DF Capital), the specialist working capital bank serving dealers and manufacturers across the UK, has reported record-breaking performance in its Q1 2025 trading update, with new loan originations reaching £382 million—up from £330 million in the same period last year.

The surge was largely driven by strong demand in the motorhome and caravan sectors. As a result, the Group’s total loan book grew by nearly £50 million since year-end to £713 million, marking a 17% year-on-year increase from £610 million.

The number of dealer customers also saw a significant rise to 1,388, compared to 1,233 a year earlier. Total credit facilities now stand at £1.2 billion, up from £1.1 billion.

DF Capital maintained its strong credit quality, reporting minimal arrears with only 36 dealers one day or more overdue, including 27 in legal recovery. Total arrears accounted for just 0.7% of the loan book at the end of March.

In a further boost, the British Business Bank extended DF Capital’s £350 million ENABLE Guarantee scheme to March 2026, supporting the Group’s continued lending capacity.

The quarter also saw DF Capital receive regulatory approval from the Financial Conduct Authority for its upcoming asset finance and hire purchase offering, expected to launch later this quarter—delivering on its strategic goal of becoming a multi-product lender.

Additionally, DF Capital repurchased nearly 6 million ordinary shares under its ongoing buyback programme initiated in January 2025. The Board reaffirmed its confidence in the company’s long-term value and earnings potential.

Commenting on the update, CEO Carl D’Ammassa said: “We have had an exceptional start to the year, again delivering record levels of quarterly loan origination and further growth in the core inventory finance product.

“Our portfolio continues to perform well, and we are excited to launch our asset finance lending product in Q2 2025, which opens significant new markets for us. This continued strong momentum puts us well on the way toward our ambitions of delivering mid-to-high teens return on allocated capital over the medium term.”