Aim Bulletin
Distribution Finance reports strong lending momentum
By Josh White
Date: Wednesday 08 Apr 2026
(Sharecast News) - Distribution Finance reported continued strong lending momentum in its first quarter on Wednesday, with record originations and sustained asset quality as its loan book and deposit base expanded.
The AIM-traded specialist lender said new loan origination reached £469m in the three months ended 31 March, up around 23% from £382m a year earlier.
Its loan book grew about 26% year-on-year to £895m, including £21m from its recently launched asset finance product, up about 40% from £15m at the end of 2025.
Retail deposits surpassed £1bn for the first time since the group was authorised as a bank in September 2020, providing a further boost to funding capacity.
Stock days in its core inventory finance product increased modestly to 141 days from 129 days at year-end, remaining within sector norms as the group moved through the dealer restocking period.
Portfolio quality reportedly remained strong, with total arrears and balances in legal recovery representing 0.6% of the loan book, down from 0.9% as at 31 December.
Early arrears totalled four cases with balances of less than £0.1m, while mid to late arrears stood at two cases, also with balances below £0.1m.
Default cases over 90 days past due fell to 30 from 33, with aggregate balances of £5.0m compared with £6.8m at the end of the prior year.
The group said it had not observed any immediate systemic or supply chain impact across its customer base despite ongoing macroeconomic and geopolitical uncertainty, and continues to take a cautious approach to credit risk management.
"It is pleasing to report strong ongoing momentum in lending since the start of the year, demonstrating continued progress against our 2028 and 2030 targets," said chief executive Carl D'Ammassa.
"Whilst the macro-economic and geo-political environment remains uncertain, we are well positioned to navigate this, providing appropriate support - where needed - to our diversified customer base, whilst also drawing on our deep expertise and strong credit stewardship as demonstrated through the economic cycle and most relevantly since authorisation as a bank in 2020."
At 1150 BST, shares in Distribution Finance Capital Holdings were up 8.11% at 60p.
Reporting by Josh White for Sharecast.com.
See latest RNS on Investegate
Article Archive
Free Membership To Digital Look
Discover the full range of Investor's Tools and Services from Digital Look - voted 'Best Research & Information Provider 2007' by Investors Chronicle.
En HeaderFooterDLYou are here: research