DF Capital Reports Strong Profit Growth and Loan Book Expansion in 2024 Results
Why we think this is very good
The financial results for DF Capital in 2024 demonstrate exceptional performance across key metrics. Profit before tax surged to £19.1m, a substantial increase from £4.6m in the previous year. Even when adjusting for the RoyaleLife write back, adjusted profit before tax grew impressively from £9.3m to £14.4m. Revenue showed robust growth with gross revenues up 27% to £76.8m. The loan book expanded by 15% to £666m, supported by a 20% increase in new loan origination to £1.44bn. Customer base grew by 13%, reaching 1,334 dealer customers. Importantly, the company's financial health improved with increased cash balances and a shift to positive operating cash flow. The Net Interest Margin saw a slight improvement to 7.9%, while the cost-to-income ratio remained stable. These strong results, coupled with a positive outlook and no significant negative indicators for future trading, suggest that DF Capital is in an excellent position for continued growth and profitability.
Key Points
- Profit before tax increased to £19.1m from £4.6m in 2023
- Adjusted profit before tax (excluding write back) grew to £14.4m from £9.3m
- Gross revenues up 27% to £76.8m
- Loan book expanded by 15% to £666m
- New loan origination increased by 20% to £1.44bn
- Customer base grew by 13% to 1,334 dealer customers
- Net Interest Margin improved to 7.9% from 7.6%
- Cost-to-income ratio remained stable at 59%
- Cash and balances at central banks increased to £110.0m from £89.6m
- Operating cash flow improved from -£37.7m to £9.2m
- Basic earnings per share increased from 1.8p to 7.8p
- Tangible net asset value per share up 15% to 63.8p
- No need for additional Tier 1 capital to support medium-term growth plans
Summary
DF Capital, a specialist bank providing working capital solutions, has reported exceptional financial results for 2024. The company saw its profit before tax soar to £19.1m, up from £4.6m in 2023. Even on an adjusted basis, excluding a significant write back, profit before tax grew to £14.4m. The loan book expanded by 15% to £666m, supported by a 20% increase in new loan originations to £1.44bn. Gross revenues climbed 27% to £76.8m, while the customer base grew by 13% to 1,334 dealers. The company's financial health improved with increased cash balances and positive operating cash flow. With a stable cost-to-income ratio and improved Net Interest Margin, DF Capital appears well-positioned for future growth. The company's outlook remains positive, with plans for multi-product lending and no need for additional Tier 1 capital to support medium-term growth plans.