DF Capital – cracking Interims point to record results for this year, shares 55p up 10%, leaving a lot more to come yet, NAV 70.2p, brokers TP 85p

11.09.2025

DF Capital (LON:DFCH) this morning reported strong results for the six months to end June, with profit before tax reaching £9.0m, a 20% increase from the £7.5m reported in the comparable period.

New lending rose by 17% to £828m, supported by £1.4bn in facilities and serving 1,491 dealers.

The loan book grew to £728m, up 21% year-on-year.

The net interest margin remained strong at 7.9%.

Retail deposits totalled £688m from approximately 15,500 accounts.

Adjusted EPS increased to 3.8p, and its adjusted tangible net asset value per share reached 70.2p.

The company anticipates the full-year profit will materially exceed current market expectations.

The Business

Distribution Finance Capital Holdings (LON:DFCH), now better known as DF Capital, is a specialist independent bank providing award-winning commercial finance solutions and savings products to consumers and small businesses.

Founded in 2016, the group, which is headquartered in Manchester with over 130 people, became a fully authorised bank in 2020 and started offering a range of consumer savings products.

DF Capital's commercial lending supports, distributors and manufacturers across sectors including Automotive, Leisure and Luxury.

The principal activity of the company is as a specialist personal savings and commercial lending bank group.

It provides niche working capital funding solutions to dealers and manufacturers across the UK.

The Bank’s inventory finance products enable manufacturers to maximise their distribution networks and allow dealers to purchase more assets, or free up working capital from cash held in stock.

It offers and serves over 15,500 active customers via its online platform and its Manchester-based customer support team, it works with approximately 90 manufacturers and almost 1,500 dealers in the leisure, commercial and powersports sectors.

Management Comment

CEO Carl D'Ammassa stated that:

"The Group has made great progress in achieving our strategic ambitions and enjoyed another period of growth which underpins the significant increase in overall profitability.

 We continue to scale the bank efficiently and the launch of our asset finance product will significantly expand our addressable market opportunity whilst also deepening our relationships with manufacturer and dealer customers in the sectors we currently serve.

With this fuller suite of products and services, DF Capital has an abundance of opportunities to grow lending.

The foundations are now in place upon which we can build our medium-term growth plans.

Given the progress during the period, we expect full year results to be materially ahead of current market expectations, supporting the pace of our journey to deliver on the medium-term targets we laid out at the start of the year including ending FY28 with a loan book of c£1.3bn and a mid-teens return on equity.”

Broker’s View

Rae Maile and Ross Luckman, analysts at Panmure Liberum, rate the shares as a Buy, with a Target Price of 85p.

Their current year estimates are for pre-tax profits of £8.0m, with earnings of 7.3p per share.

For next year they see £19.0m profits and 7.9p of earnings.

Leaping forward into 2027, the analysts look for £23.6m profits and 9.8p per share in earnings.

My View

On the basis of the analyst estimates, the shares of DF Capital are an excellent addition for any portfolio.

Now trading at 55p, they have broken through my previous TPs.

I now set a new Target Price of 69p for the shares.

(Profile 08.04.22 @ 41p set a Target Price of 51p*)

(Profile 30.05.25 @ 39p set a Target Price of 49p*)

Asterisks * denote that Target Prices have been achieved since Profile publication.