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(Alliance News) - Distribution Finance Capital Holdings PLC on Friday said the coronavirus has hurt its performance so far in 2020 after strong 2019.
The lender said its revenue in 2019 increased to GBP12.7 million from GBP5.2 million, as loan book jumped to GBP208 million from GBP114 million. Loans advanced to customers more than doubled to GBP490 million from GBP233 million in 2018.
Pretax loss widened to GBP13.5 million, however, from GBP7.3 million a year earlier due to growth in operating expenses to GBP14.1 million from GBP8.7 million.
Over the year, Distribution Finance said it extended its product reach further and supported more dealers. Significant investment was made during the year to develop the lending franchise further and build the infrastructure to support the banking licence application.
The company said strong momentum continued into the first quarter of 2020, but the Covid-19 pandemic has resulted in significant economic uncertainty, and slowed strategic progress and lending book growth to June. Many of the comapny's dealers have been closed during the period of lockdown, it said, which has hurt sales and accordingly stock turn.
"In 2020 the challenges of Covid-19, alongside other material uncertainties, have made us more cautious about our asset growth. However, we remain upbeat, and should we be granted a banking licence or agree new wholesale funding terms, the easing of lockdown will allow us to support stronger demand for our working capital products as the impact of the pandemic recedes," said Chief Executive Carl D'Ammassa.
AIM-listed Distribution Finance shares were trading 7.5% lower in London on Friday at 37.00 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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