Distribution Finance Capital Holdings PLC - Manchester-headquartered niche lender focusing on manufacturers - Receives feedback from Prudential Regulation Authority indicating the need for its to "take certain reorganisation steps" in order for its share capital to be classified as common equity tier 1. Will request shareholder support "for the buyback and cancellation of certain existing shares and issuance of new shares held by managers and former managers totalling less than 5% of the company's issued share capital". However, PRA confirms Distribution Finance meets total capital requirement and liquidity coverage ratio as part of resubmitted banking licence application. Application to participate in British Business Bank's ENABLE Funding scheme progresses with headline term issues and due diligence taking place for possible new facility.
Dealers re-open and sales of stock increase to pre-lockdown levels comparable to July 2019. Sales strongest in first sectors to reopeen but building momentum elsewhere. New lending requests limited under lockdown. Now seeing more forward requests. Loan book performs "positively and robustly" following lockdown. July 21 loan book GBP128 million, down from GBP186 million May 31 due to "constrains on new lending" and tend likely to persist into autumn. Company: "Expects significant near and medium-term demand for its lending products."
Current stock price: 39.20 pence
Year-to-date change: down 56%
By Anna Farley; annafarley@alliancenews.com
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Distrib. Fin. (DFCH)