Last checked at 4 Nov 2019 07:00
4 November 2019
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION (EU) NO.596/2014.
Distribution Finance Capital Holdings plc("DFC" or the "Company" or together with its subsidiaries the "DFC Group")
Board Changes and Corporate Update
The Company announces that Chris Dailey, Chief Executive Officer and Executive Director, has left the DFC Group following an internal investigation into his personal conduct.
The Board has appointed Henry Kenner, an existing Non-Executive Director of the Company, as Acting Chief Executive Officer. The senior management team, which includes Andrew Stafferton (a co-founder of DFC Group), will remain otherwise unchanged by this appointment. Henry was responsible for the initial investment in and creation of the DFC Group in 2016 and has been actively involved ever since. The Company will now commence an executive search for a new permanent Chief Executive Officer.
The change of management referred to above constitutes a waivable early amortisation event pursuant to the DFC Group's funding facilities with its senior and senior mezzanine facility lenders (the "Lenders"). The Company has informed the Lenders of the change in management and is seeking a waiver of this provision in accordance with the terms of the DFC Group's funding facilities. The Lenders have confirmed that the facilities will remain in place as they now go through their internal processes to review the waiver request.
The PRA continues to consider the Company's bank licence application and the Company has kept them informed of the matters referred to above. In terms of timing, the Board understands that a bank licence cannot be granted before a permanent and approved Chief Executive Officer is appointed. This important appointment is unlikely to be before the end of 2019. The Company will continue its dialogue with the PRA in connection with this appointment, discussions with lenders and any other matters relevant to the bank licence.
The Company has continued to trade well with gross new lending exceeding £50m in September 2019. The consequences of today's announcement are not currently expected to have any significant effect on the Company's results for the year ended 31 December 2019. The Company will update the market on its ongoing licence application process, the outcome of the waiver requests and any implication of these matters on the outlook for the 2020 financial position and results in due course.
The person responsible for arranging for the release of this announcement on behalf of DFC is Henry Kenner.
Enquiries:
Distribution Finance Capital Holdings plc
Henry Kenner, Acting Chief Executive Officer +44 (0) 20 3937 6436
http://www.dfcapital-investors.com
Macquarie Capital (Europe) Limited (NOMAD and broker)
Alex Reynolds +44 (0) 20 3037 2000
Jonny Allison
Blue Pool Communications (Financial PR)
Nick Lord +44 (0) 07501 271 093
Forward looking statements
This announcement contains forward looking statements with respect to the business, strategy and plans of the company and its current goals and expectations relating to its future financial condition and performance. Statements that are not historical facts, including statements about DFC or management's beliefs and expectations, are forward looking statements. By their nature, forward looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. DFC's actual future results may differ materially from the results expressed or implied in these forward-looking statements as a result of a variety of factors. These include UK domestic and global economy and business conditions, risks concerning borrower credit quality, market related risks including interest rate risk, inherent risks regarding market conditions and similar contingencies outside DFC's control, any adverse experience in inherent operational risks, any unexpected developments in regulation or regulatory and other factors.