Distrib. Fin. Regulatory News (DFCH)

Distribution Finance Capital Holdings plc

("DFC Holdings" or together with its subsidiary "DFC Ltd", "DFC" or the "Company")

Progress Update

Following the successful completion of the Company's introduction to AIM last month, the business finalised its banking licence application. As indicated at the time of the Company's AIM admission, the Prudential Regulation Authority ("PRA") and the Financial Conduct Authority ("FCA") were working towards a statutory deadline of July 3rd 2019 by when a decision must be given.

At a meeting earlier today the PRA and FCA have provided further feedback which will result in the Company making a limited number of changes to its application. Given the statutory deadline cannot be extended, and the work to amend the application and subsequent PRA review is unlikely to be completed by July 3rd 2019, the Company has decided to withdraw its application with the intention to re-submit the revised version during July 2019. While the decision process and timing remain at the discretion of the regulator, the Board is of the view that the business remains on track to launch into the deposit market in Q4 2019.

Based on the delay DFC anticipate, there is no current expectation that overall profitability during 2019 will materially vary from the current guidance. Trading in the underlying lending business remains strong with assets ahead of forecast at the end of May 2019.

Enquiries

Distribution Finance Capital Holdings plc +44 (0) 20 3937 6406

Chris Dailey, Chief Executive Officer

Gavin Morris, Chief Financial Officer

http://www.dfcapital-investors.com

Macquarie Capital (Europe) Limited (NOMAD and broker) +44 (0) 20 3037 2000

Alex Reynolds

Nicholas Harland

Jonny Allison

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 ("MAR"). The person responsible for arranging release of this information on behalf of the Company is Amelia Elson.

About Distribution Finance Capital Holdings plc:

DFC is a business lender which builds relationships with manufacturers and then provides working capital solutions up and down their supply chains. In order to help businesses drive their growth, DFC's products allow them to match their cash cycle to the lending term, in turn allowing their customers (dealerships for example) to release the working capital tied up in their day to day operations.

As at 31 March 2019, DFC had signed 58 manufacturer programs, with 616 live dealers, typically SME's, who as DFC's primary customers take the lending facilities the manufacturer provides. The business has grown rapidly since it commenced lending in March 2017, with 274% loan book growth in 2018. £392 million of loans have been originated to date. In addition to the 58 signed manufacturers, 48 have agreed terms and the business has grown the loan book by in excess of 25% in the first quarter of 2019.