Business
Trading Statement
Trading Statement.
About this update from Distribution Finance Capital Holdings Plc
[{"type":"text","content":"\n\nThis announcement contains inside information as stipulated under the UK version of the Market Abuse Regulation (EU no. 596/2014) as it forms part of UK law by virtue of the European Union (Withdrawal) Act 2018 (as amended from time to time).\n \n29 November 2023\n \nDistribution Finance Capital Holdings plc\n(\"DF Capital\" or the \"Company\" together with its subsidiaries the \"Group\")\n \n \nTrading and Capital Strategy Update\n \nDistribution Finance Capital Holdings plc, a specialist bank providing working capital solutions to dealers and manufacturers across the UK, provides an update in relation to its single large obligor arrears balance, a trading update and a change to its medium-term capital strategy.\nUpdate relating to large single obligor's arrears balance\nThe Group previously reported that as at 30 June 2023 the Group's arrears included £10.4m of balance outstanding in respect of a large single obligor; RoyaleLife and associated companies (\"RoyaleLife\"), a customer of the Company since June 2018, representing c.2 per cent of the Group's loan book as at 30 September 2023. Whilst the refinancing and restructuring of RoyaleLife was in progress, it had been delayed, and at that time the Group's assessment, following engagement with key stakeholders, was that the Group would be repaid should the proposed refinance complete as planned.\nThe Group is aware of a significant number of assets which have been sold out of trust or are missing from confirmed locations and following continued work with various stakeholders, it is now clear that RoyaleLife's financial situation and operation is much opaquer and more complex than originally determined, adversely impacting, to a greater degree than expected, a larger number of secured lenders and other creditors.\nWhilst the Group understands that action to refinance RoyaleLife remains in progress, there is no certainty at this stage given the elapsed time and new information that this will lead to a satisfactory outcome and successful refinance, which will see the Group being substantively repaid.\nWhilst the Group will continue to work with stakeholders to effect a good outcome, pursuing recovery of the outstanding debt to the fullest extent possible, the Group intends to make an appropriate credit loss provision in its full year accounts for the...