DFCH - Ticker AI Digest

TR1 Buy

DF Capital Holdings plc ("DF Capital" or the "Company" together with its subsidiaries the "Group") Audited Results for the year ended 31 December 2024 Strong performance ahead of initial expectations Distribution Finance Capital Holdings plc, the specialist bank providing working capital solutions to dealers and manufacturers across the UK, today announces its audited results for the year ended 31 December 2024. Highlights 2024 2023 Change Performance Loan Book (£m) 666 581 15% New loans advanced to customers (£m) 1,440 1,200 20% No of dealer customers 1,334 1,182 13% Financial 2024 2023 Change Gross Revenue (£m) 76.8 60.4 27% Net Income (£m) 45.6 38.0 20% Cost of Risk (bps) (4) 228 (102%) Profit before tax (£m) 19.1 4.6 317% Net Assets (£m) 115.4 100.4 15% Basic earnings per share (pence) 7.8 1.8 338% Tangible net asset value per share (pence) 63.8 55.6 15% · Strong financial performance, delivering profit before tax of £19.1m, including a £4.7m write back of a provision made in 2023, more than four times 2023 outturn · Strong growth in new loan origination of £1.44bn, up almost £250m on the prior year supporting a record year-end loan book of £666m, up 15% on 2023 · Net Interest Margin ("NIM") increased by 30bps to 7.9%, well ahead of target · Strong credit risk performance with continued low number of arrears cases: 33 dealers (2023: 30), with arrears one day past due and in legal recovery, representing less than 3% of the Groups entire dealer customer base · Retail deposits increased during the year by £75m to £650m with over 15,600 savings accounts · Tangible net asset value per share increased by 8.2p to 63.8p, up 15% on 2023. · Continued progress in diversifying the Groups product set and end markets, ensuring further avenues for long-term growth without the need for a dilutive capital raise Carl DAmmassa, Chief Executive, commented: "2024 was another year of significant progress for the Group, marking our third consecutive year of profit growth since our authorisation in 2020. This year, we have continued to scale the bank in our core inventory finance lending space, whilst also making investments in new products and services, bringing to life our ambitions to become a multi-product lender. I am incredibly proud of the team and the products we are bringing to life for our customers. We have an exciting journey ahead of us." An overview video of the results, by CEO Carl DAmmassa, is available to watch here: https://bit.ly/DFCH_FY2024_overview and on the Companys website: https://www.dfcapital-investors.com Analyst presentation The Company will host an analyst webinar at 9am today relating to the results. Analysts wishing to join can register by emailing dfcapital@almastrategic.com. Investor presentation The Company will also provide a presentation to existing and potential shareholders via the Investor Meet Company platform at 2:30pm. Investors can register for the webinar here: https://www.investormeetcompany.com/distribution-finance-capital-holdings-plc/register-investor A recording of the presentation will be made available on the Companys website following the conclusion of the investor presentation. Annual General Meeting The Company will hold its Annual General Meeting on 4 June 2025 at the Companys registered office in Manchester. The Notice of AGM and Form of Proxy will be posted to shareholders in due course and a copy will be available at www.dfcapital-investors.com. The Groups full Annual Report and Financial Statements have today been published and are available on its investor website at www.dfcapital-investors.com. The person responsible for arranging the release of this announcement on behalf of the Company is Karen DSouza (Company Secretary). For further information contact: Distribution Finance Capital Holdings plc Carl DAmmassa - Chief Executive Officer +44 (0) 161 413 3391 Kam Bansil - Head of Investor Relations +44 (0) 7779 229508 http://www.dfcapital-investors.com Panmure Liberum Limited (Nomad and Broker) +44 (0) 203 100 2000 Chris Clarke William King Alma Strategic Communications +44 (0) 203 405 0235 Josh Royston Hilary Buchanan Hannah Campbell Sarah Peters About DF Capital DF Capital is a specialist independent bank providing award-winning commercial finance solutions and savings products to consumers and small businesses. Founded in 2016, the Group is headquartered in Manchester with over 130 people. DF Capitals commercial lending supports, distributors and manufacturers across sectors including Automotive, Leisure and Luxury. In 2020, the Group became a fully authorised bank and started offering a range of consumer savings products. The Group is listed on AIM on the London Stock Exchange under the ticker DFCH. For more information, please visit www.dfcapital.bank Chairs Statement It is with immense pride that I present my statement for the last financial year. 2025 marks my sixth year with the Company, having assumed the role of Chair in 2021. During this time, it has been truly rewarding to see how the firm has grown and developed, having achieved the status of a bank only four years ago. This year, we are pleased to report significant year-on-year increases in profit, continued loan book growth and the imminent launch of new products and services. Such accomplishments are remarkable, especially considering the early-stage nature of our bank. As a Board, we believe that DF Capitals journey since authorisation has been exceptional, marked by outstanding delivery and achievement of key milestones. This year, in addition to our strong financial performance, we have made great progress towards our ambitions to be a multi-product lender, supporting our dealer and manufacturer customers in a bigger way though lending product adjacencies. Our singular focus on reaching profitability quickly after authorisation has paid off. We have a strong financial base and accretive capital position that allows us to grow at meaningful levels year-on-year. We are now in a virtuous circle of scale, generating increasing levels of annualised earnings, which in turn creates capital unlocking further scale in our lending capacity. Our updated medium-term guidance, which does not require additional Tier 1 capital, sets the firm apart from many early-stage banks. We are now delivering double digit returns on equity that is firmly "baked in" to our financial performance and we are on track to achieving mid-to-high teens returns in the medium term. Whilst delivering on our financial objectives is undoubtedly critical, what I believe further sets DF Capital apart is the equal focus given to having a strong positive culture, where employees can thrive and demonstrate their passion to deliver the very best levels of customer service. As a Board, we do not put the financial successes down to good fortune. We believe it is the careful orchestration of a strong strategic focus, great culture, fabulous people and exceptional leadership that bring this level of performance to life. The team at DF Capital is passionate about its purpose, doing the right thing and giving back to the communities in which it operates. Throughout our workforce, the ambition and enthusiasm for what they do is palpable. My fellow Board members and I enjoy spending time with the DF Capital team, lending our support and providing constructive challenge to the management team to drive greater success. The Board believes DF Capital is an exciting growth story with a strong investment case. Its undoubted that we have many opportunities ahead of us to further scale the bank at attractive risk adjusted returns in specialised lending niches. The management teams focus on delivering exceptional service to our borrowers and retail depositors, through scalable and cost-efficient technology solutions sets it apart, demonstrated by the significant year-over-year growth in lending and strength of customer sentiment and the industry recognition and awards received. We believe the launch of our share buyback programme in January 2025 sends a clear message about the confidence we have in the Groups intrinsic earnings potential and runway for further growth. As a Board, we continue to believe the Groups share price undervalues its current and future prospects and given this material disparity we felt compelled to launch the programme. It is also undoubted that we have a high-quality team at DF Capital, but this level of performance is not possible without supportive shareholders, customers and wider stakeholders, to whom I extend my gratitude. Whilst the global macro-economic uncertainty and some negative business sentiments in the UK remain, Im optimistic about DF Capitals future prospects. We are at a point of transformation for the firm as we accelerate our multi-product lending ambitions and drive further scale across the bank, unconstrained by legacy issues or remediation activities felt by others in the sector. Mark Stephens Independent Non-executive Chair Chief Executive Officers Report 2024 has seen us continue to scale the bank in line with our growth plans. In particular, we are proud to have delivered our third consecutive year of profit, only four years since being authorised as a bank in 2020. During that time, we have seen more than a sevenfold increase in our loan book, supported by our retail savings proposition, and it is this scaling of lending that underpins our franchise and overall profit generation. The Group has delivered pre-tax profit of £19.1m being more than a four-fold increase on the prior year (2023: £4.6m), including a significant write-back of the provision we made last year relating to RoyaleLife and associated companies. The Groups adjusted pre-tax profit is £14.4m being a 55% year on year increase (2023: £9.3m). Tangible net asset value per share increased significantly during the period to 63.8p (2023: 55.6p). I believe the Groups performance in the year clearly demonstrates the successful delivery against our strategic objective to become a multi-product lender. Im extremely proud of the business we continue to build and the products and services we are bringing to life for our customers. Disciplined approach to growth drives strength of financial return The Group continues to operate in attractive niche lending markets, providing working capital solutions to dealers and manufacturers. Despite significant macro-economic headwinds, we have continued to grow our new loan origination both in the core inventory finance product and new product adjacencies. New loan origination reached £1.44bn up almost £250m on the prior year (2023

£1.2bn). The Groups loan book increased by almost 15% to £666m (2023: £581m). Whilst we remain focused on delivering double digit rates of loan book growth, we have not compromised on credit quality and have also maintained a disciplined approach to pricing, given the value and opportunity our lending products unlock for our customers. We have selectively increased our lending customers to 1,334 (2023: 1,182) and now support 88 (2023: 89) manufacturer partners, who meet our current credit standards and represent scalable ongoing relationships. Total credit lines pledged to customers were £1,142m (2023: £1,030m). The number of dealers in arrears held strong at 33 (2023: 30), with arrears classified as a payment of at least one day past due, representing less than 3% of the Groups entire dealer customer base. The Groups total arrears closed the year at £4.3m (2023: £14.0m), equal to 0.64% (2023: 2.4%) of total lending. Net Interest Margin (NIM) increased marginally through the year to 7.9% (2023: 7.6%), a significant driver of our year-over-year profit improvement. Our operating platform is significantly scalable and, whilst costs have increased overall given new hires, investments in technology and product capabilities, as well as general inflationary pressures, our cost-to-income ratio broadly held at 59% (2023: 58%). We expect this cost income ratio to continue to fall over the medium term as the Group scales its loan book, and expect this ratio to be less than 50% by 2028. The Groups adjusted return on equity, excluding the RoyaleLife write back, is on the cusp of exceeding 10% at 9.8% (2023: 6.7%). Continued momentum in core lending product builds market share In our core inventory finance product, the range of end-user markets we support remains stable and our portfolio continues to be well diversified across multiple sectors. Undoubtedly, it has been another unpredictable year from a macro-economic perspective, impacted further by the change in Government during the second half of the year. During the year we have grown our market share, demonstrated through the increase in new loan origination, which reached £1.44bn. It is clear in some sectors that the measures from the UK Governments budget caused a number of dealers to be more cautious in ordering and holding inventory over the festive period and winter months, traditionally a period where dealers would build up stock in readiness for the spring and the period where end-user sales ordinarily increase. This reticence has continued through the start of 2025, whilst some dealers consider the wider impact on their business of anticipated business rates increases, alongside an increase in employers national insurance contributions and an expectation of interest rates continuing to be elevated. Average stock days, which measures the average age of loans outstanding, was 145 days for the year remaining consistent with the prior year (2023: 145 days). We saw a modest reduction during Q4 2024 to 140 days (Q4 2023: 148 days). Overall, we are pleased with where our loan book closed the year at £666m, up 15% on 2023. We continue to make significant strides forward in the motorhomes and caravans, marine, motorcycles and automotive sectors, where we have grown our market share materially during the year despite some of the market challenges. Motorhome and caravan end-user demand has been particularly high during the second half of the year given the better weather conditions, encouraging people to seek out domestic holidays. This increase in demand and a rebalance of production by manufacturers has allowed dealers to adjust their stock levels to better align to anticipated demand. Elevated end-user demand for motorhomes and pre-orders saw an unprecedented number of sales during the first half of the year, reaching more normalised levels after the summer months. In the caravan tourer market, much of the year has been characterised by stock overhang from prior years, with manufacturers adjusting production to better match dealer orders meaning that fewer new units have been manufactured during the year. End-user demand was slower in the first half having been adversely impacted by poor weather conditions. The holiday home and lodge sector has continued to work through more challenging times, caused by severe weather conditions and the aftermath of the failure of RoyaleLife. That being said, having now adjusted production levels, sales are increasing as park operators fill stock gaps and rebalance their existing stock towards larger units in line with demand. The market has seen some shift to short-term holiday rental bookings versus sales of units

the Groups flexible lending products ably help unlock this opportunity for the park operators. Additionally, there continues to be a healthy level of activity among those with sizeable pension pots looking to make investments in prefabricated holiday homes to enjoy during retirement. Like other sectors, marine manufacturers have also adjusted their production levels to align better with end-user demand, particularly at the leisure craft / smaller boat end of the market. Larger boats continue to see strong demand. Generally, end-users in these leisure focused markets are resilient to the impact of elevated interest rates and cost of living pressures, leaving dealers buoyant about prospects in 2025 and beyond. Whilst growing from a low base, the automotive sector has seen consistent levels of demand across higher value cars, with more challenging times relating to conventional and electric vehicles in particular. This more challenging landscape has been mirrored in the transport sector, particularly the light commercial vehicles space where some market participants have ran significant discount campaigns, adding pressure to our distributor partners who operate in this market. Government policy on electric vehicles has also materially impacted demand for new EVs more generally. The industrial sectors, which is predominantly plant and machinery, correlates closely with government plans of major

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DF Capital Holdings plc ("DF Capital" or the "Company" together with its subsidiaries the "Group") Audited Results for the year ended 31 December 2024 Strong performance ahead of initial expectations Distribution Finance Capital Holdings plc, the specialist bank providing working capital solutions to dealers and manufacturers across the UK, today announces its audited results for the year ended 31 December 2024. Highlights 2024 2023 Change Performance Loan Book (£m) 666 581 15% New loans advanced to customers (£m) 1,440 1,200 20% No of dealer customers 1,334 1,182 13% Financial 2024 2023 Change Gross Revenue (£m) 76.8 60.4 27% Net Income (£m) 45.6 38.0 20% Cost of Risk (bps) (4) 228 (102%) Profit before tax (£m) 19.1 4.6 317% Net Assets (£m) 115.4 100.4 15% Basic earnings per share (pence) 7.8 1.8 338% Tangible net asset value per share (pence) 63.8 55.6 15% · Strong financial performance, delivering profit before tax of £19.1m, including a £4.7m write back of a provision made in 2023, more than four times 2023 outturn · Strong growth in new loan origination of £1.44bn, up almost £250m on the prior year supporting a record year-end loan book of £666m, up 15% on 2023 · Net Interest Margin ("NIM") increased by 30bps to 7.9%, well ahead of target · Strong credit risk performance with continued low number of arrears cases: 33 dealers (2023: 30), with arrears one day past due and in legal recovery, representing less than 3% of the Groups entire dealer customer base · Retail deposits increased during the year by £75m to £650m with over 15,600 savings accounts · Tangible net asset value per share increased by 8.2p to 63.8p, up 15% on 2023. · Continued progress in diversifying the Groups product set and end markets, ensuring further avenues for long-term growth without the need for a dilutive capital raise Carl DAmmassa, Chief Executive, commented: "2024 was another year of significant progress for the Group, marking our third consecutive year of profit growth since our authorisation in 2020. This year, we have continued to scale the bank in our core inventory finance lending space, whilst also making investments in new products and services, bringing to life our ambitions to become a multi-product lender. I am incredibly proud of the team and the products we are bringing to life for our customers. We have an exciting journey ahead of us." An overview video of the results, by CEO Carl DAmmassa, is available to watch here: https://bit.ly/DFCH_FY2024_overview and on the Companys website: https://www.dfcapital-investors.com Analyst presentation The Company will host an analyst webinar at 9am today relating to the results. Analysts wishing to join can register by emailing dfcapital@almastrategic.com. Investor presentation The Company will also provide a presentation to existing and potential shareholders via the Investor Meet Company platform at 2:30pm. Investors can register for the webinar here: https://www.investormeetcompany.com/distribution-finance-capital-holdings-plc/register-investor A recording of the presentation will be made available on the Companys website following the conclusion of the investor presentation. Annual General Meeting The Company will hold its Annual General Meeting on 4 June 2025 at the Companys registered office in Manchester. The Notice of AGM and Form of Proxy will be posted to shareholders in due course and a copy will be available at www.dfcapital-investors.com. The Groups full Annual Report and Financial Statements have today been published and are available on its investor website at www.dfcapital-investors.com. The person responsible for arranging the release of this announcement on behalf of the Company is Karen DSouza (Company Secretary). For further information contact: Distribution Finance Capital Holdings plc Carl DAmmassa - Chief Executive Officer +44 (0) 161 413 3391 Kam Bansil - Head of Investor Relations +44 (0) 7779 229508 http://www.dfcapital-investors.com Panmure Liberum Limited (Nomad and Broker) +44 (0) 203 100 2000 Chris Clarke William King Alma Strategic Communications +44 (0) 203 405 0235 Josh Royston Hilary Buchanan Hannah Campbell Sarah Peters About DF Capital DF Capital is a specialist independent bank providing award-winning commercial finance solutions and savings products to consumers and small businesses. Founded in 2016, the Group is headquartered in Manchester with over 130 people. DF Capitals commercial lending supports, distributors and manufacturers across sectors including Automotive, Leisure and Luxury. In 2020, the Group became a fully authorised bank and started offering a range of consumer savings products. The Group is listed on AIM on the London Stock Exchange under the ticker DFCH. For more information, please visit www.dfcapital.bank Chairs Statement It is with immense pride that I present my statement for the last financial year. 2025 marks my sixth year with the Company, having assumed the role of Chair in 2021. During this time, it has been truly rewarding to see how the firm has grown and developed, having achieved the status of a bank only four years ago. This year, we are pleased to report significant year-on-year increases in profit, continued loan book growth and the imminent launch of new products and services. Such accomplishments are remarkable, especially considering the early-stage nature of our bank. As a Board, we believe that DF Capitals journey since authorisation has been exceptional, marked by outstanding delivery and achievement of key milestones. This year, in addition to our strong financial performance, we have made great progress towards our ambitions to be a multi-product lender, supporting our dealer and manufacturer customers in a bigger way though lending product adjacencies. Our singular focus on reaching profitability quickly after authorisation has paid off. We have a strong financial base and accretive capital position that allows us to grow at meaningful levels year-on-year. We are now in a virtuous circle of scale, generating increasing levels of annualised earnings, which in turn creates capital unlocking further scale in our lending capacity. Our updated medium-term guidance, which does not require additional Tier 1 capital, sets the firm apart from many early-stage banks. We are now delivering double digit returns on equity that is firmly "baked in" to our financial performance and we are on track to achieving mid-to-high teens returns in the medium term. Whilst delivering on our financial objectives is undoubtedly critical, what I believe further sets DF Capital apart is the equal focus given to having a strong positive culture, where employees can thrive and demonstrate their passion to deliver the very best levels of customer service. As a Board, we do not put the financial successes down to good fortune. We believe it is the careful orchestration of a strong strategic focus, great culture, fabulous people and exceptional leadership that bring this level of performance to life. The team at DF Capital is passionate about its purpose, doing the right thing and giving back to the communities in which it operates. Throughout our workforce, the ambition and enthusiasm for what they do is palpable. My fellow Board members and I enjoy spending time with the DF Capital team, lending our support and providing constructive challenge to the management team to drive greater success. The Board believes DF Capital is an exciting growth story with a strong investment case. Its undoubted that we have many opportunities ahead of us to further scale the bank at attractive risk adjusted returns in specialised lending niches. The management teams focus on delivering exceptional service to our borrowers and retail depositors, through scalable and cost-efficient technology solutions sets it apart, demonstrated by the significant year-over-year growth in lending and strength of customer sentiment and the industry recognition and awards received. We believe the launch of our share buyback programme in January 2025 sends a clear message about the confidence we have in the Groups intrinsic earnings potential and runway for further growth. As a Board, we continue to believe the Groups share price undervalues its current and future prospects and given this material disparity we felt compelled to launch the programme. It is also undoubted that we have a high-quality team at DF Capital, but this level of performance is not possible without supportive shareholders, customers and wider stakeholders, to whom I extend my gratitude. Whilst the global macro-economic uncertainty and some negative business sentiments in the UK remain, Im optimistic about DF Capitals future prospects. We are at a point of transformation for the firm as we accelerate our multi-product lending ambitions and drive further scale across the bank, unconstrained by legacy issues or remediation activities felt by others in the sector. Mark Stephens Independent Non-executive Chair Chief Executive Officers Report 2024 has seen us continue to scale the bank in line with our growth plans. In particular, we are proud to have delivered our third consecutive year of profit, only four years since being authorised as a bank in 2020. During that time, we have seen more than a sevenfold increase in our loan book, supported by our retail savings proposition, and it is this scaling of lending that underpins our franchise and overall profit generation. The Group has delivered pre-tax profit of £19.1m being more than a four-fold increase on the prior year (2023: £4.6m), including a significant write-back of the provision we made last year relating to RoyaleLife and associated companies. The Groups adjusted pre-tax profit is £14.4m being a 55% year on year increase (2023: £9.3m). Tangible net asset value per share increased significantly during the period to 63.8p (2023: 55.6p). I believe the Groups performance in the year clearly demonstrates the successful delivery against our strategic objective to become a multi-product lender. Im extremely proud of the business we continue to build and the products and services we are bringing to life for our customers. Disciplined approach to growth drives strength of financial return The Group continues to operate in attractive niche lending markets, providing working capital solutions to dealers and manufacturers. Despite significant macro-economic headwinds, we have continued to grow our new loan origination both in the core inventory finance product and new product adjacencies. New loan origination reached £1.44bn up almost £250m on the prior year (2023

£1.2bn). The Groups loan book increased by almost 15% to £666m (2023: £581m). Whilst we remain focused on delivering double digit rates of loan book growth, we have not compromised on credit quality and have also maintained a disciplined approach to pricing, given the value and opportunity our lending products unlock for our customers. We have selectively increased our lending customers to 1,334 (2023: 1,182) and now support 88 (2023: 89) manufacturer partners, who meet our current credit standards and represent scalable ongoing relationships. Total credit lines pledged to customers were £1,142m (2023: £1,030m). The number of dealers in arrears held strong at 33 (2023: 30), with arrears classified as a payment of at least one day past due, representing less than 3% of the Groups entire dealer customer base. The Groups total arrears closed the year at £4.3m (2023: £14.0m), equal to 0.64% (2023: 2.4%) of total lending. Net Interest Margin (NIM) increased marginally through the year to 7.9% (2023: 7.6%), a significant driver of our year-over-year profit improvement. Our operating platform is significantly scalable and, whilst costs have increased overall given new hires, investments in technology and product capabilities, as well as general inflationary pressures, our cost-to-income ratio broadly held at 59% (2023: 58%). We expect this cost income ratio to continue to fall over the medium term as the Group scales its loan book, and expect this ratio to be less than 50% by 2028. The Groups adjusted return on equity, excluding the RoyaleLife write back, is on the cusp of exceeding 10% at 9.8% (2023: 6.7%). Continued momentum in core lending product builds market share In our core inventory finance product, the range of end-user markets we support remains stable and our portfolio continues to be well diversified across multiple sectors. Undoubtedly, it has been another unpredictable year from a macro-economic perspective, impacted further by the change in Government during the second half of the year. During the year we have grown our market share, demonstrated through the increase in new loan origination, which reached £1.44bn. It is clear in some sectors that the measures from the UK Governments budget caused a number of dealers to be more cautious in ordering and holding inventory over the festive period and winter months, traditionally a period where dealers would build up stock in readiness for the spring and the period where end-user sales ordinarily increase. This reticence has continued through the start of 2025, whilst some dealers consider the wider impact on their business of anticipated business rates increases, alongside an increase in employers national insurance contributions and an expectation of interest rates continuing to be elevated. Average stock days, which measures the average age of loans outstanding, was 145 days for the year remaining consistent with the prior year (2023: 145 days). We saw a modest reduction during Q4 2024 to 140 days (Q4 2023: 148 days). Overall, we are pleased with where our loan book closed the year at £666m, up 15% on 2023. We continue to make significant strides forward in the motorhomes and caravans, marine, motorcycles and automotive sectors, where we have grown our market share materially during the year despite some of the market challenges. Motorhome and caravan end-user demand has been particularly high during the second half of the year given the better weather conditions, encouraging people to seek out domestic holidays. This increase in demand and a rebalance of production by manufacturers has allowed dealers to adjust their stock levels to better align to anticipated demand. Elevated end-user demand for motorhomes and pre-orders saw an unprecedented number of sales during the first half of the year, reaching more normalised levels after the summer months. In the caravan tourer market, much of the year has been characterised by stock overhang from prior years, with manufacturers adjusting production to better match dealer orders meaning that fewer new units have been manufactured during the year. End-user demand was slower in the first half having been adversely impacted by poor weather conditions. The holiday home and lodge sector has continued to work through more challenging times, caused by severe weather conditions and the aftermath of the failure of RoyaleLife. That being said, having now adjusted production levels, sales are increasing as park operators fill stock gaps and rebalance their existing stock towards larger units in line with demand. The market has seen some shift to short-term holiday rental bookings versus sales of units

the Groups flexible lending products ably help unlock this opportunity for the park operators. Additionally, there continues to be a healthy level of activity among those with sizeable pension pots looking to make investments in prefabricated holiday homes to enjoy during retirement. Like other sectors, marine manufacturers have also adjusted their production levels to align better with end-user demand, particularly at the leisure craft / smaller boat end of the market. Larger boats continue to see strong demand. Generally, end-users in these leisure focused markets are resilient to the impact of elevated interest rates and cost of living pressures, leaving dealers buoyant about prospects in 2025 and beyond. Whilst growing from a low base, the automotive sector has seen consistent levels of demand across higher value cars, with more challenging times relating to conventional and electric vehicles in particular. This more challenging landscape has been mirrored in the transport sector, particularly the light commercial vehicles space where some market participants have ran significant discount campaigns, adding pressure to our distributor partners who operate in this market. Government policy on electric vehicles has also materially impacted demand for new EVs more generally. The industrial sectors, which is predominantly plant and machinery, correlates closely with government plans of major