Latest news with #MitsubishiHCCapitalUKPLC
Yahoo
2 days ago
- Automotive
- Yahoo
Novuna reports £4.65bn in record new business as profits hold steady
Mitsubishi HC Capital UK PLC, trading in the UK under the Novuna brand, has reported a resilient financial performance for the year ended 31 March 2025, with record levels of new business at £4.65 billion, a 6.3% increase year-on-year. Novuna is the UK's fifth largest asset finance provider by net leasing, according the Asset Finance Policy UK top 50 in 2024. Despite a 9.6% dip in pre-tax profit to £120.6 million, the Group's net earning assets surged to £8.6 billion, underscoring its strong asset base and prudent growth strategy. The company, which serves over 1.3 million customers and ranks among the UK's top ten providers of consumer, vehicle, and asset finance, maintained its reputation for high-quality lending. The bad debt ratio remained low at 0.32% of total assets, reflecting continued discipline in credit underwriting and robust affordability assessments. This embedded content is not available in your region. Novuna Business Finance, a UK non-bank asset finance provider, recorded a 7.2% increase in new business volumes, rising to £760.7 million, and delivered a pre-tax profit of £22.9 million. This was driven by a 20% growth in its Commercial Broker business and expansion of direct customer channels. The business demonstrated its continued support for UK SMEs, achieving a 6.7% increase in its lending portfolio to £1.9 billion, while its sustainable project finance segment—its fastest-growing new channel—surpassed £100 million in outstanding balances. Stocking facilities also approached a milestone of £300 million, highlighting a diverse range of finance offerings. Meanwhile, Novuna Business Cash Flow, the division focused on invoice finance and working capital, achieved a pre-tax profit of £1.8 million. With net earning assets up 4.8% to £136.6 million, the unit reported that large corporates now account for over half its portfolio, marking a notable shift in customer base and revenue mix. Novuna Vehicle Solutions expanded its fleet size from 109,000 to over 113,000 vehicles and grew fleet value by 8.9% to £2.1 billion. Pre-tax profits were supported by new contract wins with major clients including Royal Mail, Schneider Electric, Centrica, and Network Rail. New business volumes increased to £884.1 million, a 4.2% rise from the previous year. Novuna also advanced its offering of end-to-end, fuel-agnostic decarbonisation solutions, positioning itself as a key partner in helping UK corporates meet their net zero goals. Novuna Consumer Finance, a provider of retail point-of-sale and personal lending in the UK, reported a pre-tax profit of £38.9 million, up £9.5 million from the previous year. New business volumes grew 8.0% to £2.5 billion, benefiting from improved margins and the addition of over 600 new retail partners, including high-profile names like Specsavers and Vitality. The Group's European leasing subsidiary, MHC Mobility, generated a £15.8 million profit from continuing operations, led by strong performances in the Netherlands and Germany. However, the Group also reported £11.5 million in losses from discontinued operations in Czech Republic, Slovakia, and Hungary, reflecting a strategic exit from underperforming regions. MHC Mobility Benelux's expansion into Luxembourg during the year further bolstered its regional presence, while net earning assets across the subsidiary rose by 6.6% to £798.6 million. Elsewhere, the European Vendor Finance division posted a profit of £1.1 million, up from £0.5 million, with business volumes reaching £129.8 million and geographic coverage expanding into Iceland, now spanning 25 countries. Commenting on the results, Robert Gordon, CEO of Mitsubishi HC Capital UK PLC, said: 'Despite the headwinds of the past year, Mitsubishi HC Capital UK PLC has delivered a strong and resilient performance. Our unwavering focus on delivering value-added products and exceptional service across both commercial and consumer markets has driven record levels of new business, while also deepening relationships with existing customers. "Through strategic investments in our people and technology, and by exiting underperforming European branch operations, we have strengthened our operational efficiency and upheld a high-quality portfolio. With margin pressures easing and a growing, diverse funding base, the Group is well-positioned for sustainable, long-term growth.' "Novuna reports £4.65bn in record new business as profits hold steady" was originally created and published by Leasing Life, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Business Wire
2 days ago
- Business
- Business Wire
Mitsubishi HC Capital UK PLC (Trading as Novuna) Reports Profits of £120.6M With Record New Business Volumes
LONDON--(BUSINESS WIRE)-- Commenting on these results, Robert Gordon, CEO of Mitsubishi HC Capital UK PLC, said: 'Despite the headwinds of the past year, Mitsubishi HC Capital UK PLC has delivered a strong and resilient performance. Our unwavering focus on delivering value-added products and exceptional service across both commercial and consumer markets has driven record levels of new business, while also deepening relationships with existing customers. 'Through strategic investments in our people and technology, and by exiting underperforming European branch operations, we have strengthened our operational efficiency and upheld a high-quality portfolio. With margin pressures easing and a growing, diverse funding base, the Group is well-positioned for sustainable, long-term growth. Winning and retaining customers will continue to be at the heart of our success.' Group profits and record new business volumes Mitsubishi HC Capital UK PLC, trading as Novuna in the UK, revealed record levels of new business with pre-tax profits on continuing operations of £120.6m, with net earning assets reaching £8.6bn. New business reached £4.65bn, a 6.3% increase on the prior year, winning some of the UK's largest contracts including Vitality, Specsavers, Royal Mail and Schneider Electric. The Group, a top ten provider of consumer, vehicle and asset finance with over 1.3 million customers, maintained a high-quality portfolio across commercial and consumer sectors, with bad debt at just 0.32% of total assets - only marginally higher than last year from rigorous credit underwriting and improved affordability assessments. Mitsubishi HC Capital UK PLC diversified its capital funding sources with public issues in Asia, the UK and Europe during 2024/25, attracting new funders. Each business division across the UK and Europe returned pre-tax profits during the year with a total of £9.4bn of assets under management. Novuna Consumer Finance As a top 10 provider of retail point of sale finance and personal lending through its loan channel Novuna Personal Finance, it posted an annual pre-tax profit of £38.9m, up £9.5m on the previous financial year. New business volumes grew by 8.0% on the prior year up to £2.5 billion, coupled with the recovery of new business margins during 2024/25. It welcomed 600+ new retail partners, including Vitality and Specsavers, while expanding non-brokered credit solutions through its membership and annual fee renewal credit facilities for golf clubs, football clubs and independent schools. Novuna Vehicle Solutions The sixth largest leasing company in the UK expanded its fleet during 2024/25 from 109,000 to over 113,000 vehicles. Fleet value grew by 8.9% YoY to £2.1bn, with the business advancing customers' sustainability goals through end-to-end, fuel agnostic decarbonisation solutions. Delivering tailored solutions to customers including Amey, Centrica, Network Rail and Kier and new customer wins including Royal Mail and Schneider Electric, it saw new business volumes rise by 4.2%, from £848.2m to £884.1m. MHC Mobility The European leasing subsidiary of Mitsubishi HC Capital UK PLC, which operates across seven European countries, exceeded expectations in the Netherlands and Germany, recording a pre-tax profit on continuing operations of £15.8m. Pre-tax losses of £11.5m were recognised in relation to discontinued operations in Czech Republic, Slovakia, and Hungary. During the year, MHC Mobility Benelux expanded into Luxembourg, strengthening its presence in the region alongside existing operations in Belgium and the Netherlands as Net earning assets grew across MHC Mobility by 6.6% from £749.1m to £798.6m. Novuna Business Finance As the UK's largest non-bank asset finance provider serving SMEs and larger corporations, it achieved a profit before tax of £22.9m. New business volumes grew by 7.2% up to £760.7m, driven by a 20% increase in Commercial Broker business together with an 8.9% increase in direct routes to market. The core proposition of supporting UK SMEs to develop and grow was delivered through a 6.7% portfolio growth to £1.9 billion. Stocking facilities nearly reached a £300m milestone and sustainable project finance, the fastest growing new channel, surpassed £100m balances outstanding. Novuna Business Cash Flow The business unit, providing cash flow finance solutions to businesses of all sizes across several sectors in the UK, achieved a pre-tax profit of £1.8m in 2024/25 with a 4.8% increase in its net earning assets up to £136.6m. Large corporate clients represented over half of the portfolio for the first time. This growth, coupled with diversification of its revenue streams led to a strong performance with the business offering more comprehensive cash flow solutions. European Vendor Finance The provider of tailored vendor finance for specialist assets generated pre-tax profits of £1.1m, up from £0.5m last year. New business volumes increased by £7.2m, reaching £129.8m, achieved through a focus on key group and global accounts. Expanded geographic presence into Iceland, now transacting across 25 countries, with 52% of net earning assets in Europe, up by 6% YoY. Financial Results Mitsubishi HC Capital UK PLC's full annual report for FY 24/25 can be found at: Notes to Editors: The figures above represent continuing operations. The prior year comparatives have been re-presented to exclude discontinued operations. The loss after tax on discontinued operations was £10.3m (2024: £8.4m). About Mitsubishi HC Capital UK PLC Mitsubishi HC Capital UK PLC is a leading UK based financial services company, authorised and regulated by the Financial Conduct Authority (FCA). We have over 2,300 employees, £8.6bn of Net Earning Assets and over 1.3 million customers across our business divisions and subsidiaries: Consumer Finance, Vehicle Solutions, MHC Mobility, Business Finance, Business Cash Flow, and European Vendor Finance providing innovative finance solutions to enable consumers and businesses to grow and prosper. We are a wholly owned subsidiary of Mitsubishi HC Capital Inc., strengthening our relationship with one of the world's largest and most diversified financial groups, with over 11trn yen (£57bn) of assets.
