Hitachi Capital UK has recorded a 5.8% year-on-year growth in profits to £123m (€134m) in the twelve months up to 31 March 2019, its tenth year of successive growth.
Hitachi Business Finance, the financial services arm most responsible for providing asset finance, recorded profits of £21.5m, 24% of overall profits. The business unit’s overall share of the market grew to 2.3% for the year ending March 2019 compared to 2% in the previous year. Profit before tax improved to £21.5m, a 6.4% year-on-year rise.
For the first time, Hitachi Capital UK ended the year with net earning assets of more than £5bn (£5.6bn, a 16% year-on-year rise).
Robert Gordon, chief executive officer of Hitachi Capital UK, said: “These outstanding results are the culmination of 10 years of sustainable growth, where Hitachi Capital UK has consistently outperformed the average growth of many of the leading companies in the UK. Despite the challenging financial climate of the last year, we’ve continued to grow both profits and new business in our core UK market, while also expanding our footprint in Europe. We now operate in 17 countries, writing over £300m of new business outside of the UK.
“In a hugely competitive marketplace, we continue to invest in new technology, creating customer-facing platforms that make it easier and faster to do business. Our new Invoice Finance platform FLi is a great example, as we now on-board customers in 24 hours.”
Franchise Finance was acquired by Hitachi Capital Business Finance in June 2018, and has since rebranded to Hitachi Capital Franchise Finance.
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By GlobalDataHitachi Capital Business Finance funded nearly £958m for the 2018/19 year, with just over half (53%) of business from brokers, 22% from inventory finance and the remaining 25% through block, vendor/manufacturer relationships and Franchise Finance.
Hitachi Capital generated £4bn of new business in FY18/19, 14% year-on-year-increase. Notable deals in this time include the recent announcement of a £136m contract to manage Network Rail’s owned and leased road vehicle fleet.
Hitachi Capital Business Finance won SME Champion of the Year at the 2018 Leasing Life Awards.