Monday 13rd Aug 2018
Profits before tax were £116.4m for FY 17/18 – outpacing average for FTSE 250
1% growth in profits compared to FY 16/17 – the ninth year of successive growth
£3.5bn of new business secured in previous 12 months across five divisions
Hitachi Capital (UK) PLC now employs more than 1,200 people across its UK and European sites
13 August 2018 – Hitachi Capital (UK) PLC publishes its financial results for FY 17/18, announcing a significant rise in group profits, strong performance across its five key business units, outpacing the average profit for FTSE 250 companies, according to the latest published results.
For the 2017/18 financial year, Hitachi Capital (UK) PLC reports profit before tax (PBT) of £116.4m, a rise of 7.1% over the previous financial year. Hitachi Capital (UK) PLC’s PBT is 8.4% higher than the average PBT among FTSE 250 companies of £106.9m, putting the business firmly among the UK’s biggest and best performing companies.
This marks the ninth successive year the company has increased profits and represents more than six times the amount of profit before tax generated in the 2009/10 financial year (PBT 09/10: £18.8m).
On a group basis, Hitachi Capital (UK) PLC generated £3.5bn of new business and ended the year with net earning assets of £4.8bn – a rise from £3.0bn and £4.1bn in financial year 2016/17, respectively.
Business unit performance
Hitachi Capital Consumer Finance business unit, which includes retail, motor and personal loans, generated profit before tax of £72.8m, or 62.5% of group profits. As one of the top 10 largest lenders in the country, the business unit lent more than £2.3bn to over 700,000 customers during this period, and has a 20% market share in retail point-of-sale finance.
Hitachi Capital Vehicle Solutions, which provides vehicle funding and fleet management services, generated profit before tax of £24m. The business unit operates more than 67,600 assets, valued at £882m and is the only UK vehicle funding and fleet management provider to offer a comprehensive range of assets, from cars, to HGVs and plant machinery.
Pre-tax profit in Hitachi Capital Business Finance, a business asset finance provider, rose 4.9% to £21.4m while its asset portfolio grew to above £1bn. During the year, Hitachi Capital Business Finance became the first funder to offer the British Business Bank’s Enterprise Finance Guarantee for Asset Finance, allowing the business unit to support the growth of more British businesses.
Hitachi Capital Invoice Finance generated record new business levels with an 18% increase in client numbers. A significant investment in technology has been made during 2017/18, which will be realised in 2018/19. As a result of these investments, Hitachi Capital Invoice Finance recorded a loss before tax of £2.1m in 2017/18.
Hitachi Capital European Vendor Solutions was established as a dedicated business unit with a branch office in the Netherlands to support expansion into European markets and provide vendor finance solutions to Hitachi and Mitsubishi group companies. It wrote £242m of business in 2017/18 and is active in 12 European countries.
Commitment to service and developing talent
Hitachi Capital (UK) PLC’s financial performance is attributable in part to its goal of providing outstanding customer experience. Hitachi Capital (UK) PLC has earned consistently high scores for customer service across key metrics, particularly within the consumer finance sector.
Hitachi Capital Consumer Finance holds a 98% rating on independent customer feedback platform Feefo, a net promoter score (NPS) of 67 as measured by the Institute of Customer Service, and scored 94 out of 100 for customer satisfaction in the ICS UK Customer Satisfaction Index. These scores are higher than many high street banks, other lenders and major household name retailers.
Hitachi Capital (UK) PLC’s growth been complemented with an investment in the firm’s employee brand and a focus on developing exceptional people, through continual personal development and a new mentoring services programme.
With over 1,200 employees across six locations in the UK and the Netherlands, the business’s efforts have resonated with staff, with 89% of employees stating they would recommend Hitachi Capital (UK) PLC as a great place to work.
Robert Gordon, CEO of Hitachi Capital (UK) PLC, commented:
“These are a strong set of results and are testament to the hard work and dedication of our teams throughout the UK and Europe.
“Hitachi Capital (UK) PLC is now ranked among the fastest growing financial services firms in terms of sales growth, while our profitability makes us one of the top performers not only in the industry, but also when compared to some of the UK’s biggest and most well-known companies.
“It’s particularly pleasing to demonstrate consistent, long-term growth within a challenging and competitive sector, and against a backdrop of general economic uncertainty.
“The processes, systems and strategies we’ve put in place provide a solid foundation for continued growth in the years to come.”