Digital transformation pays off for consumer finance business
Financial solutions provider Hitachi Capital (UK) PLC – which includes Leeds-based Hitachi Capital Consumer Finance – has recorded strong financial results despite the impact of COVID-19.
Publishing its annual results, the business reports pre-tax profits of £104m and £3.3bn of new business.
Hitachi Capital Consumer Finance generated profit before tax of £60.2m for FY20/21. It also recorded £1.1bn worth of lending to 3,200 UK high street and online retail partners and an 87% increase in lending volumes via e-commerce channels.
Robert Gordon, CEO of Hitachi Capital (UK) PLC, said: “Amid the backdrop of heightened uncertainty, we have continued to invest in our business and our people; during the past year, we’ve implemented technological improvements to drive operational efficiencies as well as providing funding to support sustainable energy projects addressing climate change.
“The business experienced significant increased demand for communication and support from our customers over the past 12 months. In turn, we’ve increased our headcount and did not participate in furlough programmes during the COVID-19 crisis.
“We’ve seen continued momentum in new business volumes during the first quarter of 2021/22 aligned to an upturn in consumer confidence and pent up demand.
“Hitachi Capital (UK) PLC is well-diversified across commercial and consumer sectors with an expanding portfolio to tackle climate change.
“With a high level of liquidity, our business is well placed to grow in this financial year as the economy gathers pace in the months ahead.”
Vincent Reboul, managing director at Hitachi Capital Consumer Finance, added: “Our agile response to the pandemic, including accelerating our strategic investment in digital channels in order to adapt to the surge in demand via e-commerce channels, enabled us to continue to deliver against our strategic priorities and achieve some very impressive results.
“Cementing our position as one of the top 10 providers of personal loans in the UK, HCCF defied the sharp decline in demand for unsecured lending to continue to gain market share in a competitive sector where rates remain at historic low levels.
“With a strong recovery in consumer spending expected during the coming months, our business is primed for sustained growth to benefit from an enhanced multi-channel proposition moving forwards.”