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.

Business finance

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.

Vehicle finance

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.

Consumer finance

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.

European expansion and restructuring

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.

CEO commentary

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.”