Mitsubishi HC Capital UK PLC (trading as Novuna) reports profits of £126m with record new business volumes

Wednesday 12th June 2024

  • Mitsubishi HC Capital UK PLC, trading as Novuna, posted pre-tax profits of £126m in FY23/24
  • The Group increased new business volumes by 1% YoY to £4.5bn, winning some of the industry’s largest contracts with net earning assets reaching £8.2bn
  • The financial provider prioritised investment in digital credit decisioning platforms to drive profitability and maintain portfolio quality

12 June 2024 – Growth in new business volumes has propelled Mitsubishi HC Capital UK PLC’s pre-tax profits to £126m, an 8% YoY increase1. The business, trading as Novuna within the UK, saw new business volumes reach £4.5bn, increasing 1% on the prior year despite challenging economic conditions.

Mitsubishi HC Capital UK PLC, a leading UK financial services provider, employing over 2,250 staff in the UK and Europe and serving more than 1.3 million customers achieved the results despite a very flat economy, high interest rates and high inflation.

In response to these pressures, the Group focused on delivering products with high-quality customer service underpinned by investment in enhanced credit decisioning, driving new business opportunities whilst maintaining long-term relationships to drive profitability.

The increase in new business to record levels has come while maintaining the Group’s track record of building a high-quality portfolio. Despite the challenging economic landscape, the Group reported a bad debt charge as a percentage of total assets of just 0.3%. This was achieved through rigorous credit underwriting, continuous improvements to affordability assessments and enhanced investment in customer servicing.

Alongside these investments, the Group has continued to diversify its capital funding sources with its first public issue in Australia and a further public issue in Europe during 2023/24. This strategy has attracted new funds to support long term growth and the Group plans to further increase public bond issuance in 2024/25.

Key Financial Results



Profit before tax (PBT)


£160.8m (including one off gain of £44.1m relating to Mitsubishi HC Capital UK PLC’s investment in GRIDSERVE Holdings Limited.)

PBT growth



New business volume



Net earning assets



Pre-tax return on total assets



Bad debt charge as a % of total assets



Cost / gross profit ratio 



Effective tax rate 



Post-tax return on equity 



Robert Gordon, CEO of Mitsubishi HC Capital UK PLC, said:

“Despite a difficult trading environment, it’s been an exceptional year for Mitsubishi HC Capital UK PLC. Our commitment to delivering for our customers is demonstrated by the increase in new business to record levels, and our ability to grow and retain our existing customer base, against a background of high interest rates and prolonged instability.

“At the heart of our success is our commitment to invest in our people and the technology to support our customers. Building long-term sustainable relationships that can withstand challenging market environments, whilst maintaining a high-quality portfolio.”

Business unit performance

Each of Mitsubishi HC Capital UK PLC’s business divisions across the UK and Europe, returned pre-tax profits during the year with a total of £8.8bn of assets under management.

Novuna Consumer Finance, one of the UK’s largest consumer lending providers of retail point of sale finance and personal loans, posted an annual pre-tax profit of £29.4m, up £16.8m on the previous financial year. This increase was driven by the recovery of new business margins while maintaining portfolio quality in the face of high funding costs whilst new business volumes closed the year at £2.3 billion, up by 3.7% on the prior year.

The business, which serves more than 1.3 million customers, welcomed over 500 new retail partners, including Wickes. The business also diversified its offering to meet the demand for non-brokered solutions by introducing membership and annual fee renewal credit facilities in new markets for golf clubs, independent schools and football clubs.

Novuna Personal Finance delivered a strong performance despite high levels of competition and supressed demand for unsecured borrowing in a contracted market to remain a top 10 provider of personal loans in the UK. New business volumes reduced marginally from the prior year, down from £0.9bn to £0.83bn.

Operating over 109,000 assets in the UK, Novuna Vehicle Solutions experienced a 7.6% decrease in profit before tax to £62.8m, although revenues increased 17.7% to £831.4m. This growth was driven by a larger funded fleet, increased rates charged due to rising costs, and higher sales of operating assets. The used vehicle market weakened due to increased new vehicle supply, resulting in lower disposal profits per unit yet the market remained strong compared to
pre-Covid-19 levels.

With a fleet valued at £1.9 bn, up 11% year on year, Novuna Vehicle Solutions increased its standing as the 6th largest leasing company in the UK up one position on the prior 12 months. The business also built on a market leading end-to-end decarbonisation solution for businesses, expanding investment into alternative fuel solutions for HGVs and specialist equipment.

MHC Mobility recorded a pre-tax profit of £10.3m, which is consistent with the prior year (on a fully annualised basis). Profits on disposals contributed to the results, with the European second-hand car market remaining strong for most of the year. New business volumes amounted to £363m, a 35% increase compared to the previous 12 months, helped in part by improving delivery times of new vehicles.

Novuna Business Finance, which provides asset finance to SMEs and larger corporations across the UK, achieved a 5.9% increase in profit before tax to £23.4m, excluding a £44.1m one-off gain from the GRIDSERVE Holdings Limited investment last year. Pricing increases on new business and a focus on asset growth contributed to a 23.1% increase in revenue and a decrease in bad debt charge as a percentage of total assets compared to the previous year (0.13% compared to 0.30%).

Novuna Business Cash Flow delivered a 24.1% increase in profit before tax, reaching a record £3.6m in 2023/24 on total assets of £308m. The business unit saw growth with larger corporate clients, who now represent almost half of the portfolio. This growth, coupled with diversified revenue streams through third-party leads and invoice generator product usage, offset supressed demand for invoice finance posed by improved SME liquidity due to government Covid-19 intervention funding.

European Vendor Finance, which provides vendor finance for specialist assets, generated pre-tax profits of £0.5m, down from £2.1m last year. The reduction was driven by rising funding costs and a corresponding squeeze on new business volumes and margins. New business volumes remained strong at £123m, achieved through a focus on key group and global accounts, as well as an expanded geographic presence with the addition of Denmark which saw European Vendor Finance transact across 24 countries.

The introduction of new product offerings and a diversified product base has ensured that the unit has been able to keep portfolio quality high, with bad debt charge as a percentage of assets falling to 0.02% in 2024 compared to 0.04% the previous year.

Mitsubishi HC Capital UK PLC’s full annual report for FY 23/24 can be found at:


Notes to Editors:

1 Excluding the one-off PBT gain of £44.1m relating to Mitsubishi HC Capital UK PLC’s investment in GRIDSERVE Holdings Limited.


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 2,250 employees, £8.2bn of Net Earning Assets and over 1.3 million customers across our business divisions: Consumer Finance, Vehicle Solutions (includes 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.