Strong new business volumes and a one-off gain from the revaluation of the Group’s investment in green energy provider GRIDSERVE resulted in record pre-tax profits for Novuna Business Finance.
The company, which specialises in providing asset finance solutions for SMEs and larger corporations across the UK, achieved pre-tax profits of £66.2m in FY22/23, up 165% from the previous year.
Leveraging its well-established routes to market, including broker, direct and manufacturer and dealer relationships, Novuna Business Finance achieved a 22% increase in new business, totalling £999.3m and benefitted from a one-off gain of £44.1m following the revaluation of a strategic investment in GRIDSERVE’S electric vehicle charging infrastructure to deliver a record performance.
Novuna Business Finance, which provides hire purchase, finance lease solutions, stocking finance and block discounting solutions for businesses, achieved an 8% increase in net earning assets, totalling £1.7billion this year which propelled its standing to become the third largest asset finance provider in the UK.
Despite the challenges posed by rising funding costs and an unfavourable economic climate, the company remained committed to its growth objectives by investing in diversified funding provisions, which accounted for 20% of new business volume.
Novuna Business Finance’s expanding Project Finance proposition, forged partnerships with SMEs, Community Energy Groups, and Fund Managers to drive revenue growth for the Group leveraging wider market opportunities in the sustainability sector.
The business continued to enhance its support for customers, making significant investments in cutting edge technology, accelerating digital onboarding and enabling instant funding decisions. The introduction of a revolutionary workflow automation tool for manufacturers and dealers resulted in over £4m in additional revenue.
Geoff Maleham, Managing Director at Novuna Business Finance, said: “Against a backdrop of rising cost of funds and a challenging economic climate, our business has achieved remarkable success, driven by unprecedented levels of new