- Distribution Finance said it expected to receive shareholder approval on a plan to carry out reorganisation steps that were required for UK authorities to consider its application for a banking licence.

'Following feedback from the PRA in relation to the firm's application.. the company will take certain reorganisation steps in respect of parts of the existing share capital within the group, which will be carried out before any final authorisation decision will be considered by the Prudential Regulation Authority,' the company said.

The plan, set to be unveiled to shareholders at the end of August, would include the buyback and cancellation of certain existing shares and issuance of new shares held by managers and former managers totalling less than 5% of the company's issued share capital, the company said.

The company expected to receive shareholder backing for these reorganisation proposals at a general meeting to be held in early September, and also expected that the reorganisation steps would be completed in full by mid-September 2020.

'Following this, the group expected to receive notification of the PRA's decision in respect of its application by the end of September,' it added.

Commenting on a recent performance, the company said it was 'now seeing greater forward requests from both its dealers and from the company's manufacturer partners to support the flow of new stock.'

The loan book had continued to perform positive, with lower arrears and forbearance than had previously been reported at 31 December 2019 and 12 June 2020.

At 8:00am: [LON:DFCH] share price was +1p at 40p

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