Novuna Reports Robust Growth with £120.6 Million Profit and Record New Business Volumes Amid Strategic Transformation
Mitsubishi HC Capital UK PLC, trading under the brand Novuna, has reported strong financial results for the year ending March 2025. Demonstrating both resilience and agility amid economic headwinds, the company delivered a pre-tax profit of £120.6 million from continuing operations. This robust performance was driven by record levels of new business, totaling £4.65 billion—an increase of 6.3% compared to the previous financial year.
With net earning assets rising to £8.6 billion, the company’s diverse portfolio of consumer and commercial finance products continued to serve over 1.3 million customers across the UK and Europe. Despite external challenges in the broader financial services market, Novuna’s strategic priorities, operational discipline, and customer-first philosophy enabled it to outperform expectations across all core business divisions.
CEO Perspective: A Year of Resilience and Opportunity
Robert Gordon, CEO of Mitsubishi HC Capital UK PLC, reflected on the results by emphasizing the Group’s enduring commitment to quality, customer service, and strategic clarity:
“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. Winning and retaining customers will continue to be at the heart of our success.”
Financial Performance: Growth Across the Board
Every business division within Mitsubishi HC Capital UK PLC reported pre-tax profits in FY2024/25. In total, the Group now manages £9.4 billion in assets across its operations. Importantly, the company maintained a strong credit quality profile, with bad debt levels held to just 0.32% of total assets—only slightly higher than the previous year, a result of prudent underwriting and strengthened affordability checks.
To support its continued growth, the company expanded its capital funding base, launching public debt issues across Asia, the UK, and Europe. This broadened access to new investors and increased financial flexibility, while mitigating reliance on any single funding source.
Novuna Consumer Finance: Lending Growth and Retail Expansion
A standout performer within the group, Novuna Consumer Finance delivered a pre-tax profit of £38.9 million—up £9.5 million year-over-year. New business volumes increased by 8.0%, reaching £2.5 billion, bolstered by the recovery of new business margins during the fiscal year.
The consumer lending arm welcomed over 600 new retail partners, including notable names such as Specsavers and Vitality. Additionally, Novuna made strategic advances into non-brokered credit channels. These included expanding credit facilities for memberships and renewals in the leisure and education sectors, such as golf clubs, football clubs, and independent schools—enhancing its presence in niche consumer markets.
Novuna Vehicle Solutions: Scaling Fleets and Supporting Sustainability
Novuna Vehicle Solutions, the sixth-largest vehicle leasing company in the UK, also recorded a solid year of growth. The company expanded its fleet size from 109,000 to over 113,000 vehicles, while fleet value rose 8.9% year-over-year to £2.1 billion.
The division played a pivotal role in advancing customers’ sustainability ambitions through comprehensive, fuel-agnostic decarbonisation strategies. It offered end-to-end fleet solutions tailored to major clients such as Amey, Network Rail, Kier, and Centrica. New contracts with high-profile organisations including Royal Mail and Schneider Electric helped drive a 4.2% rise in new business volumes, which grew from £848.2 million to £884.1 million.
MHC Mobility: Growth in Core European Markets
MHC Mobility, the Group’s European leasing subsidiary operating in seven countries, exceeded expectations in key territories, especially in the Netherlands and Germany. It posted pre-tax profits of £15.8 million from continuing operations.
However, the company recognized pre-tax losses of £11.5 million related to discontinued operations in the Czech Republic, Slovakia, and Hungary—markets that have now been exited as part of the company’s strategic realignment.
A notable development was the expansion of MHC Mobility Benelux into Luxembourg, enhancing its footprint in the region alongside existing operations in Belgium and the Netherlands. Across the business unit, net earning assets rose by 6.6%, from £749.1 million to £798.6 million, reflecting solid performance in core Western European markets.
Novuna Business Finance: Enabling SME Growth
As the UK’s largest non-bank asset finance provider, Novuna Business Finance delivered a strong performance, with a pre-tax profit of £22.9 million. The business reported a 7.2% growth in new business volumes, which climbed to £760.7 million.
This growth was underpinned by a 20% surge in Commercial Broker business and an 8.9% increase in direct channels. The division’s ongoing support for UK SMEs led to a 6.7% increase in portfolio value, now totaling £1.9 billion. A milestone was nearly reached with its stocking facilities approaching £300 million, while its fastest-growing product segment—sustainable project finance—surpassed £100 million in outstanding balances.
Novuna Business Cash Flow: Supporting Liquidity for UK Enterprises
This business unit, which provides tailored cash flow finance solutions across multiple UK sectors, recorded a pre-tax profit of £1.8 million and a 4.8% rise in net earning assets, which reached £136.6 million.
Notably, for the first time, large corporate clients comprised more than half of the total portfolio. This shift, along with diversification of revenue sources, positioned the business for future scalability. Novuna Business Cash Flow enhanced its reputation as a reliable partner for working capital solutions in an increasingly complex economic landscape.
European Vendor Finance: Geographic Expansion and Account Growth
European Vendor Finance, focused on delivering bespoke financing for specialist assets, reported a pre-tax profit of £1.1 million—up from £0.5 million the previous year. New business volumes increased by £7.2 million, reaching a total of £129.8 million.
Growth was largely driven by the team’s strategic focus on key global accounts and geographic expansion. Notably, the unit extended its operations into Iceland, growing its footprint to 25 countries. Over half (52%) of its net earning assets now reside in European markets, representing a 6% year-over-year increase.
Strategic Agility for a Transforming Finance Landscape
Mitsubishi HC Capital UK PLC’s impressive results across all business lines underscore its strategic agility, disciplined execution, and customer-centric approach. By divesting underperforming operations and deepening its investment in digital infrastructure and ESG-aligned financing, the Group is preparing for long-term value creation.
As economic conditions stabilise and market confidence improves, Novuna is expected to leverage its momentum to scale new heights. With a diversified business model, broad customer base, and strong governance, the company appears well-positioned for sustainable growth well into the future.
