PACCAR FINANCIAL PLC (04160861): Corporate Intelligence Profile
Executive Summary
PACCAR FINANCIAL PLC (Company Number [04160861](/company/04160861)) serves as the UK financial services arm for PACCAR Inc, underwriting retail finance leases, hire purchase agreements, operating leases, and dealer wholesale flooring facilities for commercial vehicles manufactured by DAF Trucks NV. The company reported a 1.1% increase in turnover to £127.42m in 2024, generating profit before tax of £12.60m and maintaining net assets of £191.01m. Solvency and going concern status rely on written financial support from immediate parent PACCAR Financial Holdings Europe B.V. to offset net current liabilities of £52.70m created by short-term intercompany financing lines.
What the Numbers Show: Solvency, Working Capital, and Earnings
Under statutory filings prepared in accordance with FRS 102 and the Companies Act 2006, PACCAR FINANCIAL PLC's primary revenue streams comprise earned finance charges on retail contracts, operating lease rentals, and proceeds from remarketed used trucks.
In 2024, turnover reached £127.42m, up from £125.99m in 2023, driven by growth in finance lease income to £56.90m (2023: £52.70m). Income from used truck sales remained steady at £49.60m (2023: £49.40m), while operating lease income contracted 12.7% to £20.80m (2023: £23.90m). Profit before tax dropped 21.9% to £12.60m (2023: £16.12m), reflecting compressed gross margins and net finance costs of £22.32m (£32.23m finance expenses offset by £9.91m finance income).
| Metric | 2020 (UK Standalone) | 2021 (UK Standalone) | 2024 (UK Standalone) |
| :--- | :--- | :--- | :--- |
| Turnover | £69.76m | £68.87m | £127.42m |
| Profit Before Tax | £7.26m | £13.28m | £12.60m |
| Profit After Tax | £6.23m | £14.91m | £8.67m |
| Fixed Assets | £88.78m | £82.01m | £43.30m |
| Current Assets | £209.99m | £206.63m | £695.06m |
| Current Liabilities | £288.70m | £281.76m | £295.65m |
| Long-Term Liabilities | £219.81m | £205.05m | £251.71m |
| Net Assets | £136.50m | £152.99m | £191.01m |
| Employee Count | 53 | 53 | 48 |
Note on public record data: Filing records for 2022 and 2023 deposited on the public register reflect consolidated US parent group disclosures ($35.13bn turnover in 2023; $28.82bn in 2022), reflecting group reporting practices where international holding structures file consolidated accounts alongside subsidiary returns. Standalone entity figures above reflect verified UK entity filings.
The company's balance sheet reflects current assets of £695.06m against current liabilities of £295.65m. Current assets are weighted toward retail finance receivables (£242.52m in trade debtors). Current liabilities include £276.54m owed to fellow group undertakings (primarily PACCAR Financial Europe B.V., PACCAR Inc, and PACCAR Financial Corporation), resulting in net current liabilities of £52.70m at 31 December 2024 (up from £23.50m in 2023).
Long-term liabilities stood at £251.71m, consisting of unsecured intercompany loans maturing between 2026 and 2028 with fixed interest rates between 0.36% and 5.25%.
Directors and Ownership Structure
PACCAR FINANCIAL PLC is a wholly owned subsidiary of PACCAR Financial Holdings Europe B.V., a Dutch entity. The ultimate parent company is PACCAR Inc, a publicly traded US corporation headquartered in Bellevue, Washington.
Board Composition
As recorded on the Companies House register, board appointments and resignations reflect corporate group oversight:
- S R Barfoot: Director
- G J B Bas: Director
- C Gryniewicz: Director (Appointed 14 February 2025)
- T R Hubbard: Director (Resigned 14 February 2025)
Directors hold no direct equity in PACCAR FINANCIAL PLC. Aggregate director remuneration for qualifying services in 2024 was £226,496 (2023: £212,279), which included pension contributions of £11,914. Directors who hold roles across other group entities received no additional compensation for incidental services to this company.
Recent Corporate Filings, Security Charges, and Audit Quality
Independent auditor Ernst & Young LLP issued an unqualified audit opinion for the financial year ended 31 December 2024.
Key Audit Matters and Going Concern
Ernst & Young LLP identified the occurrence of turnover across the retail lease portfolio as a Key Audit Matter (KAM). Audit procedures involved walkthroughs of transaction classes, testing key automated controls, and utilizing data analytics to verify revenue recognition across lease agreements.
Under s.123 of the Insolvency Act 1986, a balance sheet deficit in net current assets can indicate working capital pressure. PACCAR FINANCIAL PLC addresses its £52.70m net current liability position via formal intercompany funding arrangements. Immediate parent PACCAR Financial Holdings Europe B.V. (PFE) provided a written commitment to support the company for at least 12 months from the balance sheet approval date.
Auditors verified PFE's capacity to honour this commitment by analyzing group liquidity, which includes:
- An uncommitted €2.0bn Commercial Paper programme
- An uncommitted €2.5bn Euro Medium Term Note (EMTN) programme
- Access to a $4.0bn unutilised group credit facility where PFE is a named participant
No insolvency notices, petitions, or administration appointments have been filed in The Gazette. To inspect underlying debentures or registered security interests over vehicle finance assets, professionals should conduct a company charge check on official registers.
Risk Indicators and Analytical Decision Framework
Corporate finance advisers, lenders, and credit analysts evaluating PACCAR FINANCIAL PLC must track several risk vectors inherent to captive asset financing:
1. Interest Rate Risk: The company finances long-term fixed and floating customer leases via intercompany borrowings. Exposure is hedged through derivative contracts. At 31 December 2024, the notional value of active interest rate swaps was £358.79m, with fair value liabilities standing at £12.24m against fair value assets of £2.53m.
2. Foreign Currency Exposure: Debt denominated in Euros and US Dollars is converted into Sterling using forward foreign exchange contracts and cross-currency swaps to prevent exchange rate mismatches.
3. Residual Value Exposure: Operating lease assets (£43.30m in tangible fixed assets) expose the business to used commercial vehicle valuation drops. PACCAR FINANCIAL PLC manages residual value risk via internal valuation models and adjustments to depreciation schedules. Guaranteed Buy-Back (GBB) arrangements provided to customers of DAF Trucks Limited transfer ultimate residual value risk to DAF Trucks NV, while PACCAR FINANCIAL PLC manages remarketing operations.
4. Credit Value Risk: Retail finance receivables are backed by commercial vehicles as collateral. Impairment losses depend on fleet operator solvency and secondary market prices for repossessed trucks.
Step-by-Step Risk Assessment Framework for Lenders & Counterparties
When reviewing financing counterparties structured like PACCAR FINANCIAL PLC, analysts should follow this investigative framework:
[1. Review Parent Support Letter]
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[2. Inspect Intercompany Borrowing Terms & Maturity Schedule]
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[3. Mark-to-Market Derivative Positions (Swaps/Cross-Currency)]
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[4. Evaluate Collateral Repossession & Used Truck Price Index]
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[5. Perform High Court Cause List & Gazette Security Checks]
1. Verify Parental Binding Obligations: Confirm that parent support letters explicitly cover at least 12 months post-filing and evaluate the parent's unutilised liquidity lines.
2. Examine Debt Maturity Profile: Assess short-term intercompany roll-overs (£276.54m due within one year) against long-term facilities (£251.71m maturing 2026-2028).
3. Assess Hedging Adjustments: Track fair value movements in interest rate and cross-currency swaps through profit and loss accounts.
4. Analyze Collateral Portfolios: Benchmark used truck sales income (£49.60m in 2024) against heavy goods vehicle (HGV) resale indices to gauge asset recovery values.
5. Monitor Formal Court Filings: Check cause lists regularly for creditor petitions or enforcement actions.
Analytical Scenario: Assessing Vendor Financing Exposure
A commercial lender evaluating a £50m wholesale funding line to an asset finance subsidiary must analyze whether the company relies on external banking lines or internal liquidity. For PACCAR FINANCIAL PLC, funding originates from fellow group companies backed by PFE's EMTN and commercial paper facilities. Because current liabilities exceed current assets by £52.70m, credit approval rests on parent solvency rather than standalone working capital ratios.
Manual Validation vs Corp Intel Automated Profiling
Completing due diligence on PACCAR FINANCIAL PLC manually requires gathering documentation across multiple regulatory sources:
- Manual Retrieval: Analysts must download filings from the Companies House register, cross-reference parent filings on Dutch registers, inspect cause lists maintained by HM Courts & Tribunals Service, check public notices on The Gazette, and review debt issuance documentation via financial markets.
- Corp Intel Intelligence: Corp Intel consolidates statutory accounts, intercompany liability tracks, derivative valuations, parent guarantees, and registry filings into a single analytical view. Analysts can run a winding up petition search across High Court registers or enable free company monitoring to receive immediate email notifications regarding board appointments, charge creations, or statutory filing updates.
FAQ
Why does PACCAR FINANCIAL PLC operate with net current liabilities?
PACCAR FINANCIAL PLC finances long-term vehicle leases for retail customers using short-term intercompany loans from group entities (£276.54m due within one year at 31 December 2024). These intercompany loans are rolled forward routinely as part of group treasury operations, creating a net current liability position of £52.70m that is supported by a formal parent guarantee.
Who ultimately guarantees the solvency of PACCAR FINANCIAL PLC?
Immediate parent company PACCAR Financial Holdings Europe B.V. (PFE) provides a formal, written undertaking to support PACCAR FINANCIAL PLC with financing for at least 12 months from the date the financial statements are signed. PFE participates in a $4.0bn credit facility and manages established commercial paper and EMTN programmes.
How does the company manage interest rate volatility on customer leases?
The company enters into interest rate swaps to match fixed-rate customer lease receivables against variable borrowing costs. As of 31 December 2024, the total notional value of active interest rate swap contracts was £358.79m.
What audit opinion was issued on the latest financial statements?
Ernst & Young LLP issued an unqualified audit opinion for the year ended 31 December 2024, confirming that the accounts give a true and fair view and that the use of the going concern assumption remains appropriate.
How are residual value risks managed on commercial vehicle contracts?
For operating leases, PACCAR FINANCIAL PLC manages residual value risk using historical PACCAR group vehicle valuation data and periodic adjustments to depreciation schedules. On Guaranteed Buy-Back contracts managed for DAF Trucks Limited, administrative and remarketing duties are handled by PACCAR FINANCIAL PLC, while residual value risk is borne by DAF Trucks NV.
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Monitor Corporate Filings and Credit Events
To review underlying charges, inspect intercompany loan notes, or set up real-time risk alerts for PACCAR FINANCIAL PLC, visit the full [PACCAR FINANCIAL PLC Profile](/company/04160861) on Corp Intel.