Funding Circle (LSE: FCH), a prominent online lending platform for small businesses, has just released its half-year 2023 financial results. The company’s performance was in line with expectations, and its guidance for FY2023 and FY2025 remains unchanged.
Let’s take a look at the key financial highlights:
– Total originations and transactions amounted to £771m, a 14% increase compared to the second half of 2022 (£678m). This growth was observed across all business units.
– Total income reached £76.6m, surpassing the figure of £73.2m reported in the second half of 2022.
– The UK Loans business showed profitability, with an AEBITDA of £8.8m and a PBT of £1.4m.
– Group AEBITDA amounted to negative £3.0m, reflecting planned investments in attractive growth opportunities within the US Loans business and FlexiPay.
Despite the changing economic environment, Funding Circle has successfully managed to maintain robust and attractive loan returns. The company continues to witness a strong demand from institutional investors to fund loans, as evidenced by the establishment of three new forward flow agreements in the UK and US in the first half of 2023.
In addition, Funding Circle announced the launch of the third iteration of the Recovery Loan Scheme in partnership with Allica Bank. This move further strengthens the company’s position in providing financial support to small businesses.
Commenting on the results, Lisa Jacobs, the CEO of Funding Circle, expressed satisfaction with the solid performance achieved in the first half of the year. She also highlighted the profitability of the UK Loans business and the significant growth in the US Loans and FlexiPay divisions. Jacobs emphasized the company’s ability to adapt to the changing economic landscape and its commitment to meeting the needs of its customers.
In line with its growth strategy, Funding Circle has appointed Kanthi Muthiah as the Chief Product Officer for its US operations. Muthiah, with previous executive experience at FICO, PayPal, and JP Morgan, will drive product strategy and innovation at Funding Circle US. His role will focus on strengthening the company’s current product offerings while developing solutions that cater to the evolving financing requirements of small businesses.
Overall, Funding Circle’s HY 2023 results demonstrate a solid financial performance and position the company for future growth as the economic environment continues to recover.
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