Thursday 23 May 2019

Funding Circle revenue jumps in first quarter

Turnover rose around 40%.

Funding Circle listed last year (Kirsty O’Connor/PA)
Funding Circle listed last year (Kirsty O’Connor/PA)

By Ravender Sembhy, Press Association City Editor

Funding Circle has reported a surge in first-quarter revenue, driven by a spike in loans under management.

The peer-to-peer lender, which floated last year, said its loan book swelled 44% to £3.4 billion in the period, with total originations up 23% at £644 million.

Combined with higher transaction yield from US policy changes and growth from over revenue lines, this helped turnover rise around 40%.

Funding Circle chief executive Samir Desai said: “Quarter one was a period where Funding Circle reinforced its leadership position across each of its markets, reaching a new high of loans under management of £3.4 billion.

“We continue to implement our strategy of diversifying funding sources with a new commitment from the European Investment Bank, as well as launching two new institutional investor products.”

Shares were up more than 2% at 318p in morning trade.

Last year the firm posted revenue of £141.9 million for 2018, a 55% increase year on year, which exceeded its 50% guidance.

But pre-tax losses widened to £50.7 million from £36.3 million as it stepped up marketing activities to support its international growth ambitions.

Funding Circle, which launched in 2010, matches lenders to small business borrowers and floated on the London Stock Exchange last September with a valuation of £1.5 billion.

Press Association

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