Funding Circle Reports £1.5M in Operating Profit

Funding Circle, which claims to be the United Kingdom’s largest small business loan platform, has announced its results for the six months “ended 30 June 2022.”

As noted in an update shared with CI, Funding Circle delivered “a financial performance ahead of expectations, finishing the period with £10.6 million of Adjusted EBITDA and £1.5 million of operating profit.”

The business also “made early progress against its medium-term plan, executing against the three strategic pillars” set out in March 2022:

  • Attract more businesses: Launched two Lending as a Service partnerships in the US.
  • Say yes to more businesses: Expanded core product set in UK and US; strong origination growth, particularly in the US.
  • #1 in new products: Doubled FlexiPay drawdowns since March.

The business continues “to benefit from its proven platform model and investor returns remain resilient despite the macroeconomic backdrop.”

Recent cohorts of loans are “expected to deliver 5%-7% returns, reflecting the quality of the loans Funding Circle originates.” The business also “continues to see demand from investors to fund loans with an active forward-pipeline.”

Company CEO Lisa Jacobs stated:

“We are well prepared to manage the business through the challenging macro environment and are confident in our ability to help small businesses do the same. With our market-leading technology, which continues to deliver a superior customer experience, we remain well placed to deliver on our mission to help more small businesses get the funding they need to win.”

For more details on this update, check here.

As covered in July 2022, Funding Circle had announced the appointment of Bruno Tavares as VP of Engineering.

Bruno has “a strong background in technology, built on more than twenty years of industry experience.”

He has “a clear track record of growing engineering teams and scaling products across a diverse range of sectors, including digital healthcare (Elephant Healthcare) and sports streaming services (DAZN).”

As reported in June 2022, Funding Circle, had refreshed its ‘Money To Do More’ scheme “with enhanced benefits for Funding Circle employees, known as Circlers.”

The company had “set aside £300k this year, with each of Funding Circle’s 600 Circlers in the UK receiving a £500 allowance to support their development and wellbeing.”

The previously established Learning & Development allowance of £300 is designed “to help individuals with achieving their personal and career development goals.”

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