Funding Circle (LSE: FCH) has recently published its HY 2023 results, “covering the six months ended 30 June 2023.”
The business delivered a solid financial performance in line “with expectations and the guidance it set in March for FY2023 and FY2025 remains unchanged.”
Here are the financial highlights:
- Total originations and transactions of £771m, up 14% on H2 2022 (£678m) with growth in all business units.
- Total income of £76.6m ahead of H2 2022 (£73.2m).
- UK Loans business profitable (AEBITDA of £8.8m and PBT of £1.4m).
- Group AEBITDA of negative £3.0m reflecting planned investment in attractive growth opportunities across US Loans business and FlexiPay.
The Group continues to “manage the changing economic environment.”
Loan returns reportedly remain robust and attractive, and it “continues to see institutional investor demand to fund loans, with three new forward flow agreements in the UK and US in H1 2023.”
In August it launched “the third iteration of the Recovery Loan Scheme with Allica Bank as a new bank investor.”
Commenting on the results, Lisa Jacobs, Funding Circle CEO, said:
“We delivered a solid set of results in the first half of the year, in line with our expectations, and once again demonstrated the resilience of the business and our aptitude at responding to the changing economic environment. Our UK Loans business is profitable, we’ve seen good growth in US Loans and FlexiPay is showing great momentum as we expand our offering to access a larger market and serve more of our customers’ needs. FlexiPay transactions have more than doubled to £90 million in the half, with more than £150 million transactions since launch. We have also extended our track record of delivering robust and attractive loan returns for our investors. We’re making good progress towards our medium-term targets and are in a strong position to grow as the economic backdrop recovers.”
As covered, Funding Circle, which claims to be a leading online lending platform for small business borrowers, recently announced that Kanthi Muthiah has joined the company as U.S. Chief Product Officer.
Kanthi, a former FICO, PayPal, and JP Morgan executive, will “support overall product strategy and innovation at Funding Circle U.S. and will report to U.S. Managing Director, Steve Allocca.”
Kanthi will play an integral role in “advancing the capabilities of Funding Circle’s current product offerings while continuing to develop solutions that meet the ever-changing financing needs of today’s small businesses.”
