Funding Circle Holdings PLC Trading Update (2419G)
November 24 2020 - 2:00AM
UK Regulatory
TIDMFCH
RNS Number : 2419G
Funding Circle Holdings PLC
24 November 2020
Funding Circle Holdings plc
Trading update
Expected to finish 2020 strongly and upgraded outlook to AEBITDA
profitable in H2
Embargoed until 7.00am, 24 November 2020
THIS ANNOUNCEMENT INCLUDES INSIDE INFORMATION AS DEFINED IN
ARTICLE 7 OF THE MARKET ABUSE REGULATION NO. 596/2014
Funding Circle Holdings plc ("Funding Circle"), today issues the
following trading update.
Trading
Since our half year results we have continued to see high demand
from small businesses to borrow and investors to purchase loans on
the Funding Circle platform. As a result, in the four months ended
30 October total income for the Group was up 38% year on year.
This acceleration has been driven by strong momentum in the UK
with total income up 67% year on year in the four months to 30
October. In total, we have approved c.GBP1.85 billion and
originated c.GBP1.35 billion of CBILS loans as at 15 November 2020,
representing c.24% share of the number of loans approved since we
began participating in CBILS.
In the US, total income was up 10% year on year in the four
months to 30 October, driven by investment income. With the timing
around any future economic stimulus uncertain, we continue to work
with other lenders in the market on our US referral model and we
expect to relaunch our core lending product when conditions
allow.
S ince the start of the second national lockdown in the UK we
have not seen any material impact in the number of borrowers making
payments so far.
Outlook
The economic environment remains uncertain and as highlighted at
our HY results, we continue to expect a period of significant
stress going forward. As a result of the strong performance to
date, we expect H2 2020 total income to be ahead of H1 2020 and
c.20% higher for the full year compared to 2019. Half on half cost
reductions are expected to be less than the 15% originally guided
to due to profitable additional marketing spend associated with
higher volumes. We now expect to be AEBITDA profitable in H2,
materially ahead of previous guidance of close to breakeven set out
at our HY results.
Media Enquiries:
Funding Circle
David de Koning - Director of Investor Relations and
Communications (0203 927 3893)
Headland Consultancy
Mike Smith / Stephen Malthouse (020 3805 4822)
About Funding Circle:
Funding Circle (LSE: FCH) is a small and medium enterprise
("SME") loans platform . Since launching in 2010, investors and
lenders across Funding Circle's geographies - including retail
investors, banks, specialty finance companies asset management
companies, insurance companies, government-backed entities and
funds - have lent approximately GBP10 billion to 90,000 businesses
globally.
Forward looking statements and other important information
This document contains forward looking statements, which are
statements that are not historical facts and that reflect Funding
Circle's beliefs and expectations with respect to future events and
financial and operational performance. These forward looking
statements involve known and unknown risks, uncertainties,
assumptions, estimates and other factors, which may be beyond the
control of Funding Circle and which may cause actual results or
performance to differ materially from those expressed or implied
from such forward-looking statements. Nothing contained within this
document is or should be relied upon as a warranty, promise or
representation, express or implied, as to the future performance of
Funding Circle or its business. Any historical information
contained in this statistical information is not indicative of
future performance.
The information contained in this document is provided as of the
dates shown. Nothing in this document should be construed as legal,
tax, investment, financial, or accounting advice, or solicitation
for or an offer to invest in Funding Circle.
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END
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