Funding Circle Hldgs - Trading Update
Funding Circle Holdings plc
Expected to finish 2020 strongly and upgraded outlook to AEBITDA profitable in H2
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.
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
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.
Since the start of the second national lockdown in the
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.
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
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
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