Funding Circle Holdings (FCH)

Sector:

Financials

Index:

FTSE Small Cap

131.50p
   
  • Change Today:
      6.00p
  • 52 Week High: 146.00p
  • 52 Week Low: 26.40p
  • Currency: UK Pounds
  • Shares Issued: 330.97m
  • Volume: 678,573
  • Market Cap: £435.23m
  • RiskGrade: 286
  • Beta: 2.09

Funding Circle tanks as it halves revenue growth expectations

By Duncan Ferris

Date: Tuesday 02 Jul 2019

LONDON (ShareCast) - (Sharecast News) - Shares in Funding Circle tanked on Tuesday as it slashed full-year revenue growth expectations, warning that an increasingly uncertain economic outlook has reduced demand for loans.
The peer-to-peer lending platform, which has tightened its loans policy when it comes to higher risk band businesses, cut revenue growth expectations from 40% to approximately 20%. It said increased selectivity will affect overall origination volumes but will protect net returns for investors on its platform.

The company posted a 30% jump in revenue for the first half of the year, while the adjusted earnings before interest, tax, depreciation and amortisation loss margin was expected to be about 25% and is forecast to improve from the negative 20% level achieved in 2018 across the full year.

Loans under management increased to £3.5bn, up 37% compared to the first half of last year, while new loan originations were up 14% at £1.2bn.

Samir Desai, chief executive and co-founder of Funding Circle, said: "The uncertain economic environment has reduced demand from small businesses and led us to proactively tighten lending criteria. As a result, revenue growth will be impacted. We recognise that this is a change from our previous guidance, but we are taking the prudent course of action for the long-term growth and development of our business."

Desai said the board remains confident in its aim to become the world's largest small business loans provider, helping millions of businesses to create jobs and support economic growth.

At 0840 BST, the shares were down 22% at 127.50p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

FCH Market Data

Currency UK Pounds
Share Price 131.50p
Change Today 6.00p
% Change 4.78 %
52 Week High 146.00p
52 Week Low 26.40p
Volume 678,573
Shares Issued 330.97m
Market Cap £435.23m
Beta 2.09
RiskGrade 286

FCH Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
30.47% below the market average30.47% below the market average30.47% below the market average30.47% below the market average30.47% below the market average
42.59% below the sector average42.59% below the sector average42.59% below the sector average42.59% below the sector average42.59% below the sector average
Price Trend
99.16% above the market average99.16% above the market average99.16% above the market average99.16% above the market average99.16% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Income Not Available
Growth
2.13% below the market average2.13% below the market average2.13% below the market average2.13% below the market average2.13% below the market average
7.84% above the sector average7.84% above the sector average7.84% above the sector average7.84% above the sector average7.84% above the sector average

What The Brokers Say

Strong Buy 2
Buy 1
Neutral 1
Sell 0
Strong Sell 0
Total 4
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

FCH Dividends

No dividends found

Trades for 21-Nov-2024

Time Volume / Share Price
16:22 29 @ 131.00p
16:35 88,981 @ 131.50p
16:35 8 @ 131.50p
16:35 1,126 @ 131.50p
16:35 916 @ 131.50p

FCH Key Personnel

Chair Andrew Learoyd
CFO Oliver White
CEO Lisa Jacobs

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