LONDON (ShareCast) - (Sharecast News) - FTSE 250 lending platform Funding Circle said on Thursday that its first-half loss widened as it reiterated guidance for the full year.
In the six months to the end of June, the company made an EBITDA loss of £19.7m compared to a £13.9m loss in the same period a year ago, while pre-tax losses widened to £30.8m from £27.1m. Group revenue rose 29% to £81.4m.

Funding Circle had already warned in an update in July that economic uncertainty had reduced demand for loans from small business and led the group to proactively tighten its lending criteria. As a result, it downgraded its full-year revenue growth guidance to around 20% from 40%.

Loans under management were up 37% in H1 to £3.54bn and originations rose 14% to £1.19bn.

The group reiterated the revenue guidance from July and said the adjusted EBITDA loss margin for 2019 will be better than the previous year.

Co-founder and chief executive officer Samir Desai said: "We continue to benefit from strong repeat dynamics from borrowers, with 46% of group revenue coming from existing customers, and attracting new investors to the platform.

"We remain confident in our aim to become the world's largest small business loans provider, helping millions of businesses to create jobs and support economic growth. Small businesses remain underserved. Our platform allows them to access the finance they need in a fast and affordable way, whilst at the same time, opening up a stable and attractive asset class to a broad range of investors."

At 1010 BST, the shares were up 5.1% to 104.4p.

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