Funding Circle Holdings (FCH)

Sector:

IT Services

Index:

FTSE Small Cap

80.80p
   
  • Change Today:
    -3.10p
  • 52 Week High: 410.00p
  • 52 Week Low: 80.80p
  • Currency: UK Pounds
  • Shares Issued: 348.40m
  • Volume: 106,266
  • Market Cap: £281.51m
  • RiskGrade: 308

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 80.80p
Change Today -3.10p
% Change -3.69 %
52 Week High 410.00p
52 Week Low 80.80p
Volume 106,266
Shares Issued 348.40m
Market Cap £281.51m
RiskGrade 308

FCH Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
37.93% above the market average37.93% above the market average37.93% above the market average37.93% above the market average37.93% above the market average
40.43% above the sector average40.43% above the sector average40.43% above the sector average40.43% above the sector average40.43% above the sector average
Price Trend
61.39% below the market average61.39% below the market average61.39% below the market average61.39% below the market average61.39% below the market average
72.82% below the sector average72.82% below the sector average72.82% below the sector average72.82% below the sector average72.82% below the sector average
Income Not Available
Growth
12.58% above the market average12.58% above the market average12.58% above the market average12.58% above the market average12.58% above the market average
23.71% above the sector average23.71% above the sector average23.71% above the sector average23.71% above the sector average23.71% above the sector average

What The Brokers Say

Strong Buy 1
Buy 0
Neutral 4
Sell 0
Strong Sell 1
Total 6
neutral
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 24-Jan-2020

Time Volume / Share Price
16:35 2,003 @ 80.80p
16:28 224 @ 82.80p
16:28 532 @ 82.90p
16:28 4,181 @ 82.90p
16:28 126 @ 83.00p

FCH Key Personnel

Chair Andrew Learoyd
CEO Samir Desai
CFO Sean Glithero

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