17th Jul 2025 13:27
(Alliance News) - Funding Circle Holdings PLC on Thursday said it has delivered "strong" revenue and profit margin growth in the first half of its current financial year, in "a testament to the strength of our brand, technology and credit decisioning".
The London-based lending platform focused on small and medium enterprises said credit extended in the six months that ended June 30 grew 21% to GBP1.1 billion.
Balances under management in the first half were at GBP2.8 billion, with credit performance in line with management expectations. Its Term Loans business recorded originations of GBP736 million, up 6.4% from GBP692 million.
Gross margins improved as a result of operating leverage and the "proactive cost actions" taken by the group in 2024, Funding Circle said.
The company saw "strong growth" in FlexiPay and the Cashback credit card too, with credit extended now topping the GBP1 billion mark since launch.
Funding Circle will publish its interim results on September 4.
"I am very pleased with the momentum we have carried into 2025 following our strong performance last year. We saw strong revenue growth with improving profit margins in our streamlined business as we continued to invest in new products," said Chief Executive Officer Lisa Jacobs.
"We remain confident in our ability to achieve our medium-term goals, and support more small businesses across the UK with the funding they need to succeed."
Funding Circle said it remained on track to deliver its medium-term guidance of more than GBP200 million in revenue and more than GBP30 million in pretax profit for 2026. This compares to GBP160.1 million in revenue and GBP3.4 million in pretax profit before exceptional items in 2024.
The company added that, following the announcement of its third share buyback programme in May for up to GBP25 million, it has bought back 14% of its issued share capital since March 2024.
Shares in Funding Circle were up 4.5% at 135.80 pence in London on Thursday afternoon. The stock has risen 21% over the past year.
By Emily Parsons, Alliance News reporter
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