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Lender Funding Circle Posts Widened Loss But Eyes 2020 Breakeven

12th Mar 2020 10:19

(Alliance News) - Funding Circle Holdings PLC on Thursday said it achieved record loans under management in 2019, but its loss widened despite a revenue rise.

In 2019, revenue was 18% higher at GBP167.4 million from GBP141.9 million, "despite a challenging economic environment".

Its pretax loss stretched to GBP84.2 million from GBP50.9 million, with the business loans provider reporting GBP34.3 million in non-cash write-down costs, compared to none in 2018.

The company said loans under management rose 19% to a record GBP3.73 billion from GBP3.15 billion.

Chief Executive Officer Samir Desai said: "In 2019 we grew loans under management to a record GBP3.7 billion. The actions we took in 2019, in response to the uncertain economic outlook, reduced growth but improved investor returns and were the right response for the long-term benefit of the company and our customers.

"We start the year in a stronger position as a business and confident in delivering an accelerated pathway to profitability targeting adjusted earnings before interest, tax, depreciation and amortisation break-even for the whole business in the second half of 2020."

In 2019, its adjusted Ebitda loss widened to GBP27.5 million from GBP23.4 million.

Funding Circle added: "Trading for the year has started well. We continue to assess the possible impact of covid-19 on borrowers and investors. We have not seen an impact of the virus on recent trading, but we are monitoring the situation closely."

Funding Circle shares were 5.6% lower at 57.10 pence each in London on Thursday morning.

By Eric Cunha; [email protected]

Copyright 2020 Alliance News Limited. All Rights Reserved.


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