Orchard Funding profit falls 15%, owing to banking licence application costs

Mon, 23rd Mar 2020

Specialist finance provider Orchard Funding booked a 15% fall in first-half profit, as rising revenue was offset by costs associated with its application for a banking licence. Pre-tax profit for the six months through January fell to £1.00m, down from £1.18m on-year, even as revenue rose 3.3% to £2.77m. Lending volumes rose 4.0% and the loan booked swelled 7.8% to £31.6m. 'Our lending and revenue has increased and in line with expectations our costs have increased due to the bank licence application process,' chief executive Ravi Takhar said. 'We are currently living through unprecedented times.' 'The implications of restricting individual movements to consumers, businesses, borrowing, lending and liquidity are still unclear.' 'We have the benefit of a short-term lending book, with a quick contractual pay-back and which in the main finances essential items.' 'As we found in the global financial crisis, in times of stress a shorter-term lending book provides some comfort over a longer-term book.' 'We continue to watch the market and new lending opportunities carefully and like everyone else, hope and trust that the restrictions on movement will quickly contain and manage the threat to all of us.' At 9:49am: (LON:ORCH) Orchard Funding Group Plc share price was 0p at 77.5p Story provided by StockMarketWire.com

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