TIDMFCH
RNS Number : 5386E
Funding Circle Holdings PLC
19 October 2018
19 October 2018
Funding Circle Holdings plc
Q3 2018 Update
Funding Circle Holdings plc ("Funding Circle" or the "Company"),
the leading small and medium enterprise ("SME") loans platform in
the UK, US, Germany and the Netherlands, today announces updates to
its statistics pages for the three months ending 30 September 2018
(the "Quarter") and selected highlights from the quarter.
The data by country included in this announcement is also
available on the Company's website at
corporate.fundingcircle.com/investors/loan-performance-statistics.
Group performance(1)
2018 2017
Q3 2018 Q3 2017 % YTD YTD %
Loans under Management
(excluding property(1)
) GBPm 2,777 1,726 61% N/A N/A N/A
------ --------- -------- ---- ------ ------ ----
Originations
(excluding property(1)
) GBPm 564 388 45% 1,603 1,109 45%
------ --------- -------- ---- ------ ------ ----
Highlights:
-- Loans under Management (excluding property) of GBP2.8 billion
as at 30 September 2018, up 61% compared to the same period last
year
-- Originations (excluding property) of GBP564 million for Q3
2018 vs GBP388 million in Q3 2017, up 45%; total of GBP1.6 billion
loans originated in the year to 30 September 2018
-- On 7 September 2018, Alcentra Group, an alternative fixed
income specialist for BNY Mellon Investment Management, agreed to
lend up to $1 billion to SMEs through Funding Circle's platform in
the US over the next three years
-- On 18 September 2018 the Company announced Geeta Gopalan will
join the Funding Circle Board on 1 November as a Non-Executive
Director and Chair the Audit Committee
-- On 3 October 2018, the Company was admitted to trading on the
Premium Listing segment of the London Stock Exchange. As part of
the IPO, the Company raised gross proceeds of GBP300 million
Samir Desai CBE, CEO and co-founder said: "Funding Circle
delivered a strong quarter of growth with loans under management of
GBP2.8 billion and a record quarter for originations. The business
continues to deliver our growth strategy and we remain focused on
building Funding Circle for the long term."
Outlook for full year 2018
The Board confirms growth expectations remain unchanged for the
full year.
Our statistics - Q3 2018
The following information is reproduced from each country's
statistics pages, which can be found at
corporate.fundingcircle.com/investors/loan-performance-statistics.
Loans under Management (million)
2012 2013 2014 2015 2016 2017 2018 YTD
Group(2)
(GBP) 52 145 366 860 1,362 2,107 2,809
----- ----- ----- ----- ------ ------ ---------
UK(2)
(GBP) 52 144 332 653 1,027 1,583 2,013
----- ----- ----- ----- ------ ------ ---------
US ($) N/A 54 261 354 577 810
------------ ----- ----- ------ ------ ---------
DE (EUR) N/A 27 30 65 117
------------------- ----- ------ ------ ---------
NL (EUR) N/A 16 40 78
-------------------------- ------ ------ ---------
Originations (million)
2012 2013 2014 2015 2016 2017 2018 YTD
Group(3)
(GBP) 49 130 311 721 1,065 1,738 1,608
----- ----- ----- ----- ------ ------ ---------
UK(3)
(GBP) 49 129 279 531 823 1,264 1,089
----- ----- ----- ----- ------ ------ ---------
US ($) N/A 334 281 514 540
------------ ------------ ------ ------ ---------
DE (EUR) N/A 33 19 55 78
------------ ------------ ------ ------ ---------
NL (EUR) N/A 21 34 56
------------------- ------------- ------ ---------
Gross Yield
2012 2013 2014 2015 2016 2017 2018 YTD
UK 9.2% 8.4% 10.0% 9.7% 9.7% 9.8% 9.8%
----- ----- ------ ----- ------ ------ ---------
US N/A 14.2% 13.2% 12.5% 13.0%
------------ ------------- ------ ------ ---------
DE N/A 7.2% 9.5% 9.5% 10.0%
------------ ------------- ------ ------ ---------
NL N/A 9.3% 10.9% 11.9%
-------------------- ------------- ------ ---------
Projected annualised return range (after fees and bad
debt)(4)
2012 2013 2014 2015 2016 2017 2018 YTD
UK 7.1%-7.2% 5.6%-5.8% 7.3%-7.4% 6.8%-7.2% 5.4%-6.3% 5.2%-6.2% 5.5%-6.5%
---------- ---------- ---------- ---------- ---------- ---------- ----------
US N/A 1.8%-2.2% 4.0%-4.8% 5.5%-7.1% 5.8%-7.8%
---------------------- ---------------------- ---------- ---------- ----------
DE N/A -0.1%-0.9% 2.3%-4.1% 4.8%-6.7% 5.3%-7.3%
---------------------- ---------------------- ---------- ---------- ----------
NL N/A 3.8%-4.8% 5.6%-7.5% 6.4%-8.4%
---------------------------------- ---------------------- ---------- ----------
Projected bad debt rate range(5)
2012 2013 2014 2015 2016 2017 2018 YTD
UK 1.3%-1.3% 1.8%-2.0% 1.9%-2.0% 1.7%-2.1% 2.5%-3.3% 2.8%-3.8% 2.5%-3.5%
---------- ---------- ---------- ---------- ---------- ---------- ----------
US N/A 11.0%-11.4% 7.5%-8.3% 4.6%-6.1% 4.4%-6.4%
---------------------- ---------------------- ---------- ---------- ----------
DE N/A 4.7%-5.7% 4.4%-6.2% 1.7%-3.6% 1.7%-3.7%
---------------------- ---------------------- ---------- ---------- ----------
NL N/A 2.8%-4.0% 2.2%-4.2% 2.2%-4.2%
---------------------------------- ---------------------- ---------- ----------
S
Media Enquiries:
Funding Circle
David de Koning - Director of Group Communications
(press@fundingcircle.com / 0203 667 2245)
TB Cardew
Ed Orlebar (020 79300 777)
Tom Allison (020 79300 777)
About Funding Circle:
Funding Circle (corporate.fundingcircle.com) is a global SME
loans platform, connecting SMEs who want to borrow with investors
who want to lend in the UK, US, Germany and the Netherlands. Since
launching in 2010, investors across Funding Circle's geographies -
including more than 85,000 retail investors, banks, asset
management companies, insurance companies, government-backed
entities and funds - have lent more than GBP5.5 billion to over
55,000 businesses globally.
Forward looking statements and other important information
This document contains forward looking statements, which are
statements that are not historical facts and that reflect Funding
Circle's beliefs and expectations with respect to future events and
financial and operational performance. These forward looking
statements involve known and unknown risks, uncertainties,
assumptions, estimates and other factors, which may be beyond the
control of Funding Circle and which may cause actual results or
performance to differ materially from those expressed or implied
from such forward-looking statements. Nothing contained within this
document is or should be relied upon as a warranty, promise or
representation, express or implied, as to the future performance of
Funding Circle or its business. Any historical information
contained in this statistical information is not indicative of
future performance.
The information contained in this document is provided as of the
dates shown. Nothing in this document should be construed as legal,
tax, investment, financial, or accounting advice, or solicitation
for or an offer to invest in Funding Circle.
Definitions and notes to the editor:
1. In 2017, Funding Circle took the decision to no longer lend
to property developers in the United Kingdom, the one market in
which it had previously expanded its product set beyond amortising
SME loans. As a result, the Board excludes property lending when
measuring ongoing business performance.
2. Group and UK Loans under Management by year include property
lending. Loans under Management related solely to property were, by
year: 2012/2013: GBP0; 2014: GBP26 million; 2015: GBP115 million;
2016: GBP163 million; 2017: GBP95 million; September 2018: GBP32
million.
3. Group and UK originations by year include property lending.
Group originations related solely to property lending were, by
year: 2012/2013: GBP0; 2014: GBP23 million; 2015: GBP114 million;
2016: GBP171 million; 2017: GBP107 million; 2018 year to date: GBP5
million.
4. The projected annual return shows how loans are estimated to
perform. Loans are shown by the year they were taken out, and are
after fees and bad debt. Returns equal gross yield minus net losses
minus servicing fee and is estimated, using an internally managed
model, by cohort of origination incorporating actual returns
received for each cohort and adding future expected returns which
are determined using the same aforementioned model. Net yield is
compounded to recognise re-investment. These expectations may be
revised, for example if macroeconomic conditions change, and the
projected return, projected gross yield and the projected bad debt
rate may be adjusted to reflect this.
5. The projected bad debt rate shows the projected annualised
percentage of loans, by loan amount, that will not be repaid. Loans
are shown by the year they were taken out and include recoveries.
It can take up to five years for loans to be fully repaid, so the
projected return, projected gross yield and projected bad debt rate
take into account how each year of loans are performing and how
Funding Circle expects them to perform in future. These
expectations may be revised, for example if macroeconomic
conditions change, and the projected return, projected gross yield
and the projected bad debt rate may be adjusted to reflect
this.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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