TIDMFCH
RNS Number : 9372L
Funding Circle Holdings PLC
18 January 2021
Funding Circle Holdings plc
H2 2020 trading update
Strong end to 2020 with total income and AEBITDA well ahead of
previous expectations
Embargoed until 7.00am, 18 January 2021
THIS ANNOUNCEMENT INCLUDES INSIDE INFORMATION AS DEFINED IN
ARTICLE 7 OF THE MARKET ABUSE REGULATION NO. 596/2014
Funding Circle Holdings plc ("Funding Circle"), today announces
H2 total income of GBP121m and AEBITDA of no lower than GBP15m,
well ahead of previous expectations, supported by record loans
under management and originations.
Samir Desai CBE, CEO and Founder, said:
"As a result of Covid, we are seeing an acceleration in the
shift towards online in small business lending. As the largest
online SME loans platform we used our advanced technology to reach
record levels of lending in 2020 and we are well placed to capture
this enlarged opportunity going forward.
We achieved Group AEBITDA profitability in the second half of
2020. This is a significant milestone for the business and we
expect to continue to be AEBITDA profitable going forward.
It has been a difficult year for many people and I'd like to
thank all of our team who have worked exceptionally hard to help
small businesses. Whilst we remain mindful of the uncertain
economic environment, we are well positioned to help tens of
thousands of small businesses in 2021."
H2 2020 trading update(1)
6 months to 31/12 12 months to
31/12
GBPm 2020 2019 % 2020 2019 %
------- ------ ----- ------ ------ -----
Total Income Group 121 96 26% 222 177 25%
---------------- ------- ------ ----- ------ ------ -----
United Kingdom 94 59 60% 153 112 37%
------------------------------- ------- ------ ----- ------ ------ -----
United States 25 30 -17% 63 52 21%
------------------------------- ------- ------ ----- ------ ------ -----
Developing
Markets 2 7 -71% 6 13 -54%
------------------------------- ------- ------ ----- ------ ------ -----
Loans under
Management Group 4,214 3,731 13% 4,214 3,731 13%
---------------- ------- ------ ----- ------ ------ -----
United Kingdom 3,271 2,583 27% 3,271 2,583 27%
------------------------------- ------- ------ ----- ------ ------ -----
United States 759 882 -14% 759 882 -14%
------------------------------- ------- ------ ----- ------ ------ -----
Developing
Markets 184 266 -31% 184 266 -31%
------------------------------- ------- ------ ----- ------ ------ -----
Originations Group 1,630 1,158 41% 2,742 2,350 17%
---------------- ------- ------ ----- ------ ------ -----
United Kingdom 1,449 758 91% 2,111 1,556 36%
------------------------------- ------- ------ ----- ------ ------ -----
United States 171 308 -44% 581 619 -6%
------------------------------- ------- ------ ----- ------ ------ -----
Developing
Markets 10 92 -89% 50 175 -71%
------------------------------- ------- ------ ----- ------ ------ -----
Group
-- Total income reached GBP121m in H2 2020, up 26% year-on year,
supported by record loans under management of GBP4.2bn up 13% and
originations of GBP1.6bn, up 41%.
-- The loanbook continues to perform in line with the forecast
set out in the first half 2020 results.
-- As a result of strong trading, cost reduction actions and
Fair Value in line with expectations, H2 AEBITDA profit is now
expected to be higher than previous expectations and no lower than
GBP15m.
UK
-- Strong momentum with H2 total income up 60% year-on-year.
Loans under management were up 27% year-on-year and originations
were up 91%.
-- As at 13 December 2020, we represented c.25% share of the
number of CBILS loans approved since we began participating in the
scheme. When CBILS ends we will operate our core lending product
alongside the long term government guarantee programme previously
announced by HM Treasury.
US
-- In H2, total income was down 17%. Loans under management were
down 14% and originations were down 44%. As anticipated, borrower
demand was suppressed due to uncertainty over whether there would
be further PPP lending.
-- In late December additional PPP lending was approved by the
US Government and we will start distributing PPP loans in January.
When this scheme ends, we will continue to offer our recently
reintroduced core lending product, as well as continuing to grow
our referral model.
Developing Markets
-- As previously communicated in Q1 2020, in Germany and the
Netherlands we changed to a pure referral model and in H2 the
business performed in line with expectations.
Further details will be provided in the Funding Circle annual
results announcement on 25 March 2021.
(1) Based on preliminary and unaudited figures
Investor Relations and media relations:
Funding Circle
David de Koning - Director of Investor Relations and
Communications (0203 927 3893)
Headland Consultancy
Mike Smith / Stephen Malthouse (020 3805 4822)
About Funding Circle:
Funding Circle (LSE: FCH) is a small and medium enterprise
("SME") loans platform. Since launching in 2010, investors and
lenders across Funding Circle's geographies - including retail
investors, banks, specialty finance companies asset management
companies, insurance companies, government-backed entities and
funds - have lent more than GBP11.5 billion to approximately 95,000
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.
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END
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