Orchard Funding Group PLC Trading Statement (8750D)
12 July 2016 - 4:00PM
UK Regulatory
TIDMORCH
RNS Number : 8750D
Orchard Funding Group PLC
12 July 2016
12 July 2016
Orchard Funding Group PLC
("Orchard Funding Group" or the "Company" or the "Group")
Trading Update
Orchard Funding Group, the finance company which specialises in
insurance premium finance and the professions funding market,
announces that it expects revenues for the 12 months to 31 July
2016 to be broadly level with the prior financial year.
The Company remains well positioned in its two core markets,
where it continues to lend in a prudent and conservative manner.
The Company has invested in developing and expanding its senior
sales team and in the development of its software and technology
platform. The Company has not yet achieved material increases in
its revenue base and as a consequence, the Company's trading
performance for the current financial year is expected to be below
market expectations.
The process for recruiting senior sales individuals has taken
longer than originally envisaged and this has delayed the Company's
ability to significantly increase its lending volumes. This has now
been rectified, culminating in the appointment of a senior sales
executive from the largest lender in the insurance premium finance
market in June.
Further, the new FCA consumer credit regime has significantly
delayed approval of new lender applications. As a result, the
time-lines for insurance brokers to set up in-house finance
companies, that can borrow from the Company, are and will continue
to be extended.
The Board, nevertheless, remains confident in the Company's
ability to achieve strong growth for the next financial year, as in
its view there is no fundamental change in the business or the
growth opportunities for the Company.
Ravi Takhar, Chief Executive Officer of Orchard, said: "Orchard
continues to prudently lend into safe and secure lending markets
and has been able to conservatively increase its lending over the
past 12 months. We are disappointed not to have been able to make
the step change up in revenues we were expecting in this financial
year but we believe we are well placed to do so over the next 12
months. Our pipeline of new business opportunities is now
significantly larger than we anticipated on flotation and a clear
indicator of our ability to meet and potentially exceed our longer
term objectives."
For further information, please contact:
Orchard Funding Group PLC
+44 (0)1582 635 507
Ravi Takhar, Chief Executive Officer
Panmure Gordon (UK) Limited (Nomad and Broker) +44 (0)20 7886
2500
Dominic Morley / Alina Vaskina (Corporate Finance)
Charles Leigh-Pemberton (Corporate Broking)
Novella +44 (0)20 3151 7008
Tim Robertson
Toby Andrews
For Investor Relations please go to:
www.orchardfundinggroupplc.com
Note: This announcement contains inside information which is
disclosed in accordance with the Market Abuse Regulation.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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