Funding Circle anticipates profitable full-year results
Funding Circle remains on track for full-year profitability, according to a trading update released today.
The London-listed business lender said that it had built on its strong half-year results published in September 2024, delivering a good performance in the second half of the year, which was consistent with the board’s expectations.
In September, Funding Circle reported pre-tax profits of £0.5m for the first six months of 2024, up from a loss of £2.5m in the second half of last year, and a loss of £7.4m during the first half of 2023. The company said that this reflected the profitable growth of its term loans business.
Read more: Funding Circle nears profitability following origination boost
The trading update reaffirmed Funding Circle’s guidance for full-year profitability. It also said it remains on track with its medium-term guidance, of 15-20 per cent revenue growth and profit before tax margins of more than 15 per cent.
In October 2024, the board announced a further £25m share buyback programme which is expected to be completed in the second quarter of 2025.
To date, approximately £10m of ordinary shares have been repurchased and cancelled.
Read more: Funding Circle sells US arm for £33m to focus on UK
“Last March we set out a plan to be a simpler, leaner and profitable business whilst continuing to show strong growth,” said Funding Circle chief executive Lisa Jacobs. “We successfully completed the sale of the US business in July, have simplified the UK business and delivered on our upgraded guidance. We enter 2025 well-placed to make further progress against our medium-term plan and help get finance to even more SMEs.”
Funding Circle’s results for the full year ended 31 December 2024 will be published on 6 March 2025.
Read more: Funding Circle launches cashback business credit card
