UK's Funding Circle H1 revenue up 50% on term loans growth; lifts FY outlook
UK's Funding Circle H1 revenue up 50% on term loans growth; lifts FY outlook
Overview
UK SME finance platform's H1 2026 revenue rose 50% yr/yr, profit before tax quadrupled
Company upgraded FY26 guidance for revenue and profit before tax
Funding Circle to start new £25 mln share buyback after current programme ends
Outlook
Funding Circle raises FY26 revenue guidance to more than £255m, up from c.£235m
Company lifts FY26 profit before tax guidance to more than £40m, up from at least £35m
Funding Circle targets FY29 revenue of £300m-£350m and PBT margins in low to mid-20% range
Result Drivers
TERM LOANS GROWTH - Revenue and profit growth driven by strong originations, supported by product innovation and high SME demand, especially for shorter-term loans
FLEXIPAY & CREDIT CARD MOMENTUM - Significant increase in transactions and revenue from FlexiPay and Credit Card products, reflecting new customer growth and strong usage by existing customers
OPERATING LEVERAGE - Profitability improved as cost growth was outpaced by revenue growth, supporting margin expansion
Company press release: ID:nRSH7583Ta
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Total Income |
| GBP 138.2 mln |
|
H1 Net Income |
| GBP 22.6 mln |
|
H1 Pretax Profit |
| GBP 24.1 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the consumer lending peer group is "buy"
Wall Street's median 12-month price target for Funding Circle Holdings PLC is GBp260.00, about 13% above its September 7 closing price of GBp230.00
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 14 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)