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(Sharecast News) - Funding Circle slumped on Tuesday despite an upgrade to full-year guidance, as it announced the departure of well-regarded chief executive Lisa Jacobs.
The SME finance platform said Jacobs - who joined the company in 2012 and was appointed CEO in January 2022 - plans to step down no later than September 2027. Funding Circle will begin a formal search for her successor, but in the meantime, Jacobs will continue in her role and work closely with the board to ensure "a smooth and orderly" transition.
Chair Ken Stannard said: "When she joined in 2012, Funding Circle was a start-up built on a simple conviction: that technology could transform how small businesses access finance. Since then, we've extended more than £18 billion in credit to more than 135,000 SMEs, and delivered the transformation plan set out in March 2024 to build a simpler, high growth and more profitable business.
"We will be very sorry to say goodbye to Lisa, but we also appreciate that 14 years is a long time. We respect her decision and how she has chosen this timing to coincide with the strong momentum of the business. Lisa is determined to leave Funding Circle in the strongest position possible and ensure a smooth transition. The board and I are fully focused on finding the right candidate who will build on our strong platform for growth."
News of Jacobs' departure came alongside the company's results for the six months to 30 June, which showed pre-tax profit jumped to £24.1m from £6m in the same period a year earlier, while revenue rose 50% to £138.2m.
Funding Circle said its Term Loans business continued to grow strongly, with originations up 43% at £1.05bn, driven by the shorter-term loan offering (launched at the end of H1 2025) and strong demand in the first quarter of 2026.
The company said it now expects FY26 pre-tax profit of more than £40m, up from previous guidance of at least £35m. Guidance for revenue was lifted to more than £255m from around £235m previously.
Jacobs said: "The opportunity in front of us remains substantial. Economic growth starts with small businesses - every day, entrepreneurs across the UK are investing, hiring and innovating, and Funding Circle exists to help them do exactly that. UK small businesses remain underserved by traditional lenders, and our technology, data capabilities and continued product innovation mean we are well-placed to meet their needs.
"We remain focused on continuing to deliver profitable growth as we back even more small businesses across the UK as their trusted financial partner."
At 1230 BST, the shares were down 7.2% at 213.50p.
Broker Shore Capital said: "Lisa joined the group in 2012 and has served as CEO for the last five years, overseeing a highly successful turnaround that has transformed Funding Circle into a profitable, cash-generative business. We understand she is not leaving to take up another role at this stage.
"While the transition timetable is lengthy, Lisa is highly regarded by both us and the market and we expect the announcement to be viewed negatively."
Shore said that with the upgraded guidance broadly in line with existing expectations and the CEO transition creating "an additional source of uncertainty", it is placing its 'buy' recommendation under review.
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