No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Fintech firm Funding Circle was up double digits in early trade after posting a strong firsthalf performance, with rapid revenue and profit growth and clear momentum across both its Term Loans and FlexiPay/Card businesses.
Funding Circle said revenues rose 50% to about 138m, while pre-tax profits climbed to roughly 23m, up sharply from 6m a year earlier. Credit extended increased to 1.7bn, and assets under management grew to 3.3bn, reflecting broadbased demand and a fullperiod contribution from its shorterterm loan product launched late last year.
The FTSE 250-listed firm stated SME demand was strong in Q1 before normalising in Q2 ahead of the quieter summer period.
Term Loans originations rose to 1.05bn, with the division continuing to show strong operating leverage and cash generation, and Funding Circle said this had enabled increased investment in FlexiPay and Card, where transactions surged 71% to 640m.
Unrestricted cash increased to 136m, supported by trading performance and monetisation of the shorterterm loan portfolio, partly offset by the ongoing buyback.
Funding Circle said the results had left it firmly on track to meet FY26 guidance of revenues of at least 235m and pre-tax profits of no less than 35m.
It also added that the group remains capitallight, with 72m of shares repurchased to date under its buyback programmes, equivalent to 18% of issued share capital.
Chief executive Lisa Jacobs said: "It's been another standout six months for Funding Circle. We've built upon last year's momentum with strong revenue and profit growth, driven by our continued product development and market demand. Small businesses power the UK economy, driving innovation, creating jobs and fuelling regional growth. We're proud to have helped a record number of businesses in H1 access the finance they need to win.
"We remain focused on profitable growth - backing even more small businesses across the UK with the funding they need to succeed."
As of 0945 BST, Funding Circle shares had shot up 16.55% at 206.28p.
Reporting by Iain Gilbert at Sharecast.com
See latest RNS at Investegate
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.