- Funding Circle Holdings
- 05 September 2024 10:01:40
Source: Sharecast
The London-listed firm, a specialist in small business credit, said the first half had beaten expectations, with net income in the six months to 30 June up 32% at £79.1m.
UK term loan originations rose from £471m a year previously to £692m, while FlexiPay transactions increased to £226m from £90m.
As a result, pre-tax profits before exceptional items came in at £0.5m, compared to a loss of £7.4m a year previously.
Lisa Jacobs, chief executive, said: "The first half was stronger than our expectations.
"We were profitable a half earlier than we set out in our guidance in March, and are today upgrading our guidance to be profitable for the full-year, versus prior guidance of second half profitable."
The company also reaffirmed its medium-term outlook, for revenue growth of between 15% and 20% and pre-tax profit margins of more than 15%.
As at 0945 BST, shares in Funding Circle had soared 25% at 124p.
Earlier this year, Funding Circle announced plans to offload its US arm, which it sold in July for a gain of £10m. It also axed around 120 jobs, as a part of the streamlining programme, and launched a £25m share buyback programme intended to boost the share price.
Jacobs said: "We are delivering on the plan I laid out to be simpler, leaner and profitable while continuing to show growth."
A second buyback for up to £25m, to be launched once the first completes, was also announced on Thursday.