Business
2020 Half Year Report
2020 Half Year Report.
About this update from Funding Circle Holdings Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 9380Z\n Funding Circle Holdings PLC\n 24 September 2020\n \n \n \n \n Funding Circle Holdings plc\n \n \n Half Year 2020 Results\n \n \n \n \n \n Embargoed until 7.00am, 24 September 2020\n \n \n \n \n \n THIS ANNOUNCEMENT INCLUDES INSIDE INFORMATION AS DEFINED IN ARTICLE 7 OF THE MARKET ABUSE REGULATION NO. 596/2014\n \n \n \n \n \n Funding Circle Holdings plc (\"Funding Circle\"), today announces results for the six months ended 30 June 2020. \n \n \n \n \n \n \n Samir Desai CBE, CEO and Founder, said: \n \n \n \"We started Funding Circle after the financial crisis to help small businesses access funding, and we are proud that since becoming accredited to SME government guarantee programmes in the UK and US, we have approved more than £2 billion of loans, and are the 5th largest CBILS lender with c.20% market share of loans approved.\n \n\"In H1, we grew total income 24% to £101.2m and improved free cash flow to negative £9.6m. AEBITDA was down, primarily due to the impact of Covid-19 on the investments we held for sale. We remain focused on profitable growth and are reinstating our target of close to AEBITDA break-even for the business in the second half of 2020.\"\n \n\"We believe that Covid-19 has led to an acceleration in the adoption of online small business lending and small businesses are increasingly drawn to the unique Funding Circle model, which provides access to finance in a fast and affordable way with excellent customer service. Our Instant Decision lending technology launched this year is already transforming the SME borrowing experience with average loan applications being completed in 6 minutes, and decisions in 9 seconds.\n \n\"Our advanced data driven credit assessment and the actions we have taken are protecting investor returns - after applying our central Covid-19 stress scenario, we expect all cohorts in the UK to deliver positive annualised returns to investors.\"\n \n \n \n \n \n \n Financial Summary:\n \n \n \n \n \n · \n Total Income of £101.2m (H1 2019: £81.7m) up 24% supported by investment income.\n \n \n · \n Adjusted EBITDA\n 1\n of negative £84.1m (H1 2019: negative £19.7m), primarily due to the impact of Covid-19 on the investments we held for sale; includes negative £59.7m AEBITDA from investment products. ...