Business
Full Year 2019 Results
Full Year 2019 Results.
About this update from Funding Circle Holdings Plc
[{"type":"text","content":"\n \n \n RNS Number : 8460F\n Funding Circle Holdings PLC\n 12 March 2020\n \n \n \n \n Funding Circle Holdings plc\n \n \n Full Year 2019 Results\n \n \n \n \n \n Embargoed until 7.00am, 12 March 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\"), the leading small and medium enterprise (\"SME\") loans platform in the UK, US, Germany and the Netherlands, today announces results for the year ended 31 December 2019 (\"2019\"). \n \n \n \n \n \n Samir Desai CBE, CEO and Founder, said: \n \n \n \n \n \n \"In 2019 we grew loans under management to a record £3.7bn up 19% year on year. The actions we took in 2019, in response to the uncertain economic outlook, reduced growth but improved investor returns and were the right response for the long-term benefit of the company and our customers.\n \n \n \n \n \n We start the year in a stronger position as a business and confident in delivering an accelerated pathway to profitability targeting Adjusted EBITDA break-even for the whole business in the second half of 2020.\n \n \n \n \n \n Our UK business was profitable in the second half of 2019 and loans under management in the US continues to follow a similar growth trajectory to the UK. We are reorganising our Developing Markets business, which represents c.8% of Group revenue but c.60% of Group Adjusted EBITDA losses in 2019, to deliver a better and more profitable model.\n \n \n \n \n \n Our new instant decision lending platform in the UK and the US has begun to roll out and will provide a step-change in the borrowing experience for SMEs.\" \n \n \n \n \n \n Financial Summary:\n \n \n \n \n \n · \n Revenue of £167.4 million (2018: £141.9 million) up 18% despite a challenging economic environment. \n \n \n · \n Adjusted EBITDA1 of negative £27.5 million (2018: negative £23.4 million) with loss margin of 16% (2018: 16%). \n \n \n · \n UK business operating profit of £3.0 million in H2 2019 (H2 2018: negative £5.4 million). The UK business represents c.65% of Group revenue. \n \n \n · \n Loss before taxation and exceptional costs of £49.9 million (2018: £45.0 million)2. Loss before taxation of £84.2 million (2018: £5...