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Interim Results

Funding Circle SME Income sees solid progress

14 November 2016 07:24

Funding Circle SME Income Fund reports solid progress in the six months since the beginning of April.

The company, which commenced trading on 30 November 2015, reports total comprehensive income for the six months to the end of September, of £5.37 million (period ended 31 March 2016: £1.28 million).

Chairman Richard Boleat told shareholders that since his last update on 23 June the company had achieved the following milestones:

- Completion of an additional capital raise of approximately £15 million under the tap programme. - Completion of the structured finance transaction with the European Investment Bank, which was announced to the market on 17 June. - Payment of two quarterly dividends amounting to 1 pence and 1.625 pence per share, the latter of which was at a rate consistent with full investment and in accordance with the full investment target yield specified in the Company's IPO prospectus.

He said: "Macroeconomic conditions in the UK and the US, being the company's key geographical exposures, remain reasonably benign, and we see no likelihood of a material change in monetary policy or economic conditions in the short term, consistent with the views of other commentators and analysts.

"This stable environment is supportive of the company's prospects. Nevertheless, the results of ongoing portfolio stress testing continue to support the expectation that the company will be able to continue to deliver returns substantially in excess of the risk free rate in the face of a reasonably conceivable and historically experienced economic downturn."

He added: "The Board does not see the impact of either the Republican victory in the US presidential election or a 'hard Brexit', being the two key geopolitical risks applicable to our key markets, as being likely to have a material short term effect on our return performance or credit risk.

"We fully hedge foreign currency exposures back to Sterling by virtue of a third party managed currency hedging programme and have no plans to change this very effective arrangement."

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Related Company: FCIF

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