Orchard Funding lifts full-year earnings expectations

(Sharecast News) - Orchard Funding said in an update on Friday that it expects earnings for the financial year ending 31 July to exceed market expectations by more than 20%, following stronger-than-anticipated performance in its insurance premium finance business. The AIM-traded specialist lender cited increased margins and the recent reduction in base interest rates as key drivers of growth.

It said trading had remained positive throughout the year, particularly within its core insurance premium finance segment, helping to support revenue growth.

"We continue to focus on the controlled and conservative growth of our business," said chief executive officer Ravi Takhar.

"We are pleased to be able to notify the market that we reasonably believe, subject to final audit, that we will exceed current market earnings guidance by over 20%."

Takhar added that the company remained optimistic about its outlook, supported by in-house software capabilities and a loyal, experienced workforce.

At 1520 BST, shares in Orchard Funding Group were up 18.45% at 61p.

Reporting by Josh White for Sharecast.com.