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02 Jul 2019 | 07:32

Funding circle cuts outlook on revenues as economic uncertainty weighs on loan demand

Funding circle cut its outlook on revenues as an uncertain economic outlook hurt demand for loans.

Funding Circle said it expected 2019 revenue growth to be about 20%, versus previous guidance of 40%, while the adjusted earnings (EBITDA) loss margin for 2019 was expected to be better than 2018, the company said.

The dour outlook comes even as the company reported an approximately 30% jump in revenues for the first half of the year, with adjusted EBITDA loss margin expected to be about 25%.

The company reported loan growth of approximately 37% year-on-year for the first half, with new loan originations rising 14% to £1.2bn.

'The uncertain economic environment has reduced demand from small businesses and led us to proactively tighten lending criteria,' said Samir Desai CBE, CEO and co-founder.

'As a result, revenue growth will be impacted. We recognise that this is a change from our previous guidance, but we are taking the prudent course of action for the long-term growth and development of our business.'



Story provided by StockMarketWire.com
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