Share Prices & Company Research

Market News

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
Get in touch today
Join Redmayne Bentley
Talk to us now about opening a new account or transferring your account from another provider
0113 243 6941
Get in touch today
Contact your local office
Contact your local office to find out more
The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.
We use cookies on this site to improve your experience and help us provide you with a better website. An explanation of the cookies we use and their purpose can be found within our Cookie Policy. Your continued use of this site means you consent to the use of cookies.