LONDON (Alliance News) - Small and medium enterprise loans platform Funding Circle Holdings PLC on Thursday reported its first annual results since listing in September, saying it delivered against its IPO guidance.
In 2018, Funding Circle reported a revenue increase of 50% to GBP141.9 million from GBP94.5 million, in line with its target at the time of its initial public offering in London.
The company's pretax loss for 2018 widened, however, to GBP50.7 million from GBP36.3 million in 2017.
Funding Circle's operating expenses jumped 47% to GBP193.5 million with staff costs rising 51% to GBP79.2 million on IPO-related costs, such as share-based payments. The company's marketing costs increased 49% to GBP57.8 million.
Funding Circle's loans under management increased 49% to GBP3.15 billion from GBP2.11 billion with originations increasing 32% to GBP2.29 billion from GBP1.74 billion in 2017.
The company said SME net lending in the UK through its platform exceeded that from all UK high street lenders combined: GBP723 million compared to GBP515 million.
In the UK, Funding Circle's loans under management increased 46% to GBP2.18 billion from GBP1.49 billion the year before, with originations up 32% to GBP1.53 billion.
In the US, Funding Circle's loans under management increased 72% to GBP736 million as originations rose 72% to GBP596 million.
"2018 was another record-breaking year for Funding Circle. The business delivered against the guidance set out at the time of our IPO and it is especially pleasing to report revenue growth and a positive segment adjusted earnings before interest, tax, depreciation and amortisation of GBP7 million," said Chief Executive Samir Desai.
Funding Circle said it recognises the "increasing economic uncertainty" caused by Brexit and is prepared for all outcomes. The company said 30% of its operations are overseas but said its UK business will not be "directly affected" on day-to-day basis.
Looking toward 2019, Funding Circle said it expects revenue above GBP200 million with its segment adjusted Ebitda expected to double.
Desai added: "As we look ahead to the rest of 2019, we remain focused on continuing our strategy of investing for growth and building on our number one market positions across the UK, US, Germany and the Netherlands.
"We have exciting plans to enter the Canadian market later this year and to launch two new institutional investor products in 2019 that will significantly increase the universe of investors who can access Funding Circle loans."
Shares in Funding Circle were up 2.6% Thursday at 360.00 pence each.
Funding Circle (FCH)