Funding Circle Holdings PLC - London-based peer-to-peer lender - Reports 2020 pretax loss of GBP108.1 million, widened from GBP84.2 million in 2019. 2020 total income was GBP222.0 million, up 25% from GBP177.3 million in 2019, partially driven by loans under management for 2020 of GBP4.21 billion, which are up 13% from GBP3.73 billion the year before.
Posts 2020 adjusted loss before interest, tax, depreciation and amortisation loss of GBP63.8 million from GBP27.5 million loss in 2019, while swinging to adjusted Ebitda profit of GBP20.3 million in the second half of financial 2020 from a GBP84.1 million loss in the first half of the year. Says this exceeds previous guidance of GBP20 million and is a "milestone" for the business.
"Our machine learning and technology platform is transforming the small business borrowing experience with instant decisions for 50% of applications. Average loan applications are completed in six minutes and decisions follow in just nine seconds, providing borrowers with an unmatched experience. In the next 12 months we will use this technology to launch new products to help solve more small business funding problems," says Founder & Chief Executive Samir Desai.
Looking ahead, Funding Circle says it expects to be profitable in 2021 on an adjusted Ebitda basis.
"Trading has been strong since the start of 2021. As we transition to operating our core loan product alongside government guarantee programmes in the UK and US from the second quarter of 2021 onwards, we expect some initial reduction in lending," says Funding Circle.
Current stock price: 148.60 pence
Year-to-date change: up 65%
By Zoe Wickens; zoewickens@alliancenews.com
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Funding Circle (FCH)