(Sharecast News) - Finance group Orchard Funding said on Friday that its interim trading performance had exceeded internal expectations, with demand for funding rising on average across most lending lines.
Orchard stated lending was up 27% year-on-year at £38.2m, while its average loan book increased 21.2% to £33.5m.
"As a result of this loan book momentum in period, the board expects revenue for the year to exceed its prior expectations, while group costs have remained fairly stable and largely unchanged. resulting in an uplift in profitability for the year," said Orchard.
The AIM-listed firm also noted that towards the end of the previous financial year, it had refinanced its borrowings, with Toyota Financial Services providing it with a facility of £15.0m and Natwest Bank offering up £5.0m. Of this £20.0m, Orchard said £11.4m was in use at the end of January.
Since the end of the period, Orchard also issued a five-year bond, further bolstering liquidity.
As of 1105 GMT, Orchard Funding shares were up 4.07% at 54.12p.
Orchard Funding (ORCH)