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Thanks for the auction update - really appreciate this kind of news.
75,000 delayed buy just printed. Held back for 1 hour
Hopefully thats another buy back just popped
I am interested to see how many shares they have purchased today for cancellation . deploying £25m will def take the liquidity out of the market.
The buy backs should add at least 10p a week depending on the quantity/volume they ingather. Now over 50p to buy a half decent size.
All the right ingredients for a multi bagger here. Cash at bank in hand higher than market cap. £25m Buyback. US business about to be sold allowing for further buy backs. UK business booming. Its an easy hold while the brokers buy in the shares at higher levels each day. £1.75 is my target by end May
The business is going forward and all the scaremongering from Sky news last year has been unfounded. Facing forward and growing . A few more sessions and this will be back over 50p. Chatbot must have been made redundant from the bank
Big finish into the close
Ignore that last post. February volume was 21m in total. Therefore a total of 10.5m can be re purchased this month. Thats £4.8m which should really motor the share price. US disposal will be well received too.
I actually think they have started buying back. That can buy up to 50% of the total Volume in Feb which was around 5m shares. Therefore they can buyback 2.5m shares or £1.25m this month.
I wonder if they have bought in any shares yet for cancellation .
Funding Circle, a prominent fintech firm specialising in small business lending, announced today a strategic shift in its operations aimed at curbing losses and revitalising its share value. Alongside its release of full-year results, the London-listed company unveiled plans for a £25 million share buyback initiative and disclosed intentions to divest its struggling US division.
The firm’s decision to embark on a share buyback program signals a proactive approach to address its share price, which has seen a significant decline since its 2018 initial public offering (IPO). Funding Circle’s shares have plummeted by over 93% from its IPO valuation of approximately £1.5 billion, reflecting investor concerns amid mounting losses and operational challenges.
Funding Circle reported widened losses of £33.2 million in 2023, compared to a pre-tax loss of £12.9 million in the previous year. The expansion into the US market, coupled with investments in its lend-now-pay-later offering Flexipay, contributed to the deepening losses. In light of these developments, the company intends to refocus its efforts on its profitable UK business segment and explore options for divesting its US operations.
Lisa Jacobs, CEO of Funding Circle, emphasised the company’s commitment to maximising shareholder value by addressing the undervaluation of its shares. Jacobs stated, “We believe the share price materially undervalues the business and as such will be buying back up to £25m shares,” indicating confidence in the company’s prospects despite recent challenges.
The announcement of the potential divestment of the US arm follows indications of interest from potential buyers. Jacobs highlighted the need for substantial cash and capital to sustain growth in the US, prompting the company to reassess its strategic priorities and streamline its operations.
As Funding Circle shifts its focus towards its UK business, it aims to capitalize on its core strengths while optimizing operational efficiency. The company’s FlexiPay offering, which nearly quadrupled to £234 million in 2023, underscores the potential for growth in its home market.
Investors responded positively to the news, with Funding Circle shares surging by 22% in early trading following the announcement. The company’s proactive measures and strategic realignment signal a concerted effort to navigate challenges and position itself for sustainable growth in the evolving fintech landscape.
Institutional stake building into the bargain too. These guys are quietly going about their business accumulating monthly. 1. Solid results. 2. 164m of cash Vs 158m Mkt cap. 3. Flex Pay up 500% and growing. 4. £25m buyback. 5. US loss making business about to be sold. You get all this for nothing as cash is higher than market cap.
The flex pay is growing link stink and so everyone knows that model is all covered by personal guarantees so theres no risk to funding circle. This could triple in pretty sharp order
Buyback is just the cherry on the top
Out and out buy at 42p regardless of the buyback
37p is resistance then its lift off. I am expecting a positive story on 13th with over £50m of cost savings now filtering through. Net margins very high and a refocussed Board ready to drive it forward at long last .