We would love to hear your thoughts about our site and services, please take our survey here.
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
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.
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 .
£50m of cost savings should now be feeding through to cash . Interest rates will be higher for longer helping metro to radically increase profits. The bank must be on a trajectory for £70m of annualised profits once the costs have been fully eliminated. Also big talk about the Great British ISA allowing investors to stick £5k pa into British companies annually. You won't get these below 40p for much longer
Page is set to oversee a 20 per cent cut in staff and a potential reduction in opening hours at the branches Metro Bank has built its name on. He will also be tasked with boosting the bank’s share price, which is down 77 per cent over the last year.