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Some decent Director buys as well.

I thought it was a solid set of results and a realistic but positive outlook. I expect an increase in the share price especially with £300 million in assets including £200 million cash and a forecast of £140 million in income for the full year.

Should have waited, you could have got more at .33.

That and 4 billion US$ of debt.

3 buys x 1 million shares should offer some hope for a return to more normal value.

It seems as though someone has decided Funding Circle doesn't have much of a future.

Yes, apologies, I meant Jupiter fund. And still the share price continues its fall

So JP Morgan have been off loading. Share price trading at a 70% discount to this time last year despite a positive annual report and positive news since then. Hopefully its reached the bottom of the downwards trajectory and can start to show some growth. An institutional buyer would perk things up.

All I can think is that markets are forward looking and a recession is on the way so the MMs are pricing in the mother of all market crashes.

Bizarre share price movement again. Year lows followed by 20% rises although I do think someone had been dumping starts which probably accounts for the low price. I expect to see a TR1 shortly.

A 3rd of the price per share compared to this time last year. Positive news seems to have a negative effect on this share. I wonder why the market sentiment is so particular poor on FCH at the moment. I know there's not much good news out there but FCH appears to be in good shape.

Financial Highlights Continuing Operations1 FY21 FY20 Change Revenue £303.3m £250.1m 21.3% Adjusted EBITDA2 £69.8m £59.6m 17.2% Adjusted EBITDA margin 23.0% 23.8% (0.8pp) Adjusted EBITA3 £31.7m £13.4m £18.3m Adjusted EBITA margin 10.4% 5.3% 5.1pp Adjusted basic earnings/(loss) per share 1.52p (4.64)p 6.16p ROCE4 22.1% 10.7% 11.4pp Net debt leverage5 1.5x 2.8x 1.3x Other extracts Operating profit / (loss) £34.5m £(4.7)m £39.2m Profit / (loss) before tax £6.1m £(29.6)m £35.7m Basic earnings/(loss) per share 1.05p (15.13)p

Strong trading performance with new operating model driving improved profitability o 2021 like-for-like6 revenues up 20% year-on-year, returning to pre-pandemic 2019 levels o Capital-light Services revenue 24% ahead of 2020 on a like-for-like6 basis, o EBITDA and EBITA materially ahead of 2020 with EBITA margin almost twice prior year; reflective of operating model effectiveness and continued strong price control o Technology-led, low-cost operating model underpinning improved Group returns with ROCE4 increasing to 22.1%, up 11.4pp compared to 2020 • Materially stronger balance sheet with leverage on a non-IFRS16 basis reduced 1.8x to 0.8x o Net debt7 reduced to £45.4m (2020: £120.4m) o Sales of Laois completed for net proceeds of £10.0m and All Seasons Hire for £54.3m o Refinancing completed, reducing the ongoing annual interest charge to around £3m8 (2020: £16.3m) • Technology-led low capital intensity operating model continues to drive accelerated growth o c.60% of transactions now processed through HSS Pro, our new digital platform, enabling improved enquiry conversion as customers value the enhanced experience o Restructured organisation into two divisions, already delivering improved performance o HSS ProService – focused on customer acquisition, sales enquiry conversion and leveraging digital assets; and o HSS Operations – focused on customer fulfilment and service o Low-cost builders merchant network expanded to 55 locations (December 2020: 24), now representing 16% of customer orders in England & Wales. 44% like-for-like9 revenue growth

Not before time. 4 months since year end seems an unduly long time to publish results. I hope they are as positive as the last 6 months trading update.

STAMFORD, CT, March 22, 2022 - Pitney Bowes Inc. (NYSE: PBI), a global shipping and mailing company that provides technology, logistics, and financial services, today announced it has partnered with Funding Circle (LSE: FCH), a leading online small business lending platform, to provide loans to their small business customers.

 

Powered by Funding Circle's world class machine learning and technology platform, Pitney Bowes will offer small business term loans to their customers, who will benefit from Funding Circle's streamlined online application and loan origination process with market competitive rates. With these capabilities, customers will be able to get access to critical funds in as little as 48 hours.

 

This pilot program aims to advance the lending experience for Pitney Bowes small business customers at a time when many small businesses are increasingly looking for growth capital. Seven in ten business owners (72%) have said they feel they will need financing this year, according to Funding Circle's 2021 Small Business Survey [1].

 

"America's 32.5 million small businesses are the driving force behind our economy, but the number of small business loans approved by large banks has halved in just two years," said Christopher Johnson, Senior Vice President and President, Pitney Bowes Financial Services. "Our partnership with Funding Circle will help business owners on Main Street get the working capital they desperately need to grow their business. In addition, it positions Pitney Bowes for long-term growth, as we create new value for our clients with new offerings."

 

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Share Price:72.90

Change: 10.90 (17.58%) 

Last checked at 13:54:23

FCH News FCH Professional News

Berenberg starts Funding Circle at 'buy', shares surge

Mon, 21st Mar 2022 11:34

(Sharecast News) - Funding Circle surged on Monday after Berenberg initiated coverage of the stock at 'buy' as it took a look at specialist lenders.

The bank, which set a price target of 120p on Funding Circle, noted that the company has developed a highly automated lending platform with about £4.5bn of loans under management.

"The first few years as a public company have not been easy for Funding Circle - its valuation has fallen by circa 80% since its IPO in 2018. However, we view this pessimism as somewhat misplaced. The company has already addressed a number of the issues with its business model and, from the start of this year, has had a new CEO at the helm."

Berenberg said there are growth opportunities for Funding Circle both in its existing market and with the launch of new products.

Financial summary:

· Operating income of £165.5 million (2020: £155.7 million) up 6.3% driven by higher servicing fees.

· Investment income of £41.4 million (2020: £66.3 million) down 38% as investments were monetised in line with strategy.

· Total income of £206.9 million (2020: £222.0 million) down 7% as a result of anticipated lower investment income.

· Fair Value gain of £28.6 million (2020: losses of £118.3 million) due to positive revaluations, reflecting underlying credit performance.

· Net Income of £235.5 million (2020: 103.7 million) up 127% reflecting positive revaluations in Fair Value.

· Loans under management of £4.46 billion (2020: £4.21 billion) up 5.8% and originations of £2.30 billion (2020: £2.74 billion) down 16% year-on-year, reflecting the conclusion of CBILS and PPP.

· AEBITDA of £91.8 million (2020: negative £63.8 million), UK business AEBITDA of £61.9 million (2020: £6.5 million).

· Operating expenses reduced 12% to £167.4 million (2020: £191.3 million) following cost management initiatives.

· Operating profit of £64.2 million (2020: negative £106.3 million), UK business: £44.3 million operating profit (2020: negative £7.9 million).

· Net assets of £288.0 million (2020: £217.6 million), up 32% and comprising £224.0 million cash (2020: £103.3 million).

 

Lisa Jacobs, CEO, said:

 

"2021 was a successful year for Funding Circle. We continued to deliver a superior customer experience through our world-class technology, with over 70% of UK applications now receiving an instant decision. SMEs are increasingly using digital channels to manage all aspects of their business and this trend is here to stay.

 

Our focus for the last two years has been on profitable growth and today's results highlight the excellent progress we have made. I am particularly proud to announce AEBITDA of £92 million and £64 million of operating profit, exceeding our previous guidance.

 

We are in a strong position as a business and as we look ahead to the rest of 2022 and beyond, there is a bright future ahead of us. A decade of R&D is now coming to fruition as we begin to empower small businesses to not only borrow, but pay and spend as well".

15% gone since Friday morning. What on earth is going on? 50% of the company value gone in a couple of months. I can only think the market is expecting bad news but based on what? Troubling times for the Funding Circle share price. I bought at about 98p and am over 20% down already.

All of which begs the question, whats holding the price back?