Last checked at 22 Feb 2021 07:00
22 February 2021
Orchard Funding Group PLC
("Orchard Funding Group" or the "Company" or the "Group")
Trading Update
Orchard Funding Group, the finance company which specialises in insurance premium finance and the professions funding market, provides the following trading update for the six months ended 31 January 2021.
Trading performance for the period was in line with the Board's expectations. Demand for funding has fallen across our markets, leading to a decrease in lending over the equivalent half year in 2019/2020. The Group's lending performance for the period was as follows:
|
| 31 January 2021 |
| 31 January 2020 |
| % increase/ (decrease) |
|
| £m |
| £m |
|
|
|
|
|
|
|
|
|
Lending |
| 30.04 |
| 37.85 |
| (20.63)% |
|
|
|
|
|
|
|
Average loan book |
| 27.61 |
| 33.07 |
| (16.51)% |
|
|
|
|
|
|
|
Both Barclays Bank plc and Conister Bank Limited have continued to provide a line of credit of £17.0m and £2.0m respectively. In addition, Toyota Financial Services (UK) PLC has provided the Group with a limited facility to fund Toyota insurance products only. The Board therefore considers it has adequate liquidity for its projected lending in all its markets.
Revenue for the first half is expected to be broadly in line with expectations, while costs have remained stable. Whilst the Board is confident of the long-term prospects of the Group, it remains mindful of the downward pressure on lending caused by COVID-19, consequential lockdowns and ongoing economic uncertainty in the second half.
Orchard Funding Group will be announcing its interim results for the six month period ended 31 January 2021 on 9 March 2021.
For further information, please contact:
Orchard Funding Group PLC +44 (0)1582 346 248
Ravi Takhar, Chief Executive Officer
Liberum (Nomad and Broker) +44 (0)20 3100 2222
Neil Patel
Richard Bootle
For Investor Relations please go to: www.orchardfundinggroupplc.com
Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014 as amended by The Market Abuse (Amendment) (EU Exit) Regulations 2019) prior to its release as part of this announcement.