Last checked at 10 Jun 2020 07:00
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 in response to recent market developments as a result of the COVID-19 pandemic.
Since the release of our financial statements for the six months to 31 January 2020 on 23 March 2020, the acceleration of COVID-19 has significantly impacted lending markets. Whilst not materially impacting our existing book, in line with the experience of many lending institutions the COVID-19 outbreak has impacted the demand for new lending. As a result, our lending for the full year is expected to be below market expectations.
Whilst our lending is expected to be below market expectations, we continue to receive revenue indirectly linked to lending (for example, the use of our software system) and this type of revenue has been stable. We are expecting, therefore, that despite lending falling our revenue will come close to current market expectations.
Our costs for the full year are now expected to be lower as certain costs associated with the banking licence application have been deferred until the financial year ended 31 July 2021. Accordingly, whilst additional provision has been made for impairments as a result of COVID-19, we now expect that earnings for the full year will be higher than current market expectations.
Orchard is a resilient and cash generative business with a robust balance sheet. We are therefore responding to the impact of COVID-19 from a position of strength.
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
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.