By John Reynolds on Monday 21 October 2019
Funding Circle CEO Samir Desai warns of an “uncertain economic outlook”.
Shares in peer-to-peer lender Funding Circle climbed over 10 percent after its loans under management soared 31 percent to £3.7bn, but the company cautioned of "an uncertain economic environment".
Funding Circle today updated the market on its financial performance for the period ending September 30 and retained its guidance for the year.
It said loans under management had grown to £3.7bn compared to £2.8bn the year previous.
Funding Circle reported that loan originations were up from £1.6bn in 2018 to £1.8bn in 2019.
Shares in Funding Circle, which has around 80,000 retail investors, were up over 11 per cent to £1.14 in early trading on Monday.
Samir Desai CBE, CEO and co-founder, said: “In the third quarter, loans under management reached £3.7 billion and projected returns for 2019 continued to show an improvement over recent years."
"In what remains an uncertain economic environment we continue to manage the business prudently, which we are confident is the right course of action for the long-term growth and development of our business."
Funding Circle connects institutional and retail investors with small businesses that need loans.
It allows investors to withdraw funds before their loans mature by selling the loan parts on to other investors.
In August this year, Funding Circle, which had a disappointing float last year, reported a pre-tax loss of £31m over the last six months, compared to a £27m loss the year previous.
Revenues were up 29 per cent to £81.4m but costs such as hiring new staff keep the company in the red.
Although shares in Funding Circle were up today, shares in the company have plummeted more than 75 per cent to 98p since its IPO in 2018.