Funding Circle (FCH) H2 2024 earnings summary

Executive summary

• Achieved a successful year of transformation, focusing on becoming a simpler, leaner, and profitable business, with a full exit from the U.S. market and a sharpened focus on the U.K.

• Sold U.S. business for a £10m gain and restructured U.K. operations, delivering £15m in annualized cost savings.

• Delivered above-market expectations for group profit, with strong revenue and credit growth, and launched two share buyback programs, repurchasing over 11% of share capital by February 2025.

• Confirmed medium-term guidance for 15%-20% revenue CAGR and 15%+ PBT margins by 2026, targeting at least £200m revenue and £30m PBT.

• Expanded product set to include borrow, pay later, and spend solutions, serving more SME needs.

Financial highlights

• Revenue grew 23% year-over-year to £160m; credit extended increased 47% to £1.9bn.

• Group profit before tax and exceptionals reached £3.4m, a significant turnaround from a £9.9m loss in 2023.

• Term loans business delivered 13.3% PBT margin, up from 5.2% the prior year.

• FlexiPay revenue grew 3.4x year-over-year to £17.5m; active FlexiPay customers rose from 6,000 to over 11,000.

• Unrestricted cash at year-end was £151m, with net assets of £217m.

Outlook and guidance

• Medium-term guidance reaffirmed: 15%-20% revenue CAGR and 15%+ PBT margin by 2026.

• Revenue target of at least £200m and PBT of at least £30m in 2026.

• Early 2025 performance is strong, with continued focus on profitable, customer-focused growth.