Funding Circle Plc: Full Year 2023 Results Announced

Funding Circle Holdings plc released its financial results for the full year ended 31 December 2023, highlighting a year of solid performance and strategic advancement towards profitability in the UK market. The company's total income saw a growth of 7% to £162.2 million, with the UK Loans business registering a substantial profitability increase.

Lisa Jacobs, CEO of Funding Circle, expressed satisfaction with the performance and progress made in 2023, pointing out the successful expansion of product offerings in the UK. Despite challenging macroeconomic conditions, the company focused on responsible service to its small business customers, achieving robust loan returns. The UK business, comprising UK Loans and FlexiPay, is expected to become PBT profitable in the second half of 2024.

The document outlines strategic investments and developments, including a £25 million share buyback program signifying confidence in the business's undervalued share price. The UK market remains a focal point, with significant advancements in the FlexiPay business and continued profitability in UK Loans. Emphasis was placed on the company's strategic shift away from the US business, hinting at potential divestment due to capital requirements for growth.

As part of its future outlook, Funding Circle anticipates net income growth of 15-20% CAGR over the next 3-4 years, with PBT margins exceeding 15%. The company remains committed to its mission of assisting SMEs in accessing necessary funding through a superior customer experience driven by technology and innovation.