Funding Circle Holdings
plc
Simplification and streamlining of
UK business and Board Change
Funding Circle Holdings plc (“Funding Circle”) today provides
an update on progress towards its priorities of simplification and
profitability as set out at full-year results in March.
As part of its ongoing commitment to profitability, Funding
Circle has launched a set of cost efficiency actions. This process
will result in a simpler, leaner and better positioned UK focused
operation. These actions will deliver an annualised run rate cost
saving of ~£15 million in 2025 and an expected reduction in the
overall number of roles by c.1201.
Non-recurring costs to achieve these changes are expected to be
approximately £5m, which will be recognised in 2024.
Oliver White, CFO, has informed the Board of his intention to
stand down from his role with a transition to begin following
publication of first-half results in September. He will leave the
Board at the end of 2024. He will be succeeded by Tony
Nicol2, currently
Director of Finance and Investor Relations and with Funding Circle
for six years, previously Group Financial Controller at IG
Group.
Lisa Jacobs, Chief Executive Officer commented:
“We are pleased to report continued
momentum on the path we set out in March to become a simpler,
profitable business. The reduction in roles is not a decision we
took lightly, and I would like to thank all the departing team for
their hard work and commitment.
I
would also like to thank Oliver for his unwavering dedication to
Funding Circle - it has been a pleasure to work alongside him. I am
delighted to see Tony, who has been with the Group for six years,
stepping up into the CFO role. Looking forward, we will
continue to execute against our plan to capture growth in a large
underserved market as a simpler, profitable UK
business.”
Year to date performance is in line with expectations and the
Group remains on track to meet full-year
guidance3.
In the US, discussions regarding a potential transaction are
progressing well and an update on the outcome will be provided in
due course.
Funding Circle will announce H1 2024 results on 5 September
2024.
Notes:
-
c.14% versus the December 2023 year end figure, excluding US
roles.
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Tony Nicol joined Funding Circle from IG Group in 2018. At IG
Group, as Group Financial Controller, Tony was responsible for all
internal and external reporting. Earlier in his career, Tony worked
at PWC from 1998 to 2015. Tony was appointed director of SME Credit
Realisation Fund Limited on 19 October 2022. There is no additional information which is
required to be disclosed under paragraph 9.6.13R of the Listing
Rules of the Financial Conduct Authority.
-
Guidance for 2024 as set out at full-year 2023 results on 7
March 2024 given below:
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FY 2024
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The UK businesses (UK Loans and FlexiPay)
will be PBT positive from H2 2024
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UK Loans
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FlexiPay
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Total income
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>10% growth vs. 2023
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3x growth vs 2023
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PBT
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Margins of 8-12%
(20-25%
AEBITDA margins)
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Continued investment, with losses at a similar level to
FY23
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Contacts:
Funding Circle Investor
Relations
Tony Nicol
ir@fundingcircle.com
Joint corporate brokers
Investec: Bruce Garrow / Kamalini Hull (+44 20 7597
4000)
Deutsche Numis: Stephen Westgate / Jamie Loughborough (+44 20
7260 1000)
Funding Circle Media
Relations
Angeli Everitt (+44 20 3830 1325)
press@fundingcircle.com
Headland Consultancy
Stephen Malthouse / Jack Gault (+44 20 3805 4822)
About Funding Circle:
Funding Circle (LSE: FCH) is the UK’s leading SME lending
platform. Its mission is to build the place where small businesses
get the funding they need to win.
Funding Circle enables small businesses to access funding –
offering an unrivalled customer experience powered by data and
technology.
For institutional investors, Funding Circle provides access
to an alternative asset class in an underserved market, with robust
and attractive returns.
Globally, Funding Circle has extended more than £16bn in
credit to c.150,000 businesses.