TIDMFCH
RNS Number : 4276Q
Funding Circle Holdings PLC
21 October 2019
21 October 2019
Funding Circle Holdings plc
Q3 2019 Update
Full-year guidance unchanged
Funding Circle Holdings plc ("Funding Circle"), the leading
small and medium enterprise ("SME") loans platform in the UK, US,
Germany and the Netherlands, today announces updates to its
statistics pages for the three months ending 30 September 2019 (the
"Quarter").
The data by country included in this announcement is also
available on the Company's website at
corporate.fundingcircle.com/investors/loan-performance-statistics.
Operational overview
-- Loans under management GBP3.7 billion, up 31% compared to Q3
2018. Year to date total originations of GBP1.8 billion vs GBP1.6
billion compared to the same period last year, up 9%.
-- Projected annualised returns for 2019 continue to show an improvement over recent years.
-- In July in the UK, Funding Circle completed a GBP232 million
asset-backed securitisation transaction adding 9 new institutional
investors onto the platform in the UK.
-- In August in the US, Funding Circle closed a $198 million
securitisation, its first asset-backed securitisation of US small
business loans, adding 18 new institutional investors onto the
platform in the US.
FY 2019 Outlook
-- Guidance for 2019 is unchanged; performance on track to meet market expectations.
Samir Desai CBE, CEO and co-founder, said:
"In the third quarter, loans under management reached GBP3.7
billion and projected returns for 2019 continued to show an
improvement over recent years. In what remains an uncertain
economic environment we continue to manage the business prudently,
which we are confident is the right course of action for the
long-term growth and development of our business."
Group performance
2019 YTD 2018 YTD % Q3 2019 Q3 2018 %
Loans under management GBPm 3,675 2,809 31% N/A N/A N/A
------ --------- --------- ---- -------- -------- -------
Originations GBPm 1,753 1,608 9% 561 565 (0.5%)
------ --------- --------- ---- -------- -------- -------
Reporting timetable
-- The next reporting date for loan performance statistics
(gross yield, projected annualised return and projected bad debt)
will be January 2020.
-- Full Year results will be released in March 2020.
Our statistics
Loans under management (million)
2012 2013 2014 2015 2016 2017 2018 2019
YTD
Group
(GBP) 52 145 366 860 1,362 2,107 3,148 3,675
----- ----- ----- ----- ------ ------ ------ ------
UK (GBP) 52 144 332 653 1,027 1,584 2,208 2,513
----- ----- ----- ----- ------ ------ ------ ------
US ($) N/A 54 261 354 577 939 1,110
------------ ----- ----- ------ ------ ------ ------
DE (EUR) N/A 27 30 65 131 170
------------------- ----- ------ ------ ------ ------
NL (EUR) N/A 16 40 95 124
-------------------------- ------ ------ ------ ------
Originations (million)
2012 2013 2014 2015 2016 2017 2018 2019
YTD
Group
(GBP) 49 130 311 721 1,065 1,738 2,292 1,753
----- ----- ----- ----- ------ ------ ------ ------
UK (GBP) 49 129 279 531 823 1,264 1,531 1,172
----- ----- ----- ----- ------ ------ ------ ------
US ($) N/A 334 281 514 792 575
------------ ------------ ------ ------ ------ ------
DE (EUR) N/A 33 19 55 105 84
------------ ------------ ------ ------ ------ ------
NL (EUR) N/A 21 34 81 64
------------------- ------------- ------ ------ ------
Gross Yield
2012 2013 2014 2015 2016 2017 2018 2019
YTD
UK 9.2% 8.4% 9.9% 9.5% 9.5% 9.5% 9.7% 9.9%
----- ----- ----- ----- ------ ------ ------ ------
US N/A 14.5% 13.2% 12.3% 12.8% 12.9%
------------ ------------ ------ ------ ------ ------
DE N/A 6.7% 9.5% 9.5% 10.2% 10.6%
------------ ------------ ------ ------ ------ ------
NL N/A 8.6% 10.7% 11.6% 11.0%
------------------- ------------- ------ ------ ------
Projected annualised return range (after fees and bad
debt)(1)
2012 2013 2014 2015 2016 2017 2018 2019
YTD
UK 7.1-7.2% 6.0-6.2% 7.2-7.4% 6.5-6.8% 5.0-5.5% 4.0-4.6% 4.2-5.2% 5.0-7.0%
--------- --------- --------- --------- --------- --------- --------- ---------
US N/A 2.6-2.8% 4.1-4.9% 5.3-6.2% 5.0-6.3% 5.7-7.8%
-------------------- -------------------- --------- --------- --------- ---------
DE N/A 0.1-1.0% 2.3-4.1% 5.0-6.9% 5.0-7.0% 5.0-7.0%
-------------------- -------------------- --------- --------- --------- ---------
NL N/A 3.7-4.5% 5.6-7.6% 6.0-8.0% 6.0-8.0%
------------------------------- -------------------- --------- --------- ---------
Projected bad debt rate range(2)
2012 2013 2014 2015 2016 2017 2018 2019
YTD
UK 1.3-1.3% 1.5-1.6% 1.7-1.9% 2.0-2.2% 3.1-3.6% 4.0-4.6% 3.6-4.6% 2.1-4.0%
--------- --------- --------- --------- --------- --------- --------- ---------
US N/A 10.7-10.9% 7.5-8.3% 5.5-6.4% 6.1-7.3% 4.8-6.8%
-------------------- -------------------- --------- --------- --------- ---------
DE N/A 4.7-5.6% 4.5-6.2% 1.8-3.6% 2.4-4.3% 2.8-4.7%
-------------------- -------------------- --------- --------- --------- ---------
NL N/A 3.2-4.0% 2.4-4.3% 2.9-4.8% 2.3-4.2%
------------------------------- -------------------- --------- --------- ---------
S
Media Enquiries:
Funding Circle
David de Koning - Director of Investor Relations and
Communications (0203 927 3893)
Headland Consultancy
Mike Smith / Stephen Malthouse (020 3805 4822)
About Funding Circle:
Funding Circle (LSE: FCH) is a global SME loans platform,
connecting SMEs who want to borrow with investors who want to lend
in the UK, US, Germany and the Netherlands. Since launching in
2010, investors across Funding Circle's geographies - including
retail investors, banks, asset management companies, insurance
companies, government-backed entities and funds - have lent more
than GBP8 billion to 77,000 businesses globally.
Forward looking statements and other important information
This document contains forward looking statements, which are
statements that are not historical facts and that reflect Funding
Circle's beliefs and expectations with respect to future events and
financial and operational performance. These forward looking
statements involve known and unknown risks, uncertainties,
assumptions, estimates and other factors, which may be beyond the
control of Funding Circle and which may cause actual results or
performance to differ materially from those expressed or implied
from such forward-looking statements. Nothing contained within this
document is or should be relied upon as a warranty, promise or
representation, express or implied, as to the future performance of
Funding Circle or its business. Any historical information
contained in this statistical information is not indicative of
future performance.
The information contained in this document is provided as of the
dates shown. Nothing in this document should be construed as legal,
tax, investment, financial, or accounting advice, or solicitation
for or an offer to invest in Funding Circle.
Definitions and notes to the editor:
1. The projected annual return shows how loans are estimated to
perform. Loans are shown by the year they were taken out, and are
after fees and bad debt. Returns equal gross yield minus net losses
minus servicing fee and is estimated, using an internally managed
model, by cohort of origination incorporating actual returns
received for each cohort and adding future expected returns which
are determined using the same aforementioned model. Net yield is
compounded to recognise re-investment. These expectations may be
revised, for example if macroeconomic conditions change, and the
projected return, projected gross yield and the projected bad debt
rate may be adjusted to reflect this.
2. The projected bad debt rate shows the projected annualised
percentage of loans, by loan amount, that will not be repaid. Loans
are shown by the year they were taken out and include recoveries.
It can take up to five years for loans to be fully repaid, so the
projected return, projected gross yield and projected bad debt rate
take into account how each year of loans are performing and how
Funding Circle expects them to perform in future. These
expectations may be revised, for example if macroeconomic
conditions change, and the projected return, projected gross yield
and the projected bad debt rate may be adjusted to reflect
this.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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