Funding Circle Holdings Limited FY 16 results
27 Sep 2017
Funding Circle Holdings Limited, the world’s leading lending platform for small businesses, announces its FY results for the year ended 31 December 2016.
- Revenue rose by 59% to £50.9m (2015: £32.0m)
- Total loans outstanding rose 61% to £1.37bn (2015: £845.6m)
- Total comprehensive loss fell to £35.7m (2015: £36.9m) due to continued investment in technology, marketing and staffing – overall loss margin narrowed to 70% (2015:116%).
- UK business was cashflow positive in Q4 2016 and has continued to generate positive cashflow through the first half of 2017
- Group operating results for H1 2017 – revenue accelerated and approximately doubled year-on-year
- April 2016, Funding Circle facilitated the first securitisation of small business loans originated via a lending platform in Europe, these were rated by Moody’s and Standard & Poor’s
- June 2016, Funding Circle UK secured £100 million investment from the European Investment Bank
- Approximately 10,000 businesses accessed funding from investors in 2016, creating an estimated 25,000 new jobs across the UK, US, Germany and the Netherlands
- Approximately 15,000 retail investors joined Funding Circle UK in 2016; in total 63,000 UK retail investors have now earned £135m in net interest
Post Year-End Highlights
- January 2017 Funding Circle raised £82m equity capital
- April 2017 Funding Circle SME Income Fund which purchases loans through the Funding Circle platform raised net proceeds of £140m through a C share issue
- August 2017 Funding Circle and Aegon announced £160m investment in UK small business loans
- August 2017 Funding Circle launched new brand identify and rolled out a substantial advertising campaign in the UK
Samir Desai, CEO at Funding Circle, commented: “2016 was another record breaking year for Funding Circle. We were pleased to achieve our objectives of generating positive cashflow for the UK business whilst continuing to deliver significant topline growth. These results, coupled with accelerated growth during the first half of 2017, reinforces our position as the leading lending platform for small businesses globally. We continue to invest substantially in our international markets in the US, Germany and the Netherlands which represent a market opportunity seven times the size of the UK, and expect to enter additional international markets in due course”.
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Funding Circle (www.fundingcircle.com) is the world’s leading lending platform for small businesses, matching investors to businesses who want to grow in the UK, US and Europe. Since launching in 2010, investors at Funding Circle – including 70,000 individuals, local and national government and financial institutions – have now lent £3.3bn to 34,000 businesses globally. Approximately 10% of investor money now comes from Government sources, including the British Business Bank, European Investment Bank, KfW, the German government-owned development bank, and local councils across the UK. The business has raised £250m in equity capital from the same investors that backed Facebook, Twitter and Airbnb.