Half Year 2024 Funding Circle Holdings PLC Earnings Call Transcript
Key Points
- Funding Circle Holdings PLC (LSE:FCH) achieved profitability earlier than expected, with a profit of GBP0.5 million in the first half of 2024.
- The company saw strong revenue growth, with group revenue increasing by over 30% year-on-year.
- FlexiPay transactions grew significantly, with a 57% increase since H2 2023, crossing GBP0.5 billion in transactions.
- The company successfully restructured to deliver GBP15 million in annualized cost savings by 2025.
- Funding Circle Holdings PLC (LSE:FCH) has a robust balance sheet with unrestricted cash of GBP164 million.
- The US business was sold, resulting in a loss of GBP10.1 million for the first half of 2024.
- Exceptional costs of GBP2.6 million were incurred due to restructuring, primarily for redundancy payments.
- FlexiPay remains cash consumptive and is expected to continue being so into 2025.
- The 2022 loan cohort saw a reduction in expected returns due to ongoing economic deterioration.
- There is a partial offset in cost savings due to central group costs previously allocated to the US needing to be absorbed by the UK business.
Good morning, and welcome to the Funding Circle Holdings half year 2024 results presentation. I am pleased with our performance in the first half. We're simpler, leaner, profitable business. We've seen strong growth in the first half, and we remain on track to deliver against further growth and profitability.
Today, I'll run through an overview of who we are, as a summary of our H1 performance and business updates before passing to Oliver for the financial review. With the UK's leading SME finance platform. To date in the UK, we have extended over GBP13.5 billion in credit to over 100,000 businesses. Our mission is to build a place where SMEs get the funding they need to win.
When businesses like 15 grams coffee featured on our front page, get finance. It has a big impact on the economy and communities through the UK. In 2023, lending through funding cycles supported 95,000 jobs. We offer a quick and slick way to get finance to enable SMEs to borrow for the long term with a range of time lines. Pay later, we have a line
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