Funding Circle, a lender for small businesses, has surpassed its forecasts for revenue growth and loans under management. The announcement comes three months after a disappointing debut of the company on the London Stock Exchange.
The firm hit a revenue growth of 55 percent in the fourth quarter of the previous year. It exceeded the 50 percent guidance which was estimated at the time of the initial public offering (IPO) of the company.
Loans under management surpassed the IPO expectations and reached £3.1 billion. The said amount is an increase of 55 percent in the same period the previous year.
The fourth quarter saw record loan originations amounting to £683 million, an increase of 31 percent from £522 million in the same period in 2017, bringing the total originations for the year to £2.3 billion.
The shares in the firm dropped by more than 24 percent below its initial price target when it floated in October last year, plunging by as low as 334.5p down from its listing price of 440p. This morning, the shares are trading at 325p.
Last November, the British Business Bank announced that it would commit to lending up to £150 million to small businesses in the United Kingdom through Funding Circle, and;last month, Waterfall Asset management agreed to invest in £1 billion of loans through the UK platform of the fintech giant over a period of two years.
Samir Desai, the Chief executive and co-founder of the company, stated: “Funding Circle delivered a strong end to 2018 which resulted in exceeding our revenue and loans under management guidance for the year.”
He added: “We were pleased to announce a number of new institutional investor transactions in the fourth quarter, which is further validation of the attractive risk-adjusted returns generated on the Funding Circle platform. We enter 2019 with continuing confidence and remain focused on delivering our growth strategy set out at IPO.”