Losses at SME lender, Funding Circle, have increased by 14% to £31m in the first half of the year. However, revenues at the company have climbed by 29% to reach £81m.
Last month, Funding Circle halved forecasts for revenue growth, stating that the current “uncertain economic environment” had damaged demand for loans across the industry.
The company listed on the London Stock Exchange (LSE) last year when shares were selling for 440p each. However, since then the price for the firm has falen to just over 100p.
CEO and co-founder, Samir Desai, commented: “During the first half of the year, we grew revenue by 29% and we now have £3.54bn of loans under management. As previously announced, we expect to grow revenues by c.20% this year due to the uncertain economic environment and proactive actions we have taken. We continue to benefit from strong repeat dynamics from borrowers, with 46% of Group revenue coming from existing customers, and attracting new investors to the platform.
“We remain confident in our aim to become the world’s largest small business loans provider, helping millions of businesses to create jobs and support economic growth. Small businesses remain underserved. Our platform allows them to access the finance they need in a fast and affordable way, whilst at the same time, opening up a stable and attractive asset class to a broad range of investors.”