Funding Circle shares plummet following growth warming
International money lender, Funding Circle, has seen its shares sharply fall after it more than halved its forecast for revenue growth.
The P2P (peer-to-peer) lending platform stated that the current complicated economic environment had played a major factor in the announcement.
Samir Desai CBE, CEO and co-founder, said:“The uncertain economic environment has reduced demand from small businesses and led us to proactively tighten lending criteria. As a result, revenue growth will be impacted. We recognise that this is a change from our previous guidance, but we are taking the prudent course of action for the long-term growth and development of our business. 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.”
Today’s announcement has seen Funding Circle change their growth expectations from more than 405% to less than 20%. Following this, the company’s share price fell more than 25% – and it is still falling.
When Funding Circle launched on the London Stock Exchange (LSE), they initially floated for 440p a share, however they are currently at a price of around 130p a share.