Funding Circle boss bows out as fintech lifts profit forecast
The boss of small business lender Funding Circle has laid out plans for her departure as the fintech lifted its profit forecast for the year ahead.
Lisa Jacobs, who has led the firm since 2022, will step down as chief executive by “no later than September 2027,” the firm said on Tuesday.
The fintech chief said the business was in “the best position it has ever been” and she believed now was “the right time to start the process of handing over the reins”.
Funding Circle chair Ken Stannard said the board was “fully focused on finding the right candidate who will build on our strong platform for growth”.
It came as the fintech’s revenue jumped 50 per cent to £138m after loan originations swelled 43 per cent to just over £1bn.
Total credit extended across its products shot up 52 per cent to £1.7bn, pushing assets under management past the £3.2bn mark. The rapid expansion was fueled by its flagship term loans alongside booming demand for its FlexiPay and credit card offerings, where transaction volumes surged 71 per cent to £640m.
Funding Circle hikes shareholder returns
Meanwhile, operating costs grew at half the rate of revenue, rising 27 per cent to £99m. Marketing costs took up the lionshare at £39.9m, while staff costs were just behind at £39.8m.
Pre-tax profit quadrupled from £6m to £24.1m over the six-month period. The firm said it expects profit to reach over £40m for the year, upgraded from previous expectations of £35m.
Funding Circle announced a fresh £25m buyback, which will take its total capital returned via buybacks to £100m since March 2024.
“The opportunity in front of us remains substantial. Economic growth starts with small businesses,” Jacobs said.
“UK small businesses remain underserved by traditional lenders, and our technology, data capabilities and continued product innovation mean we are well-placed to meet their needs.”