Funding Circle boss bows out as fintech lifts profit forecast

Funding Circle's CEO, Lisa Jacobs, announced her departure as the fintech company raised its profit forecast for the year. Jacobs has been leading the firm since 2022 and plans to step down by "no later than September 2027." She believes the business is "in the best position it has ever been" and considers it "the right time to start the process of handing over the reins."

Chairman Ken Stannard stated that the board is "fully focused on finding the right candidate who will build on our strong platform for growth." Revenue for the fintech surged 50% to £138 million, driven by a 43% increase in loan originations to nearly £1 billion. Total credit extended across its products rose 52% to £1.7 billion, surpassing the £3.2 billion mark for assets under management.

The rapid expansion was fueled by Funding Circle's flagship term loans and growing demand for its FlexiPay and credit card offerings, with transaction volumes increasing 71% to £640 million. Operating costs grew at half the rate of revenue, up 27% to £99 million. Marketing costs accounted for £39.9 million, while staff costs were just behind at £39.8 million.

Pre-tax profit quadrupled from £6 million to £24.1 million over the six-month period, with the firm now projecting profit to reach over £40 million for the year, up from previous expectations of £35 million.

Funding Circle announced a £25 million buyback, bringing its total capital returned via buybacks to £100 million since March 2024. CEO Jacobs emphasized that "the opportunity in front of us remains substantial" and highlighted that "UK small businesses remain underserved by traditional lenders." She stated that the company's technology, data capabilities, and product innovation position it well to meet the needs of small businesses in the UK.