Funding Circle Holdings plc

Simplification and streamlining of UK business and Board Change

Funding Circle Holdings plc (“Funding Circle”) today provides an update on progress towards its priorities of simplification and profitability as set out at full-year results in March.

As part of its ongoing commitment to profitability, Funding Circle has launched a set of cost efficiency actions. This process will result in a simpler, leaner and better positioned UK focused operation. These actions will deliver an annualised run rate cost saving of ~£15 million in 2025 and an expected reduction in the overall number of roles by c.1201. Non-recurring costs to achieve these changes are expected to be approximately £5m, which will be recognised in 2024.

Oliver White, CFO, has informed the Board of his intention to stand down from his role with a transition to begin following publication of first-half results in September. He will leave the Board at the end of 2024. He will be succeeded by Tony Nicol2, currently Director of Finance and Investor Relations and with Funding Circle for six years, previously Group Financial Controller at IG Group.

Lisa Jacobs, Chief Executive Officer commented:

“We are pleased to report continued momentum on the path we set out in March to become a simpler, profitable business. The reduction in roles is not a decision we took lightly, and I would like to thank all the departing team for their hard work and commitment.

I would also like to thank Oliver for his unwavering dedication to Funding Circle - it has been a pleasure to work alongside him. I am delighted to see Tony, who has been with the Group for six years, stepping up into the CFO role. Looking forward, we will continue to execute against our plan to capture growth in a large underserved market as a simpler, profitable UK business.”

Year to date performance is in line with expectations and the Group remains on track to meet full-year guidance3. In the US, discussions regarding a potential transaction are progressing well and an update on the outcome will be provided in due course.

Funding Circle will announce H1 2024 results on 5 September 2024.

 Notes:

1. c.14% versus the December 2023 year end figure, excluding US roles.
2. Tony Nicol joined Funding Circle from IG Group in 2018. At IG Group, as Group Financial Controller, Tony was responsible for all internal and external reporting. Earlier in his career, Tony worked at PWC from 1998 to 2015. Tony was appointed director of SME Credit Realisation Fund Limited on 19 October 2022. There is no additional information which is required to be disclosed under paragraph 9.6.13R of the Listing Rules of the Financial Conduct Authority.
3. Guidance for 2024 as set out at full-year 2023 results on 7 March 2024 given below:

Contacts:

Funding Circle Investor Relations

Tony Nicol

Joint corporate brokers

Investec: Bruce Garrow / Kamalini Hull ( 0)

Deutsche Numis: Stephen Westgate / Jamie Loughborough ( 0)

Funding Circle Media Relations

Angeli Everitt ( 5)

Headland Consultancy

Stephen Malthouse / Jack Gault ( 2)

About Funding Circle:

Funding Circle (LSE: FCH) is the UK’s leading SME lending platform. Its mission is to build the place where small businesses get the funding they need to win.

Funding Circle enables small businesses to access funding – offering an unrivalled customer experience powered by data and technology.

For institutional investors, Funding Circle provides access to an alternative asset class in an underserved market, with robust and attractive returns.

Globally, Funding Circle has extended more than £16bn in credit to c.150,000 businesses.