Full Year 2024 Funding Circle Holdings PLC Earnings Call Transcript
Key Points
- Funding Circle Holdings PLC (LSE:FCH) achieved a 23% increase in revenue, reaching 160 million pounds.
- The company reported a group profit of 3.4 million pounds, surpassing market expectations.
- Credit extended grew by 47% to 1.9 billion pounds, with significant growth in both core loans and new products.
- The company successfully restructured its UK business, resulting in an annualized benefit of 15 million pounds in cost savings.
- Funding Circle Holdings PLC (LSE:FCH) launched two share buyback programs, buying back over 11% of its share capital by the end of February 2025.
- The company is facing ongoing litigation related to the sale of loans, which could have potential implications if not resolved favorably.
- Despite strong performance, the macroeconomic environment remains challenging, with high business insolvencies and low consumer confidence.
- The FlexiPay product, while showing growth, still incurs upfront costs and is not yet fully profitable.
- The US business was sold due to trading losses, indicating challenges in international markets.
- There is a need for additional capital to support the growth of FlexiPay, which could impact cash reserves.
Good morning everyone. Welcome to the funding circle full year 2024 results presentation.
I wanted to start by welcoming Tony Nicol, our new CFA. It's great to have him enroll and you'll be hearing from him later today after I've run through the results, business, and strategic highlights.
2024 has been a successful year of change and progress for Funding Circle.
A year ago, I laid out our plan to be a simpler, leaner, profitable business. And in 2024, we have delivered that.
We sold the US business for a gain on sale of 10 million pounds. We're now fully focused on the UK markets where we enjoy strong brand recognition, powerful credit, data, and technology advantages, and deliver a great customer experience.
We restructured the UK business, delivering an annualized benefit of 15 million pounds in cost savings, about half of which we saw coming through in 2024, and the remainder we'll see in 2025.
Alongside this we've continued to pay sustained growth and improved profitability.
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