Orchard Funding Group (LSE:ORCH) Operating Income: £4.13 Mil (TTM As of Jul. 2025)

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LSE:ORCH Orchard Funding Group PLC LSE:ORCH
56 GF Score
Price £0.63
GF Value £0.74
Valuation Modestly Undervalued
! 11 Warning Signs
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What is Orchard Funding Group Operating Income?

Orchard Funding Group LSE:ORCH 56 Operating Income is £4.13 Mil as of Jul. 2025. GuruFocus rates LSE:ORCH with a GF Score™ of 56/100 and a GF Value™ of £0.74 (Modestly Undervalued). The stock has 11 warning signs investors should review.

Orchard Funding Group's Operating Income for the six months ended in Jul. 2025 was £1.96 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jul. 2025 was £4.13 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Orchard Funding Group's Operating Income for the six months ended in Jul. 2025 was £1.96 Mil. Orchard Funding Group's Revenue for the six months ended in Jul. 2025 was £5.18 Mil. Therefore, Orchard Funding Group's Operating Margin % for the quarter that ended in Jul. 2025 was 37.76%.

Warning Sign:

Orchard Funding Group PLC operating margin has been in a 5-year decline. The average rate of decline per year is -2.3%.

Orchard Funding Group's 5-Year average Growth Rate for Operating Margin % was -2.30% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Orchard Funding Group's annualized ROC % for the quarter that ended in Jul. 2025 was 5.34%. Orchard Funding Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jul. 2025 was 824.61%.

Orchard Funding Group  (LSE:ORCH) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Orchard Funding Group's annualized ROC % for the quarter that ended in Jul. 2025 is calculated as:

ROC % (Q: Jul. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jan. 2025 ) + Invested Capital (Q: Jul. 2025 ))/ count )
=3.914 * ( 1 - 22.31% )/( (60.107 + 53.73)/ 2 )
=3.0407866/56.9185
=5.34 %

where

Invested Capital(Q: Jan. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=70.36 - 9.345 - ( 0.908 - max(0, 39.282 - 61.186+0.908))
=60.107

Invested Capital(Q: Jul. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=67.551 - 13.182 - ( 0.639 - max(0, 35.943 - 57.598+0.639))
=53.73

Note: The Operating Income data used here is two times the semi-annual (Jul. 2025) data.

2. Joel Greenblatt's definition of Return on Capital:

Orchard Funding Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jul. 2025 is calculated as:

ROC (Joel Greenblatt) %(Q: Jul. 2025 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jan. 2025  Q: Jul. 2025
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=3.686/( ( (0.445 + max(-9.345, 0)) + (0.449 + max(-13.182, 0)) )/ 2 )
=3.686/( ( 0.445 + 0.449 )/ 2 )
=3.686/0.447
=824.61 %

where Working Capital is:

Working Capital(Q: Jan. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 0 + 0) - (9.345 + 0 + -7.105427357601E-15)
=-9.345

Working Capital(Q: Jul. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 0 + -7.105427357601E-15) - (13.182 + 0 + 0)
=-13.182

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Jul. 2025) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Orchard Funding Group's Operating Margin % for the quarter that ended in Jul. 2025 is calculated as:

Operating Margin %=Operating Income (Q: Jul. 2025 )/Revenue (Q: Jul. 2025 )
=1.957/5.183
=37.76 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Orchard Funding Group Operating Income Related Terms

Orchard Funding Group Operating Income Historical Data

* Premium members only.

The historical data trend for Orchard Funding Group's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Orchard Funding Group Operating Income Chart

Orchard Funding Group Annual Data
Trend Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.77 0.92 1.94 2.30 3.27

Orchard Funding Group Semi-Annual Data
Jan16 Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22 Jul22 Jan23 Jul23 Jan24 Jul24 Jan25 Jul25
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.97 1.56 1.71 2.17 1.96
LSE:ORCH
56GF Score
Orchard Funding Group PLC LSE:ORCH
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Orchard Funding Group Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Jul. 2025 adds up the semi-annually data reported by the company within the most recent 12 months, which was £4.13 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of £4.13 Mil mean?
Orchard Funding Group (LSE:ORCH) has a Operating Income of £4.13 Mil as of Jul. 2025. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Orchard Funding Group and its competitors.
Is Orchard Funding Group's Operating Income too high?
Orchard Funding Group's current Operating Income is £4.13 Mil. Overall, Orchard Funding Group has a GF Score™ of 56/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Orchard Funding Group's Operating Income compare to V and MA?
Orchard Funding Group's Operating Income of £4.13 Mil can be compared against companies in the Credit Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Credit Services company?
A good Operating Income depends on the Credit Services industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Orchard Funding Group and its competitors. Orchard Funding Group's current Operating Income is £4.13 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Orchard Funding Group stock overvalued right now?
Based on GuruFocus' analysis, Orchard Funding Group (LSE:ORCH) is currently considered Modestly Undervalued. The stock's GF Value™ is £0.74, compared to a current price of £0.63 — trading 15.5% below its estimated fair value. The current Operating Income is £4.13 Mil. Orchard Funding Group's overall GF Score™ is 56/100 with 11 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Orchard Funding Group (LSE:ORCH), the current Operating Income is £4.13 Mil as of Jul. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Orchard Funding Group (LSE:ORCH) Overvalued in 2026?

Based on GuruFocus' analysis, Orchard Funding Group stock appears to be undervalued. The current stock price of £0.63 is trading 15.5% below its estimated GF Value™ of £0.74. GuruFocus considers Orchard Funding Group to be Modestly Undervalued.

Key valuation signals for LSE:ORCH:

  • Operating Income: £4.13 Mil
  • GF Value™: £0.74 vs. price of £0.63 (15.5% below fair value)
  • GF Score™: 56/100 with 11 warning signs

No single metric tells the full story. See the LSE:ORCH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Orchard Funding Group Business Description

Address 222 Armstrong Road, Luton, Bedfordshire, GBR, LU2 0FY
Orchard Funding Group PLC is a finance company that specializes in insurance premium finance and the professional fee funding market. The company mainly provides funding and funding support systems to clients of insurance brokers and professional firms. It aims to further increase the capital base to enable it to support higher levels of borrowing. It operates in two segments: lending for Toyota products, and other lending. The company operates within the United Kingdom.
56GF Score

Get the complete analysis for LSE:ORCH

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

£0.63
Price
£0.74
GF Value