Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Funding Circle shares soar on US exit plans and buyback programme
(Sharecast News) - The share price of small business credit provider Funding Circle soared on Thursday after the company announced a new share repurchase programme to bolster its share price as well as plans to offload its US arm as management attempts to rightsize the business. The stock was up 42.5% at 39.9p by 0933 GMT.
However, the shares are still down 27% over the past year even when including Thursday's gain, as losses continue to rise on the back of its investments into US expansion and its business-focused buy-now-pay-later offering FlexiPay.
The company said it is now choosing to focus on its UK businesses - comprising UK Loans and FlexiPay - and has already received "indications of interest for the US business and will update further in due course".
It is expected that the UK business will be profitable - in terms of pre-tax profit - by the second half of 2024.
Separately, the board said it would buy back £25m worth of shares after judging that the the current trading price "materially undervalues Funding Circle's business". The company said in a statement that a share repurchase "will improve balance sheet efficiency by returning excess capital to shareholders".
Total income over 2023 increased 7% to £162.2m, but adjusted EBITDA dropped to a negative £3.9m, from a profit of £9.5m in 2022, on the back of investments in the US and FlexiPay.
The UK Loans business specifically saw adjusted EBITDA swell to £21.3m from £13.8m, helped by FlexiPay transactions soaring to £234m from £59m previously.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity and Inclusion | Doing Business with Fidelity | Fidelity gender pay report | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Security | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.
