Trading Update

RNS Number : 1874F

Orchard Funding Group PLC

18 March 2022

 

18 March 2022

Orchard Funding Group PLC

("Orchard Funding Group" or the "Company" or the "Group")

Trading Update

Orchard Funding Group, the finance company which specialises in insurance premium finance and the professions funding market, provides the following trading update for the six months ended 31 January 2022 (the "Period").

Trading performance in the Period has exceeded the Board's expectations. Demand for funding has risen on average across most lending lines, with lending performance as follows:

		31 January   2022		31 January   2021		% increase/ (decrease)
		£m		£m
Lending		38.2		30.0		27.0%
Average loan book		33.5		27.6		21.2%

Towards the end of the previous financial year the Group refinanced its borrowings. Toyota Financial Services (UK) PLC provided the Group with a facility of £15.0m and Natwest Bank PLC with £5.0m, making a total of £20.0m to be used for general lending, of which £11.4m was in use at the end of the period.

Since the end of the Period, the Group has issued a five-year bond, further bolstering liquidity. The Board therefore considers it has adequate liquidity for its projected lending in all its markets.

As a result of this loan book momentum in Period, the Board expects revenue for the year to exceed its prior expectations, while Group costs have remained fairly stable and largely unchanged. resulting in an uplift in profitability for the year.

Orchard Funding Group will be announcing its interim results for the Period on 29 March 2022.

For further information, please contact:

Orchard Funding Group PLC                                                       [phone]

Ravi Takhar, Chief Executive Officer

Liberum (Nomad and Broker)     [phone]

Neil Patel

Lauren Kettle

For Investor Relations please go to: www.orchardfundinggroupplc.com

Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014 as amended by The Market Abuse (Amendment) (EU Exit) Regulations 2019) prior to its release as part of this announcement.

 

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