StockMarketWire.com - Lending company Funding Circle reported wider annual losses Thursday as costs related to its IPO offset a sharp jump in revenues.

For the 12 months ending 31 December, the company reported a loss of £50.7m from a loss of £36.3m a year earlier, while revenues rose 55% to £141.9m exceeding guidance for a 50% rise.

Loans under management grew 55% to £3.15bn as originations grew 40% to £1.74bn for the year.

In 2019, the company expects to report revenues above £200m with transaction yields remaining at 2018 exit levels.

Adjusted earnings (EBITDA) losses would reduce from 2018 as a result of 'central costs falling to 20%+ of revenue, including investment in product development and a full year of plc related expenditure,' the company said.

'2018 was another record-breaking year for Funding Circle. The business delivered against the guidance set out at the time of our IPO and it is especially pleasing to report revenue growth of 55%1 with revenue of £141.9 million and a positive segment adjusted EBITDA of £7 million,' said Samir Desai CBE, CEO and co-founder.

'Our focus has always been on delivering an exceptional customer experience to both borrowers and investors, leading to strong and consistent repeat behaviour, and I am proud that, in 2018, 43% of our Group revenue came from existing customers.'

'As we look ahead to the rest of 2019, we remain focused on continuing our strategy of investing for growth and building on our number one market positions across the UK, US, Germany and the Netherlands.'

At 8:57am: [LON:FCH] Funding Circle Holdings Plc Ord 0.1p Wi share price was +6.13p at 357.13p



Story provided by StockMarketWire.com