- Specialist insurance financing group Orchard Funding said it expected its annual earnings to be higher than market expectations, as lower costs offset a drop in lending volumes.

Lending volumes were expected to miss market expectations due to the Covid-19 crisis, which, while not materially impacting its existing book, had hurt demand for new loans.

Orchard Funding said it continued to receive revenue indirectly linked to lending, such as, for example, from the use of its software system.

'We are expecting, therefore, that despite lending falling our revenue will come close to current market expectations,' it added.

'Our costs for the full year are now expected to be lower as certain costs associated with the banking licence application have been deferred until the financial year ended 31 July 2021.'

'Accordingly, whilst additional provision has been made for impairments as a result of Covid-19, we now expect that earnings for the full year will be higher than current market expectations.'

'Orchard is a resilient and cash generative business with a robust balance sheet.'

'We are therefore responding to the impact of Covid-19 from a position of strength.'

At 8:44am: [LON:ORCH] Orchard Funding Group Plc share price was 0p at 76.5p

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