UK-based peer-to-peer lending platform Funding Circle has reported a profit before taxation of £3.4m ($4.38m) for 2024, excluding exceptional items.
This marks a turnaround from the previous year’s loss of £9.9m.
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Last year, credit extended soared 47% year-on-year to £1.899bn.
Balances under management slightly decreased to £2.83bn from £2.92bn in the previous year.
The company’s revenue grew to £160.1m, compared to £130.1m a year ago. This growth was driven by strong performances in both term loans and FlexiPay offerings, the company said.
Term loans, in particular, saw an increase in profitability, with profit before tax (PBT) pre-exceptionals reaching £19.0m, up from £6.5m in 2023.
Exceptional items of £2.6m, related to business simplification announced in May 2024, resulted in a profit before tax of £0.8m, compared to a £9.9m loss in 2023, the company said in its press statement.
Despite the share buyback programmes, unrestricted cash remained at £150.5m, compared to £169.6m in 2023.
As of 31 December 2024, £33.7m worth of shares had been purchased as part of the ongoing buyback initiative, the company said.
Funding Circle CEO Lisa Jacobs said: “2024 was a transformative year for Funding Circle. We successfully executed our plan to build a simpler, leaner, and more profitable business while making strong progress in expanding our term loans and FlexiPay offerings.
“Strong SME demand drove growth in our term loans business, allowing us to support more borrowers than ever and increase originations by 33%. At the same time, FlexiPay, our shorter-term lending product, continues to see rapid adoption.
“We remain on track to achieve our medium-term target of over £200m in revenue, with PBT margins exceeding 15%.”
Looking ahead, the firm said it is on track to meet its medium-term guidance set for 2026, which includes a 15%-20% revenue compound annual growth rate (CAGR) from FY 2023 and PBT margins of over 15%.
These targets equate to a revenue of at least £200m and a PBT of at least £30m.
The company also announced that Geeta Gopalan, chair of the audit and risk committee and senior independent director, along with non-executive director Neil Rimer, will be stepping down later in the year.
In December 2024, Funding Circle named Ken Stannard as non-executive director and chair designate.
