Shares in Orchard Funding Group, the insurance premium finance provider, jumped 25% after it said it expected recent increased lending to lead to full-year earnings beating current forecasts.
The AIM-listed group said revenues have been lifted by increased lending in the insurance premium market, with earnings boosted by its "disciplined approach" to growth despite interest rates remaining elevated.
Earnings are now expected to be 20% above "current market guidance".
CEO Ravi Takhar said the company is working to "strengthen" lending in its core insurance premium finance market as well as lending in adjacent markets, such as professional fee funding and school fee funding (pictured).
"We are optimistic that our ability to lend, develop and operate our own software and our loyal and experienced staff will continue to deliver positive results to the company and all its stakeholders."
Last month the company withdrew its dividend and said the board views the benefits of maintaining the AIM listing are outweighed by various factors, including legal and regulatory requirements and costs; its inability to attract institutional investor interest; and low levels of liquidity.
It said the retained capital "can be used to make, if appropriate, an acceptable tender offer to shareholders in the future and will be for the benefit of the business enabling management the strategic flexibility, when appropriate, to deploy funds to support the lending of the business".