Funding Circle Holdings PLC (LSE:FCH) received renewed backing from Cavendish, which called the share-price retreat a buying opportunity despite uncertainty over the chief executive’s planned departure.
On succession, Lisa Jacobs plans to leave by September 2027, although the analysts expect the extended transition and management depth to help limit execution risk.
Supporting the broker’s case, first-half pre-tax profit rose 302% to £24.1 million, with revenue up 50% to £138.2 million and operating leverage improving profitability.
Following those results, management raised financial year 2026 guidance to revenue above £255 million and pre-tax profit above £40 million.
In response, Cavendish lifted its 2026 pre-tax profit forecast to £41.1 million from £40.8 million and its 2027 estimate to £55.9 million from £55 million.
Alongside Term Loans growth, FlexiPay and Credit Card revenue climbed 83% to £30 million, while higher expected credit loss charges primarily reflected portfolio expansion.
On shareholder returns, the lender announced another buyback of up to £25 million, above the broker’s £20 million forecast, after ending June with £136 million in unrestricted cash.
Calling its forecasts conservative, the broker sees scope for further upgrades if October’s Budget has a neutral or positive impact on business confidence.
In afternoon trading, the shares stood at 193.20p, down 3%.
