olivLaw · European equity research
Funding Circle Holdings plc FCH.L
United Kingdom · London Stock Exchange · ISIN GB00BG0TPX62 · Vertical: Listed companies from United Kingdom
Funding Circle Holdings plc, through its Funding Circle platform, provides finance to small businesses in the United Kingdom with borrow, pay later and spend products. In 2025 the company reported revenue of £204.3m and profit before tax of £20.3m, while its focus shifted to a multi-product UK model.
At the close of 05 Nov 2026, Funding Circle Holdings plc (FCH.L) stock was 2.01 GBP (−0.25% on the day), with market capitalisation 633.3 m GBP, P/E 14.4 on diluted EPS of 0.14 GBP over the last 12 months, beta 1.05, 52-week range 1.15–2.46 GBP.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 49.0
- neutral
- Bollinger (20, 2)
- 1.90 – 2.16
- in the lower half of the band · %B 0.42 · band width 12.8%
- SMA 50 / 200
- 2.00 / 1.72
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 0.02 / 0.03
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | +7.5% | −0.6% | +8.1 pp | — |
| 3 months | −14.1% | −4.2% | −9.9 pp | — |
| 6 months | +45.9% | +4.3% | +41.5 pp | — |
| Year to date | +59.0% | +7.5% | +51.5 pp | — |
| 1 year | +53.0% | +9.9% | +43.0 pp | +6.7% |
| 3 years | +390.2% | +49.8% | +340.4 pp | +24.8% |
| 5 years | +27.2% | +42.8% | −15.6 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 50 percentile of its own 2-quarter history (min 9.0, median 33.6, max 58.3; quarters with earnings only).
Fiscal years
| Fiscal year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | unavailable | unavailable | unavailable |
| Revenue YoY | unavailable | unavailable | unavailable |
| Net income | -38.3 m | 8.6 m | 46.0 m |
| Net income YoY | unavailable | unavailable | +434.9% |
| Diluted EPS | unavailable | 0.02 | 0.14 |
| Diluted EPS YoY | unavailable | unavailable | +508.7% |
| net % | unavailable | unavailable | unavailable |
| Free cash flow | -26.3 m | -70.3 m | -34.4 m |
Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 152.4 m GBP
- Financial debt
- 267.3 m GBP
- Net debt
- 114.9 m GBP
- Equity
- 228.4 m GBP
- Total assets
- 535.9 m GBP
- Debt / equity
- 1.17x
- Current ratio
- 1.55x
- ROE
- 20.7%
- ROA
- 10.3%
- FCF margin
- unavailable
Financial statements (source on every figure)
Revenue and net income (GBP)
Income statement · GBP
Balance sheet · GBP
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Cash | 221.4 m | 187.6 m | 152.4 m | esef· 21 Apr 2026verified |
| Receivables | 20.4 m | 20.8 m | 20.5 m | esef· 21 Apr 2026verified |
| Current assets | 311.5 m | 307.4 m | 467.5 m | esef· 21 Apr 2026verified |
| Property, plant & equipment, net | 5.0 m | 9.6 m | — | esef· 15 Apr 2025verified |
| Intangibles (excl. goodwill) | 23.0 m | 21.2 m | 21.3 m | esef· 21 Apr 2026verified |
| Total assets | 373.2 m | 358.0 m | 535.9 m | esef· 21 Apr 2026verified |
| Accounts payable | 54.3 m | 27.8 m | 30.8 m | esef· 21 Apr 2026verified |
| Short-term debt | 54.7 m | 101.9 m | 267.3 m | esef· 21 Apr 2026verified |
| Long-term debt | 2.2 m | 0 | — | esef· 15 Apr 2025verified |
| Current liabilities | 117.7 m | 135.1 m | 302.4 m | esef· 21 Apr 2026verified |
| Total liabilities | 126.4 m | 141.5 m | 307.5 m | esef· 21 Apr 2026verified |
| Equity | 246.8 m | 216.5 m | 228.4 m | esef· 21 Apr 2026verified |
| Shares outstanding at year end | — | 344.0 m | 315.1 m | esef· 21 Apr 2026derived |
Cash flow · GBP
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Operating cash flow | -25.6 m | -67.4 m | -33.8 m | esef· 21 Apr 2026verified |
| Capex | 700.0 k | 2.9 m | 600.0 k | esef· 21 Apr 2026verified |
| Free cash flow | -26.3 m ≈ | -70.3 m ≈ | -34.4 m ≈ | esef· 21 Apr 2026derived |
| Investing cash flow | 66.4 m | 23.3 m | -126.2 m | esef· 21 Apr 2026verified |
| Financing cash flow | 3.7 m | 10.2 m | 124.7 m | esef· 21 Apr 2026verified |
| Share repurchases | 1.8 m | 0 | — | esef· 15 Apr 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- indicators available: 5 of at least 6
- score weight coverage: 35.4% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 633.3 m GBP
Key indicators
Coverage and freshness
Score by group
35% · Insufficient data
Estimated value range
unavailable — no valuation assumptions for the reporting currency
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
Assumptions (illustrative, editorial)
- Risk-free rate
- 6.5%
- Equity risk premium
- 6.0%
- Beta (default)
- 1.00
- Cost of equity
- 12.5%
- Terminal growth
- 3.0%
Factor scorecard
Insufficient data
Minimum-evidence gate: indicators available: 5 of at least 6; score weight coverage: 35.4% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | unavailable | unavailable | — |
| FCF conversion · Quality | -74.8% | 0 (on a fixed band) | 18% |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 1.5x | 62 (on a fixed band) | 12% |
| P/E (TTM) · Valuation | 14.4x | 58 (vs peers) | 29% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | -5.4% | 0 (on a fixed band) | 24% |
| Shareholder yield (distributions) · Returns | 0.0% | 0 (on a fixed band) | 18% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial62/100 · 1/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality· partial0/100 · 1/3 factors with a value
- Returns· partial0/100 · 1/2 factors with a value
- Valuation32/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
FUNDING CIRCLE HOLDINGS PLC (FCH.L). Latest full fiscal year: 2025; data up to 2025-12-31.
Figures computed from the financial statements: ROE 20.7%.
The estimated value range is 1.66–3.00 GBP per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 2.15 GBP, the price of 2.01 GBP leaves a potential of 6.8% (value / price − 1) and a margin of safety of 6.4% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (indicators available: 5 of at least 6; score weight coverage: 35.4% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
No signal among the computed factors. That is not an absence of risk: factors without data were not assessed, and business risks (margins, inventory, demand) are in the source-based analysis.
What contradicts it
- FCF conversion: -74.8%
- FCF yield: -5.4%
- Shareholder yield (distributions): 0.0%
Not assessed (insufficient data or a ratio without meaning): ROIC, Net margin, Revenue CAGR 3Y, EPS CAGR 3Y, Net debt / EBITDA, Interest coverage, EV/EBITDA, Payout ratio (FCF).
Versus the vertical median
Listed companies from United Kingdom · same country · compared with 40 companies
Multiples and returns vs the median
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BATS.LBritish American Tobacco P.L.C. | 104.3 bn | 13.5 | 16.5% | 30.3% | −1.0% | +7% / +88% |
| ABF.LAssociated British Foods PLC | 14.7 bn | 14.3 | 9.2% | 5.3% | −3.1% | −5% / −15% |
| 0EV1.LCarnival PLC | 5.5 bn | 4.1 | 46.7% | 13.4% | +6.4% | unavailable / unavailable |
| BAB.LBabcock International Group PLC | 5.1 bn | 24.7 | 34.7% | 4.1% | +7.2% | −10% / +158% |
| AUTO.LAutotrader Group PLC | 4.8 bn | 16.4 | 60.2% | 47.1% | +3.9% | −13% / −23% |
| BBY.LBalfour Beatty PLC | 4.2 bn | 16.3 | 23.2% | 2.8% | +15.2% | +20% / +160% |
| ABDN.LAberdeen Group PLC | 4.1 bn | 10.8 | 8.0% | 28.9% | −2.1% | +11% / +41% |
| BKG.LThe Berkeley Group Holdings PLC | 3.6 bn | 11.3 | 8.8% | 13.4% | −4.2% | −0% / −22% |
| BME.LB&M European Value Retail PLC | 2.9 bn | 17.4 | 21.2% | 2.8% | +3.7% | +68% / −51% |
| AJB.LAj Bell PLC | 2.4 bn | 22.8 | 49.9% | 33.1% | +18.0% | +8% / +128% |
| ASHM.LAshmore Group PLC | 1.4 bn | 13.9 | 13.1% | 71.6% | −0.1% | +28% / +18% |
| BCG.LBaltic Classifieds Group PLC | 1.2 bn | 23.2 | 15.8% | 57.6% | +6.9% | −99% / −99% |
| APN.LApplied Nutrition PLC | 763.6 m | 36.2 | 41.2% | 19.7% | +24.2% | +71% / unavailable |
| BAG.LA.G. Barr P.L.C. | 671.9 m | 14.4 | 14.4% | 10.8% | +4.0% | −7% / +26% |
| ASC.LAsos PLC | 494.5 m | — | -81.3% | -12.0% | −14.7% | +71% / +8% |
| ALFA.LAlfa Financial Software Holdings PLC | 486.8 m | 16.3 | 61.5% | 23.8% | +15.3% | −28% / +10% |
| AML.LAston Martin Lagonda Global Holdings PLC | 344.3 m | — | -93.4% | -39.2% | −20.6% | −45% / −85% |
| APTD.LAptitude Software Group PLC | 111.3 m | 28.5 | 7.2% | 6.2% | −7.3% | −30% / −23% |
| BMS.LBraemar PLC | 78.3 m | 39.2 | 2.7% | 1.7% | −4.4% | +13% / −11% |
| AMGO.LAmigo Holdings PLC | 9.9 m | — | — | — | −81.9% | +325% / +844% |
| ASBE.LAssociated British Engineering PLC | 605.3 k | — | -19.1% | — | unavailable | unavailable / unavailable |
| AMIF.LAmicorp Fs (uk) PLC | 221.6 k | 0.1 | 27.5% | 9.1% | +8.1% | unavailable / unavailable |
| AAF.LAirtel Africa PLC | — | — | 24.1% | 10.6% | +29.5% | −7% / +164% |
| AAL.LAnglo American PLC | — | — | -19.3% | -20.2% | +4.5% | +30% / +76% |
| ACG.LAcg Metals Limited | — | — | -80.3% | -32.0% | +134.8% | +60% / +63% |
1- and 3-year price returns: for FCH.L from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Scenarios are not available. input data missing
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Funding Circle Holdings plc, through its Funding Circle platform, provides finance to small businesses in the United Kingdom with borrow, pay later and spend products. In 2025 the company reported revenue of £204.3m and profit before tax of £20.3m, while its focus shifted to a multi-product UK model.
SWOT
Strengths
- The proprietary data and AI platform, trained on a long history of loans, is a structural advantage that management has declared.
- The capital-light model allows growth without tying up a large balance sheet, which supports profitability.
- Management has a record of cost reduction and of simplifying the business towards the UK market.
Weaknesses
- Profit before tax is still small relative to the volume of credit extended, leaving little room for error.
- Concentration on one market, the United Kingdom, exposes the company to local economic conditions.
- The board does not have a formal majority of independent directors, which the company acknowledged as a departure from the governance code.
Opportunities
- Extending pay later and spend products to existing customers could grow revenue without acquiring new customers.
- Partnerships with institutional investors for new products could expand funded volume without using own capital.
- The underserved UK SME market remains large, and new products may attract segments that were not previously customers.
Threats
- A weaker economic cycle could increase credit losses on SME loans, directly affecting profitability.
- Regulation of lending and AI use could impose additional compliance costs.
- Competition from banks and fintechs could pressure margins on loan products.
Risks
- Credit riskhigh
The quality of the loan book depends on the economic conditions of SMEs; a deterioration could reduce profitability.
- Cyber riskmedium
The digital platform and customer data could be targeted by attacks, with operational and reputational costs.
- Generative AI riskmedium
Using generative AI in credit decisions could produce errors if human oversight does not work correctly.
- Funding riskmedium
Dependence on institutional funders and guarantee arrangements could be affected by change of control or market conditions.
- Governance risklow
The board does not fully meet the independence requirement, which could affect investor perception of oversight.
Investment thesis
What would need to be true (bull case)
- If profitability keeps rising with the new products, the company could demonstrate that the multi-product model works.
- The data platform and risk models could form an advantage that is hard to copy, supporting the position in the SME market.
- If institutional funding for the new products consolidates, the company could grow volume without exposing its balance sheet.
What would break the thesis
- Profit that is still modest relative to loan volume could leave the company vulnerable to a deterioration in the economic cycle.
- Dependence on one market and on United Kingdom conditions could limit growth if the economy weakens.
- Risks linked to AI and regulation could create additional costs that reduce margins.
What to watch
- Revenue and profit trajectory against the medium-term growth target2026
- Credit quality and loss levels on SME loans in the new productsQ1 2027
- Voting outcome and buyback programme at the annual general meeting2026 AGM
- Status of the agreement with institutional funders for the short-term loan productnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Funding Circle Holdings plc describes its mission as building the place where small businesses get the funding they need to win. The company was founded in 2010 and says it supports SMEs through its proprietary data and technology, with a focus on credit and payment products. According to the 2025 annual report, the group has a simplified structure centred on the United Kingdom 1.
The business model is described as capital-light: the company connects borrowers with institutional funders and platform investors instead of funding all loans from its own balance sheet. The report shows credit extended of £2,453m in 2025, and the active customer base has grown steadily over the last three years 1.
In 2025 the company launched a short-term loan product and extended its portfolio towards FlexiPay and cards, so that customers interact with the platform more often. Management said interactions reached one transaction every 38 seconds, a metric it uses to show the depth of customer relationships 1.
Segments
Term Loans
Traditional longer-term loans remain the core of the business and are described as a consistent cash generator that supports the share buyback programmes 1.
FlexiPay and cards
The pay later and spend products are the new growth lines, meant to increase the frequency of interactions, although the report does not separate them as revenue in the figures shown here 1.
Short-term loans
The product launched in 2025 was initially funded from the group's balance sheet, and management said the data gathered helped attract a larger institutional funder in early 2026 1.
Market context
The company operates in the UK SME financing market, which the report describes as large and underserved: there are 5.7m SMEs in the country and SME debt outstanding exceeds £80bn 1.
The report describes the macroeconomic environment as uncertain but states that profitable growth and disciplined credit risk control could support results if conditions remain manageable. The company's claimed contribution to GDP and tax receipts is an argument management uses in its communication 1.
Trends
- Shift to a multi-product modeltailwind
Management links growth to the move from a single-product lending model to a borrow, pay later, spend offering, which could deepen customer relationships.
- Generative AImixed
The company invests in AI for risk assessment and efficiency, but the report stresses that the risks of this technology remain a priority for the board.
- Macroeconomic uncertaintyheadwind
The report says the economic environment remained uncertain in 2025, which could affect loan quality if pressure on SMEs increases.
- Share buybacksmixed
Buyback programmes return capital to shareholders, supporting part of the value narrative but reducing financial flexibility for investment.
Competitive position
The report does not explicitly list competitors, but it describes competition coming from traditional banks and digital SME finance providers, which the company says it competes with through data and speed.
The company's stated advantage is its proprietary data platform and risk models trained on a long history, which management considers a data moat that is hard to replicate quickly.
- UK traditional banks
The report says traditional banks have historically underserved SMEs, and the company positions itself against them as a source of competition.
- Other digital SME lenders
Fintech companies offering fast loans to SMEs compete for the same customers, although the report does not name them.
- Business card and pay later providers
The spend and pay later products compete with business card issuers and deferred payment solutions.
- Institutional funders
Institutional investors are both funders and, at times, competitors for capital on the platform.
News & filings
In the press
- Funding Circle H1 Earnings Call HighlightsYahoo Finance — News · 08 Sept 2026 · EN
Annual reports (ESEF)
- Annual report 202521 Apr 2026
- Annual report 202415 Apr 2025
Sources
- [1] Annual report, fiscal year ended 2025-12-31 (ESEF) · SEC / Funding Circle Holdings plc · 31 Dec 2025
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.