LONDON - Orchard Funding Group PLC, a specialist in insurance premium finance and professions funding, has reported a mixed set of full-year results for the period ending July 31, 2024. The company saw an increase in lending volumes, loan book size, and total income, but also experienced a decline in profit after tax and earnings per share.
Lending volume rose by 14.85% to £114.70 million in 2024, up from £99.87 million the previous year. The loan book, adjusted for expected credit loss (ECL) provisions, increased by 13.54% to £66.98 million. Gross total income for the group also saw an uptick, growing by 22.65% to £9.64 million for the 12 months to July 31, 2024.
Despite these positive growth figures, Orchard Funding Group's profit after tax fell by 8.19% to £1.57 million, down from £1.71 million reported on July 31, 2023. Earnings per share similarly decreased by 7.91% to 7.39p. The company also reported an increase in operating costs, excluding impairments, which rose by 9.09% to £3.60 million, and a significant rise in expected credit losses and other impairments from £0.14 million in 2023 to £1.17 million in 2024.
The directors of Orchard Funding Group, as previously announced on May 17, 2024, do not intend to propose a dividend. However, the company has increased its borrowing availability by £3.00 million over the last year.
CEO Ravi Takhar commented on the resilience of the business amidst various impacts over the year, expressing confidence and optimism for the future as the company enters its 10th year as a listed entity.
The results are detailed in the Group's strategic report, which includes further insights into the company's performance over the past financial year. This article is based on the press release statement from Orchard Funding Group PLC.
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