19 May 2021

Strong start to 2021 with total income and AEBITDA in H1 anticipated to be well ahead of expectations.

Embargoed until 7.00am, 19 May 2021

Ahead of today's Annual General Meeting, Funding Circle Holdings plc (“Funding Circle”) today issues the following update.

Following a good start to the year, trading has been stronger than anticipated and we now expect to deliver total income no lower than £120 million and AEBITDA no lower than £40 million profit in H1 2021, well ahead of previous expectations. Our machine learning and technology platform is transforming the small business borrowing experience and as a result of Covid we are seeing an acceleration in the adoption of online borrowing, which has opened up an enlarged opportunity for Funding Circle. Whilst we remain mindful of the uncertain economic environment, we are well-placed to continue helping small businesses in 2021.

Samir Desai CBE

CEO and Founder

 Trading and Outlook

Following a good start to the year, trading has been stronger than expected due to higher origination volumes in the UK and the extension of the PPP scheme in the US. The loanbook is stable and performing better than expected so far this year - in our forecasts we continue to expect some credit stress as the UK and US economies reopen.

Due to the strong start to 2021 total income and AEBITDA are anticipated to be well ahead of previous expectations. We now expect H1 2021 total income to be no lower than £120 million and AEBITDA to be no lower than £40 million profit, with both operating and investment AEBITDA well ahead of H2 2020 levels.

Our guidance for the balance of the year remains unchanged. Loans under management and originations over the course of the full year will depend on how quickly the economies recover in the UK and US. As we transition to operating our core loan product alongside government guarantee programmes in the UK and US, we expect some initial reduction in lending. We continue to expect to be AEBITDA profitable for the full year, with profitability skewed towards H1 2021.

Next update

Funding Circle’s half year results for the six months ending 30 June 2021 will be announced on Thursday, 9 September 2021.

Investor relations and media relations:

Investor Relations

David de Koning - Director of Investor Relations and Communications (0203 927 3893)

Media relations

Natasha Jones - Head of UK Communications (020 3667 2245)

Headland Consultancy - Mike Smith / Stephen Malthouse (020 3805 4822)

About Funding Circle:

 Funding Circle (LSE: FCH) is a small and medium enterprise (“SME”) loans platform. Since launching in 2010, investors and lenders across Funding Circle's geographies - including banks, asset management companies, insurance companies, government-backed entities, retail investors and funds - have lent more than £12 billion to 100,000 businesses globally.

 Forward looking statements and other important information

 This document contains forward looking statements, which are statements that are not historical facts and that reflect Funding Circle’s beliefs and expectations with respect to future events and financial and operational performance. These forward looking statements involve known and unknown risks, uncertainties, assumptions, estimates and other factors, which may be beyond the control of Funding Circle and which may cause actual results or performance to differ materially from those expressed or implied from such forward-looking statements.  Nothing contained within this document is or should be relied upon as a warranty, promise or representation, express or implied, as to the future performance of Funding Circle or its business. Any historical information contained in this statistical information is not indicative of future performance.

The information contained in this document is provided as of the dates shown.  Nothing in this document should be construed as legal, tax, investment, financial, or accounting advice, or solicitation for or an offer to invest in Funding Circle.