FundingCircle shares plunge as it cuts guidance

FTSE 250 SME loans platform FundingCircle (LON:FCH) has seen its share price drop by 24.58% to 122.94p (as of 13:25 BST) after the company halved its revenue growth forecast for 2019. Management said that demand for loans had dropped due to a more uncertain economic outlook and the company was taking steps to protect net returns for investors.

CEO Samir Desai said: “the uncertain economic environment has reduced demand from small businesses and led us to proactively tighten lending criteria. As a result, revenue growth will be impacted. We recognise that this is a change from our previous guidance, but we are taking the prudent course of action for the long-term growth and development of our business. We remain confident in our aim to become the world’s largest small business loans provider, helping millions of businesses to create jobs and support economic growth“.