Orchard Funding lifts expectations amid strong premium finance market

25th Jun 2024 11:18

(Sharecast News) - Insurance premium finance and professions funding specialist Orchard Funding Group reported a robust performance in the insurance premium finance market on Tuesday, driving revenue growth through increased lending.

The AIM-traded firm said in a trading update that, by applying a disciplined approach to its growth, it had successfully maintained its income despite the higher interest rate environment.

As a result of the strong performance, its management said it now expected earnings to exceed current market guidance by over 20%.

"We continue to focus on the controlled and conservative growth of our business and are pleased to be able to notify the market that we reasonably believe, subject to final audit, that we will exceed current market guidance by over 20%," said chief executive officer Ravi Takhar.

"We continue to strengthen our lending in our core insurance premium finance market as well as our lending in adjacent markets.

"We are optimistic that our ability to lend, develop and operate our own software and our loyal and experienced staff will continue to deliver positive results to the company and all its stakeholders."

At 0958 BST, shares in Orchard Funding Group were up 17.86% at 33p.

Reporting by Josh White for Sharecast.com.