Category: Top Story

For small businesses, access to fast and flexible finance can be critical to managing cash flow, investing for growth and navigating changing economic conditions. For lenders, however, growth only tells part of the story. The real measure of progress is whether that growth can be delivered profitably.

For Funding Circle, the first half of 2026 provided plenty of evidence that its strategy is gaining momentum.

Speaking on ADVFN’s Watch List, Tony Nicol, CFO of Funding Circle (LSE:FCH), outlined a period of strong financial and operational progress, with the company delivering significant increases in credit extended, revenue and profitability while continuing to scale its newer financial products.

Revenue up 50% as profitability accelerates

Funding Circle extended £1.7 billion of credit during the first half, representing growth of 52% year-on-year. Revenue increased by 50% to £138 million, while profit before tax rose four-fold to £24 million.

A key contributor was the company’s established term-loans business, where originations increased 43% to just over £1 billion.

Importantly, this growth is translating into stronger profitability. Term loans generated £29 million of profit during the period, compared with £13 million a year earlier, while margins increased to 26%.

For investors, this combination of higher volumes, rising revenue and improving margins is particularly encouraging because it demonstrates the operating leverage within the Funding Circle model.

As Nicol explained, the performance has been supported by strong customer demand, pent-up demand entering the year and the contribution from newer products launched during the previous year.

The strength of the first-half performance has also given management greater confidence in the outlook. Funding Circle has upgraded its full-year guidance, moving from revenue of more than £235 million and profit of more than £35 million to revenue of more than £255 million and profit of more than £40 million.

That represents a meaningful improvement in expectations and provides a clear indication of the momentum currently running through the business.

New products broaden the opportunity

While the performance of the core term-loans business remains important, perhaps one of the more interesting aspects of Funding Circle’s development is the progress being made by its newer products, including FlexiPay and its credit card offering.

Transactions across these products increased 71% to £640 million, while revenue rose an impressive 83% to £30 million.

The numbers suggest these products are increasingly becoming an important part of the wider Funding Circle proposition, helping the company address more of the day-to-day working-capital and cash-flow requirements of small businesses.

That gives Funding Circle the opportunity to move beyond a traditional lending relationship and become a more regular financial partner for its customers.

Recurring customer usage provides an attractive model

One of the most compelling elements of the FlexiPay opportunity is the recurring nature of customer usage.

Nicol highlighted that more than 90% of the revenue generated in the first half came from customers who had been onboarded in previous years.

That is an important characteristic of the model. Rather than continually relying on new customer acquisition to drive revenue, Funding Circle can build value from relationships that have already been established.

The company describes this as a “J-curve” economics model, where marketing and credit costs are incurred upfront, while the benefits of repeat customer usage develop over time.

Assets under management for the newer products reached £300 million, up from £206 million at the beginning of the year.

Perhaps even more importantly, Nicol said the business would already be profitable at around £10-12 million if it stopped growing today, while the earlier customer cohorts are already cash generative.

That provides an encouraging foundation from which to continue investing in future growth.

From recovery to profitable growth

Taken together, the first-half numbers point towards a Funding Circle business that has moved well beyond simply pursuing top-line expansion.

The company is growing credit volumes, increasing revenue, expanding margins and delivering substantially higher profitability, while simultaneously developing newer products that could broaden its relationship with small-business customers.

The progress of FlexiPay and the credit card offering could prove particularly significant over the longer term. Their recurring usage characteristics create the potential for customer relationships to become increasingly valuable as they mature.

With full-year revenue guidance now above £255 million and profit guidance above £40 million, Funding Circle enters the second half of the year with increased confidence and a growing platform from which to build.

For small businesses looking for flexible access to finance, the opportunity is clear. For Funding Circle, the first-half performance suggests the company is increasingly demonstrating that growth and profitability can go hand in hand.

For more information visit –   https://corporate.fundingcircle.com

KEFI Gold and Copper (LSE:KEFI) said all employees affected by the recent security incident at its Tulu Kapi Gold Project in Ethiopia have been accounted for, with no additional fatalities or injuries reported following the death of one colleague.

Senior management travelled to Ethiopia following the incident and held discussions with community representatives as well as national and regional authorities. The company said those consultations included reaffirmed support for the project and its role in the local economy.

KEFI is working with lead contractor Lycopodium and local contractors to review and refine development plans for Tulu Kapi. The company said it is taking a cautious approach to restarting activities at the site.

Development work will resume only after the investigation into the incident has been completed and the company is satisfied that a safe operating environment is in place.

KEFI also reported renewed and increased interest from Ethiopian institutions and family offices in providing financing through redeemable preference shares at the subsidiary level. The proposed structure would be non-dilutive at the KEFI shareholder level.

More about KEFI Gold and Copper plc

KEFI Gold and Copper plc is a mineral exploration and development company focused on gold and copper projects in the Arabian-Nubian Shield.

Its portfolio includes the Tulu Kapi Gold Project in Ethiopia as well as mineral projects in Saudi Arabia.

Supermarket Income REIT plc (LSE:SUPR) has acquired six grocery-related properties in the UK for a total of £104 million, completing the deployment of proceeds from its £100 million equity raise in July 2026.

The acquired portfolio comprises supermarkets, an M&S-anchored retail park, a Co-op store, an M&S scheme in Glasgow and a Sainsbury’s grocery distribution centre.

The properties include triple-net leases and a combination of inflation-linked and open-market rent reviews. Several of the assets also support click-and-collect and home-delivery operations.

The latest transaction follows the previously announced acquisition of three supermarkets for £118 million.

Across the two transactions, Supermarket Income REIT said it has now fully deployed the £100 million of equity raised in July. The acquisitions were completed at an average net initial yield of 6.6% and have a weighted average unexpired lease term of 10 years.

The company said the transactions are consistent with its strategy of expanding its portfolio beyond traditional UK supermarkets to include grocery distribution facilities and grocery-anchored retail properties.

More about Supermarket Income REIT Plc

Supermarket Income REIT plc is a FTSE 250 real estate investment trust focused on grocery properties in the UK and Europe.

Its portfolio includes omnichannel supermarkets, grocery-anchored retail properties and distribution facilities leased to supermarket operators. The portfolio was valued at £2.1 billion as of 31 December 2025.

The company’s shares trade on the London Stock Exchange’s Main Market and the Main Board of the JSE Limited in South Africa.

Berkeley Group Holdings (LSE:BKG) reaffirmed its target of £1.4 billion in pre-tax profit over four years, while telling shareholders at its Annual General Meeting that trading since May has been affected by the prolonged Middle East conflict and UK political uncertainty.

The company said enquiry levels have remained stable, although prospective buyers continue to exercise caution. Berkeley is re-phasing its strategy and plans to reduce production by approximately 25% over four years, with an increased focus on cash generation.

For the current financial year, the group expects earnings to be slightly weighted towards the first half.

Berkeley returned £60 million to shareholders through share buybacks during the first four months of the financial year. The company said it is ahead of the required run rate for its target of returning £640 million to shareholders by 2030.

The housebuilder expects to have approximately £250 million of net cash at the half-year point.

Berkeley also called on the UK government to introduce targeted stamp duty reductions for first-time buyers, downsizers and investors. The company additionally advocated consistent implementation of planning reforms in London, saying these measures would support increased housing delivery.

More about The Berkeley Group Holdings

The Berkeley Group Holdings plc is a UK housebuilder focused primarily on residential development in London and the South East.

The company develops private homes, build-to-rent properties and affordable housing, with a significant portion of its activities involving large-scale brownfield regeneration projects.

Phoenix Copper (LSE:PXC) reported an unaudited loss of $1.21 million for the six months ended 30 June 2026, while group net assets stood at $38.21 million.

Investment in the Empire Mine and the company’s other mining assets increased to $45.84 million during the period.

After the period end, Phoenix completed a $3.12 million equity fundraising. The company said the proceeds, together with cost reductions and disposals of non-core assets, enabled it to repay short-term debt and extend its cash runway into the fourth quarter of 2026.

Phoenix has also awarded contracts to Hardrock Consulting to update the open-pit pre-feasibility study for its Empire Mine project.

The existing study outlines 10.1 million tonnes of proven and probable reserves and an estimated mine life of eight years.

The company said current copper, gold and silver prices are above the assumptions used in the 2024 study and expects the updated work to result in improved project economics. The outcome of the revised study remains subject to completion of the technical and economic assessment.

Phoenix is continuing work on project financing alongside the pre-feasibility study update.

More about Phoenix Copper

Phoenix Copper is an AIM-quoted, US-focused exploration and development company targeting copper, gold and silver.

Its principal asset is the polymetallic Empire Mine in Idaho, where the company is advancing an open-pit oxide project and associated processing facilities. Phoenix is also evaluating deeper sulphide mineralisation at the project.

Trainline (LSE:TRN) reported group net ticket sales of £3.3 billion for the first half of FY2027, broadly unchanged year on year, while underlying revenue declined 1% to £233 million.

UK Consumer net ticket sales were stable at £2.1 billion. The company said trading during the period was affected by a regulated fare freeze, strike and weather-related disruption and competition from train operators’ own sales channels.

UK Consumer underlying revenue declined 5% to £102 million, mainly reflecting changes to refund policy and previous commission reductions, partly offset by higher ancillary revenue.

International Consumer net ticket sales fell 4% to £579 million, with Trainline citing rail accidents in Spain, lower foreign travel demand and network disruption. Underlying revenue from the segment increased 1%.

Trainline Solutions recorded a 3% increase in net ticket sales to £548 million. International B2B sales increased 45%, while the expiry of some UK white-label contracts partly offset that growth.

The company expects group adjusted EBITDA as a percentage of net ticket sales to be slightly above its full-year guidance of approximately 2.9%. Trainline reaffirmed its FY2027 outlook for net ticket sales, revenue and profitability and continues to expect International Consumer to reach breakeven.

Trainline also announced a new £100 million share buyback programme, which will begin after completion of its existing programme. The company said this will bring total share repurchases since 2023 to £350 million, with its share count reduced by approximately 28% over that period.

The group is also engaging with the competition regulator regarding an investigation into its presentation of fees.

More about Trainline

Trainline plc operates a digital rail and coach travel platform through its website and mobile application, providing access to routes, fares and journey information from carriers across Europe.

The company operates consumer businesses in the UK and international markets as well as its B2B Trainline Solutions division. Its services also include digital railcards, insurance, advertising and other ancillary products.

Pan African Resources (LSE:PAF) has completed a definitive feasibility study for its Soweto Tailings Retreatment project, located adjacent to the Mogale Tailings Retreatment complex in Gauteng, South Africa.

The proposed project is designed to process 600,000 tonnes of tailings per month from the Soweto Cluster. Pan African expects the operation to produce between 35,000 and 40,000 ounces of gold annually over an estimated 15-year life.

If developed, the project is expected to increase peak production from the wider Mogale Tailings Retreatment complex to approximately 100,000 ounces of gold per year.

The feasibility study estimates capital expenditure of ZAR3.68 billion, following design changes that reduced projected capital requirements by approximately ZAR718 million.

Using a gold price assumption of US$3,550 per ounce, the study estimates a post-tax net present value of approximately ZAR1.85 billion and an internal rate of return of 29.55%.

Pan African said environmental approvals and permitting are progressing, with key authorisations expected during FY27. The company is targeting a final investment decision in December 2026.

The proposed operation would integrate with existing elution, carbon regeneration, electrowinning and smelting infrastructure at the Mogale complex rather than using a fully standalone processing configuration.

Plans also include a dedicated tailings storage facility designed to comply with the Global Industry Standard on Tailings Management. The project would involve the retreatment and subsequent rehabilitation of historical tailings areas on the West Rand.

More about Pan African Resources

Pan African Resources is a gold producer listed in London, Johannesburg and Australia, with mining and tailings retreatment operations in South Africa.

The group’s activities include recovering gold from surface tailings and underground deposits. Its operations include the Mogale Tailings Retreatment complex on South Africa’s West Rand.

Petards (LSE:PEG) reported revenue of £7.7 million for the six months ended 30 June 2026, while adjusted EBITDA increased by more than 50% to £781,000 as the group recorded a higher gross profit margin.

Gross profit margin increased to 52.2%, while Petards reported an operating profit of £14,000. Cash generated from operations rose to £894,000, and net debt declined to £1.16 million at the end of the period.

The company said trading in its Rail and Defence divisions improved during the first half, alongside recurring revenues across the group. Defence activities included progress on a £2.2 million contract with Rheinmetall BAE Systems relating to the Challenger 3 programme.

Petards said Rail order intake reached its highest level in more than five years, supported by retrofit contracts for its eyeTrain technology. The division also secured additional orders in August.

QRO’s performance improved from the levels recorded in late 2025, while Affini reported an increase in managed services revenue despite lower project demand.

The group’s order book stood at £9.6 million at the end of the first half, compared with £9.2 million at the end of 2025.

Petards said it expects further cash generation and a reduction in net debt during the second half. The board also expects full-year results to show a further significant improvement compared with 2025.

The extent of QRO’s full-year performance remains dependent on the timing of law-enforcement orders.

More about Petards

Petards Group plc is an AIM-quoted developer of security, communications and surveillance technologies serving the rail, traffic, defence and critical communications markets.

Its operations include the eyeTrain and RTS rail businesses, QRO and ProVida traffic enforcement activities, defence engineering operations and Affini’s wireless and managed communications services.

The group’s revenues include project-based equipment supply, retrofits and upgrades, as well as recurring income from maintenance, software and managed services contracts.