LONDON (Alliance News) - Orchard Funding Group PLC on Tuesday reported a 33% increase in pretax profit in its last financial year, as it lent GBP43.6 million to clients.
The financial services company, which provides finance to clients of UK insurance brokers and professional firms to spread the cost of their insurance premiums or professional fees, said it made a GBP1.3 million pretax profit in the year to July 31, compared with GBP974,113 in the prior year.
"The company continues to increase its lending to a well-established and trustworthy client base and our recent admission to AIM has enabled the company to raise capital in order to increase lending and reduce finance costs, creating a base for significantly increasing the profitability of the group," Chief Executive Ravi Takhar said in a statement.
Orchard Funding listed on London's AIM junior market in July, when it raised GBP10.0 million by issuing 21.4 million shares at 96 pence.
Shares in Orchard Funding were up 1.8% at 101.80p on Tuesday morning. Panmure Gordon raised its price target on the stock to 155p from 148p, keeping a Buy recommendation.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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Orchard Funding (ORCH)