Orchard Funding trading 'sound', restarts banking licence application

Insurance premium finance provider Orchard Funding said in a trading update on Wednesday that its performance in the year to the end of July was "sound", with lending and revenue numbers all expected to be higher than 2018.

Lending volumes increased 6.40% to £73.13m, while Orchard's total loan book expanded 4.49% to £32.34m.

During the year, Orchard explored alternatives to obtaining its own banking licence and consequently withdrew its application.

However, the AIM-listed group concluded that acquiring its own licence was its "preferred course of action" and led it to restart the application process in its current trading year.

As a result, banking licence application costs for the year were expected to be lower than previously anticipated.

Chief executive Ravi Takhar said: "We have again delivered a very satisfactory and solid performance to all of our stakeholders. Orchard continues to blossom and we look forward to another year of great opportunity in our markets."

As of 0900 BST, Orchard shares had slipped 1.96% to 75p.