Orchard Funding Group PLC (GB:ORCH)
LSE:ORCH
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Orchard Funding
(LSE:ORCH)
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Rating:62Neutral
Price Target:
59.00 p
▼(-1.67% Downside)
Action:DowngradedDate:03/24/26
The score is driven primarily by improved recent financial performance, tempered by high leverage and historically inconsistent cash flow. Technicals are weak with the stock below key moving averages and negative momentum, while valuation support (very low P/E and a decent yield) lifts the overall score.
Positive Factors
Improved Profitability
Orchard's jump to ~29% net margin in 2025 from ~16% demonstrates a meaningful step-up in underlying profitability. Sustained higher margins imply stronger pricing, cost control, or mix improvement that can support durable cash generation and reinvestment over the medium term.
Negative Factors
Elevated Leverage
Leverage at ~1.5x equity (and >2.0x in prior years) leaves Orchard sensitive to higher funding costs or credit stress. Elevated debt increases refinancing risk, constrains strategic flexibility, and can amplify earnings volatility if market conditions or interest rates deteriorate.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Profitability
Orchard's jump to ~29% net margin in 2025 from ~16% demonstrates a meaningful step-up in underlying profitability. Sustained higher margins imply stronger pricing, cost control, or mix improvement that can support durable cash generation and reinvestment over the medium term.
Read all positive factors
Orchard Funding (ORCH) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£11.85M
Dividend Yield3.33%
Average Volume (3M)31.44K
Price to Earnings (P/E)2.2
Beta (1Y)-0.83
Revenue Growth8.91%
EPS Growth94.32%
CountryUK
Employees23
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.07
Shares Outstanding21,354,168
10 Day Avg. Volume34,771
30 Day Avg. Volume31,443
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)0.61
Price to Sales (P/S)1.26
P/FCF Ratio1.89
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.15
Revenue Forecast (FY)£11.05M
Orchard Funding Business Overview & Revenue Model
Company Description
Orchard Funding Group plc, through its subsidiaries, provides insurance premium finance, professional fee funding, and finance services in the United Kingdom. It offers credit to businesses and consumers to spread the cost of their insurance premi...
Orchard Funding Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
56
Neutral
Cash Flow
47
Neutral
| Breakdown | Jul 2025 | Jul 2024 | Jul 2023 | Jul 2022 | Jul 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 10.50M | 9.64M | 7.86M | 6.19M | 4.60M |
| Gross Profit | 9.93M | 5.37M | 4.14M | 4.78M | 3.37M |
| EBITDA | 5.86M | 2.23M | 2.22M | 1.94M | 1.12M |
| Net Income | 3.07M | 1.58M | 1.71M | 1.52M | 839.00K |
Balance Sheet | |||||
| Total Assets | 67.55M | 69.19M | 61.88M | 48.84M | 32.44M |
| Cash, Cash Equivalents and Short-Term Investments | 639.00K | 1.48M | 2.55M | 4.80M | 2.17M |
| Total Debt | 32.86M | 40.22M | 34.72M | 25.52M | 12.32M |
| Total Liabilities | 46.04M | 50.25M | 44.13M | 32.16M | 16.64M |
| Stockholders Equity | 21.54M | 18.90M | 17.75M | 16.68M | 15.80M |
Cash Flow | |||||
| Free Cash Flow | 6.99M | -6.14M | -10.72M | -9.94M | -652.00K |
| Operating Cash Flow | 7.01M | -5.47M | -10.66M | -9.92M | -649.00K |
| Investing Cash Flow | -14.00K | -628.00K | -97.00K | -16.00K | -78.00K |
| Financing Cash Flow | -7.84M | 5.03M | 8.51M | 12.56M | 597.00K |
Orchard Funding Technical Analysis
Negative
60.00
Price Trends
59.61
Negative
59.32
Negative
58.80
Negative
Market Momentum
-1.01
Positive
35.61
Neutral
26.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ORCH, the sentiment is Negative. The current price of 60 is above the 20-day moving average (MA) of 58.67, above the 50-day MA of 59.61, and above the 200-day MA of 58.80, indicating a bearish trend. The MACD of -1.01 indicates Positive momentum. The RSI at 35.61 is Neutral, neither overbought nor oversold. The STOCH value of 26.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:ORCH.
Orchard Funding Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | £40.24M | 3.46 | 8.28% | ― | 11.71% | 31.15% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | £11.85M | 2.16 | 14.61% | 3.33% | 8.91% | 94.32% | |
55 Neutral | £11.28M | 2.46 | ― | ― | 30.78% | ― | |
55 Neutral | £373.66M | 8.64 | 21.54% | ― | 7.90% | ― |
* Financial Sector Average
GB:ORCH
Orchard Funding
55.50
28.57
106.09%
GB:TIME
Time Finance plc
43.50
-8.00
-15.53%
GB:BANK
Immedia
6.63
0.25
3.84%
GB:LEND
Sancus Lending Group
1.05
0.55
110.00%
GB:FCH
Funding Circle Holdings
130.00
17.50
15.56%
GB:ZAIM
Zaim Credit Systems Plc
4.50
0.00
0.00%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.