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Orchard Funding
(LSE:ORCH)
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Rating:69Neutral
Price Target:
75.00 p
▲(23.97% Upside)
Action:Reiterated
Date:08/02/26
The score is driven primarily by solid financial performance (strong profitability but offset by the 2026 revenue decline, meaningful leverage, and historically volatile cash flow). Technicals add support as the price trades above key moving averages, and valuation is a major positive given the very low P/E and healthy dividend yield.
Positive Factors
Strong Profitability
Very high margins and rising net income indicate that Orchard Funding’s lending and premium-finance activities can generate substantial earnings from its operating base. This profitability provides internal capacity to support investment, absorb moderate pressure, and sustain shareholder returns.
Negative Factors
Recent Revenue Decline
The 13% revenue decline in the latest reported year shows that Orchard Funding’s growth has become less consistent after several years of expansion. A sustained top-line slowdown could limit operating leverage, reduce future earnings growth, and make profitability more dependent on margins rather than business volume.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Profitability
Very high margins and rising net income indicate that Orchard Funding’s lending and premium-finance activities can generate substantial earnings from its operating base. This profitability provides internal capacity to support investment, absorb moderate pressure, and sustain shareholder returns.
Read all positive factors
Orchard Funding (ORCH) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£14.63M
Dividend Yield5.84%
Average Volume (3M)25.74K
Price to Earnings (P/E)4.0
Beta (1Y)-0.49
Revenue Growth53.19%
EPS Growth129.54%
CountryUK
Employees23
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.17
Shares Outstanding21,354,168
10 Day Avg. Volume37,834
30 Day Avg. Volume25,739
Financial Highlights & Ratios
PEG Ratio0.39
Price to Book (P/B)0.55
Price to Sales (P/S)1.22
P/FCF Ratio1.86
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 is a UK-based financial services company, operating through its various subsidiaries, which specializes in providing flexible financing solutions. The company enables both businesses and individual customers to manage the...
Orchard Funding Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
58
Neutral
Cash Flow
52
Neutral
| Breakdown | TTM | Jan 2026 | Jul 2025 | Jul 2024 | Jul 2023 | Jul 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.35M | 10.49M | 10.50M | 9.64M | 7.86M | 6.19M |
| Gross Profit | 10.20M | 10.31M | 9.93M | 5.37M | 4.14M | 4.78M |
| EBITDA | 6.52M | 6.51M | 5.86M | 2.23M | 2.22M | 1.94M |
| Net Income | 3.65M | 3.29M | 3.07M | 1.58M | 1.71M | 1.52M |
Balance Sheet | ||||||
| Total Assets | 68.54M | 67.82M | 67.55M | 69.19M | 61.88M | 48.84M |
| Cash, Cash Equivalents and Short-Term Investments | 1.07M | 1.07M | 639.00K | 1.48M | 2.55M | 4.80M |
| Total Debt | 33.64M | 33.64M | 32.86M | 40.22M | 34.72M | 25.52M |
| Total Liabilities | 43.66M | 44.61M | 46.04M | 50.25M | 44.13M | 32.16M |
| Stockholders Equity | 24.87M | 23.19M | 21.54M | 18.90M | 17.75M | 16.68M |
Cash Flow | ||||||
| Free Cash Flow | 2.36M | 6.87M | 6.99M | -6.14M | -10.72M | -9.94M |
| Operating Cash Flow | 2.36M | 6.89M | 7.01M | -5.47M | -10.66M | -9.92M |
| Investing Cash Flow | -2.00K | -15.00K | -14.00K | -628.00K | -97.00K | -16.00K |
| Financing Cash Flow | -1.92M | -7.28M | -7.84M | 5.03M | 8.51M | 12.56M |
Orchard Funding Technical Analysis
Positive
60.50
Price Trends
60.53
Positive
59.81
Positive
57.47
Positive
Market Momentum
2.24
Negative
87.40
Negative
70.25
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ORCH, the sentiment is Positive. The current price of 60.5 is below the 20-day moving average (MA) of 62.77, below the 50-day MA of 60.53, and above the 200-day MA of 57.47, indicating a bullish trend. The MACD of 2.24 indicates Negative momentum. The RSI at 87.40 is Negative, neither overbought nor oversold. The STOCH value of 70.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | £54.49M | 8.90 | 8.28% | 5.58% | 5.19% | 14.53% | |
69 Neutral | £14.63M | 4.01 | 15.18% | 5.84% | 53.19% | 129.54% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
61 Neutral | £569.06M | 9.89 | 26.71% | ― | 52.96% | 242.50% | |
44 Neutral | £8.35M | -0.52 | 216.55% | 8.45% | 37.16% | -1246.15% |
* Financial Sector Average
GB:ORCH
Orchard Funding
71.50
16.11
29.08%
GB:TIME
Time Finance plc
58.90
9.40
18.99%
GB:BANK
Immedia
2.25
-7.50
-76.92%
GB:LEND
Sancus Lending Group
0.73
0.29
64.77%
GB:FCH
Funding Circle Holdings
212.50
79.70
60.02%
GB:ZAIM
Zaim Credit Systems Plc
4.50
0.00
0.00%
Orchard Funding Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Orchard Funding lifts half‑year profit as lower funding costs offset softer lending
Positive
Oct 13, 2026
Orchard Funding Group PLC reported a 32 percent rise in profit before tax to £2.52 million for the six months to 31 July 2026, despite a 5.14 percent decline in overall lending volumes and slightly lower total revenue. Improved profitability ...
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.