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Orchard Funding Group PLC (GB:ORCH)
LSE:ORCH
UK Market
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Orchard Funding (ORCH) AI Stock Analysis

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GB:ORCH

Orchard Funding

(LSE:ORCH)

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Neutral 69 (OpenAI - 5.2)
Rating:69Neutral
Price Target:
68.00 p
▲(12.40% 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
Profitability
Very high margins and rising net income across 2024–2026 indicate durable earnings power. Sustained profitability supports internal investment, dividend capacity and resilience to cyclical revenue dips, enabling the firm to fund operations and strategic initiatives without relying solely on external capital.
Negative Factors
Meaningful leverage
Debt at ~1.45x equity represents meaningful leverage for a small credit-services firm, constraining financial flexibility. Elevated leverage increases interest and refinancing risk, making investment and payout policies vulnerable to rate moves or tighter credit markets and reducing shock absorption capacity.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability
Very high margins and rising net income across 2024–2026 indicate durable earnings power. Sustained profitability supports internal investment, dividend capacity and resilience to cyclical revenue dips, enabling the firm to fund operations and strategic initiatives without relying solely on external capital.
Read all positive factors

Orchard Funding (ORCH) vs. iShares MSCI United Kingdom ETF (EWC)

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
Profitability is strong with very high margins and rising net income from 2024 to 2026 (supports the score), but the latest year shows a notable revenue decline (-13% in 2026). The balance sheet remains meaningfully leveraged (debt ~1.45x equity in 2026), and cash flow has improved recently but was volatile with multiple negative years earlier and lower FCF in 2026 vs 2025.
Income Statement
74
Positive
Balance Sheet
58
Neutral
Cash Flow
52
Neutral
BreakdownJan 2026Jul 2025Jul 2024Jul 2023Jul 2022
Income Statement
Total Revenue10.49M10.50M9.64M7.86M6.19M
Gross Profit10.31M9.93M5.37M4.14M4.78M
EBITDA6.51M5.86M2.23M2.22M1.94M
Net Income3.29M3.07M1.58M1.71M1.52M
Balance Sheet
Total Assets67.82M67.55M69.19M61.88M48.84M
Cash, Cash Equivalents and Short-Term Investments1.07M639.00K1.48M2.55M4.80M
Total Debt33.64M32.86M40.22M34.72M25.52M
Total Liabilities44.61M46.04M50.25M44.13M32.16M
Stockholders Equity23.19M21.54M18.90M17.75M16.68M
Cash Flow
Free Cash Flow6.87M6.99M-6.14M-10.72M-9.94M
Operating Cash Flow6.89M7.01M-5.47M-10.66M-9.92M
Investing Cash Flow-15.00K-14.00K-628.00K-97.00K-16.00K
Financing Cash Flow-7.28M-7.84M5.03M8.51M12.56M

Orchard Funding Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price60.50
Price Trends
50DMA
62.02
Negative
100DMA
58.72
Positive
200DMA
58.42
Positive
Market Momentum
MACD
-0.40
Positive
RSI
33.01
Neutral
STOCH
15.73
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ORCH, the sentiment is Neutral. The current price of 60.5 is below the 20-day moving average (MA) of 62.10, below the 50-day MA of 62.02, and above the 200-day MA of 58.42, indicating a neutral trend. The MACD of -0.40 indicates Positive momentum. The RSI at 33.01 is Neutral, neither overbought nor oversold. The STOCH value of 15.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:ORCH.

Orchard Funding Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
£53.38M8.728.28%5.58%5.19%14.53%
69
Neutral
£12.92M3.9314.71%3.31%63.15%212.72%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
58
Neutral
£655.39M15.5521.54%37.60%2766.67%
46
Neutral
£10.74M6.25-246.75%8.45%35.19%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:ORCH
Orchard Funding
60.50
7.29
13.70%
GB:TIME
Time Finance plc
57.70
4.20
7.85%
GB:BANK
Immedia
4.00
-10.25
-71.93%
GB:LEND
Sancus Lending Group
1.00
0.55
122.22%
GB:FCH
Funding Circle Holdings
231.50
106.50
85.20%
GB:ZAIM
Zaim Credit Systems Plc
4.50
0.00
0.00%

Orchard Funding Corporate Events

Business Operations and StrategyShareholder Meetings
Orchard Funding Wins Full Shareholder Backing at AGM
Positive
Jul 23, 2026
Orchard Funding Group PLC reported that all resolutions proposed at its latest Annual General Meeting were duly passed by shareholders, affirming broad investor support for the company’s current strategy and governance framework. The outcome...
DividendsFinancial DisclosuresShareholder Meetings
Orchard Funding Sets AGM Date and Confirms Final Dividend Plan
Positive
Jul 7, 2026
Orchard Funding Group PLC has circulated its annual report and accounts for the 18‑month period to 31 January 2026 to shareholders and published them on its website, alongside the formal notice of its 2026 annual general meeting. The AGM is ...
Business Operations and StrategyDividendsFinancial Disclosures
Orchard Funding lifts profit and resumes dividends after strong 18‑month period
Positive
Jun 25, 2026
Orchard Funding Group reported a strong 18‑month performance to 31 January 2026, following a change in its year-end, with lending volumes rising to £182.77m and net total income reaching £12.68m. Profit before tax climbed to £...
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.Date of analysis: Aug 02, 2026