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Orchard Funding
(LSE:ORCH)
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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)
Market Cap
£12.92M
Dividend Yield3.31%
Average Volume (3M)35.20K
Price to Earnings (P/E)3.9
Beta (1Y)-0.68
Revenue Growth63.15%
EPS Growth212.72%
CountryUK
Employees23
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.15
Shares Outstanding21,354,168
10 Day Avg. Volume38,559
30 Day Avg. Volume35,197
Financial Highlights & Ratios
PEG Ratio0.56
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)£11.04M
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 | Jan 2026 | Jul 2025 | Jul 2024 | Jul 2023 | Jul 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 10.49M | 10.50M | 9.64M | 7.86M | 6.19M |
| Gross Profit | 10.31M | 9.93M | 5.37M | 4.14M | 4.78M |
| EBITDA | 6.51M | 5.86M | 2.23M | 2.22M | 1.94M |
| Net Income | 3.29M | 3.07M | 1.58M | 1.71M | 1.52M |
Balance Sheet | |||||
| Total Assets | 67.82M | 67.55M | 69.19M | 61.88M | 48.84M |
| Cash, Cash Equivalents and Short-Term Investments | 1.07M | 639.00K | 1.48M | 2.55M | 4.80M |
| Total Debt | 33.64M | 32.86M | 40.22M | 34.72M | 25.52M |
| Total Liabilities | 44.61M | 46.04M | 50.25M | 44.13M | 32.16M |
| Stockholders Equity | 23.19M | 21.54M | 18.90M | 17.75M | 16.68M |
Cash Flow | |||||
| Free Cash Flow | 6.87M | 6.99M | -6.14M | -10.72M | -9.94M |
| Operating Cash Flow | 6.89M | 7.01M | -5.47M | -10.66M | -9.92M |
| Investing Cash Flow | -15.00K | -14.00K | -628.00K | -97.00K | -16.00K |
| Financing Cash Flow | -7.28M | -7.84M | 5.03M | 8.51M | 12.56M |
Orchard Funding Technical Analysis
Neutral
60.50
Price Trends
62.02
Negative
58.72
Positive
58.42
Positive
Market Momentum
-0.40
Positive
33.01
Neutral
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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | £53.38M | 8.72 | 8.28% | 5.58% | 5.19% | 14.53% | |
69 Neutral | £12.92M | 3.93 | 14.71% | 3.31% | 63.15% | 212.72% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
58 Neutral | £655.39M | 15.55 | 21.54% | ― | 37.60% | 2766.67% | |
46 Neutral | £10.74M | 6.25 | -246.75% | 8.45% | 35.19% | ― |
* Financial Sector Average
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.