Funding Circle

Funding Circle has seen its share price drop after its halved its revenue forecast for this year.

The peer-to-peer lending platform, which allows individuals to invest in small businesses, had previously forecast revenue growth of 40% for the year. But it now expects income to grow just 20%.

It blamed an "uncertain economic environment" for a drop in demand for business loans.

The company, which listed on the London Stock Exchange in 2018, saw its share price fall 25% when trading began on Tuesday, before recovering slightly to a 16% decrease. It floated with a price of 440p per share, but shares are now worth just 130p.

Funding Circle chief executive, Samir Desai, said: "The uncertain economic environment has reduced demand from small businesses and led us to proactively tighten lending criteria."