Since the FY21 results in October 2021 when management struck a cautious note, expecting lending to remain muted due to the ongoing economic uncertainty at the time, today’s 1H22 trading update highlights that lending has recovered at a faster rate than those expectations. Demand for funding has risen across most lending lines with lending up 27% YoY to £38.2m while the average loan book increased by 21% to £33.5m over the same period. While encouraging, management remains cautious in its optimism given the current geopolitical and economic uncertainties. However, with the update exceeding our expectations, we increase our FY22 revenue and PBT by 9% and 38% respectively, while maintaining our FY23 forecasts and target price of 66p. With 27% upside we reiterate our BUY rating.