FOLK2FOLK announces it has turned a six-figure post-tax profit in its 2019 financial year.
Full audited accounts have been filed with Companies House and show FOLK2FOLK reporting a profit of £198,000 for the financial year February 2019 to January 2020.
The company’s achievement can be attributed to new Managing Director Roy Warren (previously FOLK2FOLK’s Head of Risk & Loan Portfolio), who quickly brought greater fiscal vigour and discipline to the operations and management of the platform.
2019 saw FOLK2FOLK streamline its loan origination; complete its largest loan; sign its first local authority investor; and maintain the steadfast loyalty of its retail investor customers.
Roy said: “Platform profitability has become increasingly important, not just for the FCA, but for retail and institutional investor decision-making.
“I’m proud that FOLK2FOLK has made a big step forward in building its financial strength, including strong positive cashflow. Achieving profitability despite the market-impacting forces of Brexit, the election and now coronavirus is a significant milestone for the company and testament to our team’s commitment and our customers’ loyalty“.
Since the start of the coronavirus crisis in February, FOLK2FOLK has seen a continuing trend in business levels, facilitating £8m of loans and investments, bringing the company’s cumulative lending volume to in excess of £350m.
“Stability of peer to peer platforms is important right now. Creditworthy businesses, who can’t access finance from their bank, need alternative finance providers. We’re grateful that our profitability status puts FOLK2FOLK in a strong position to be able to continue to help.”
FOLK2FOLK has kept its secondary market operating and it remains free to invest via the platform. The company has applied to the British Business Bank to become an accredited lender under the coronavirus loan interruption scheme (CBILS) and is awaiting to hear the outcome.