Folk2Folk is on track to deliver a pre-tax profit of £1.98m for its 2021 financial year, nearly double the previous year’s £1.1m, as it targets further growth through to institutional investments and the acquisition of loan books from other platforms.
The peer-to-peer lending platform and specialist lender for UK regional small and medium-sized businesses said the profit, subject to audit, will be the biggest yet and marks three consecutive years of profit for the business.
In 2021, Folk2Folk returned to its pre-2020 record of double-digit loan portfolio growth, reached an annual loan record of £108m, expanded into Northern Ireland and secured a £7 million line of finance from British Business Investments.
Going forward, chief executive Roy Warren (pictured) said the platform has ‘ambitious plans for growth’, sees significant lending volumes, is considering institutional investments and aims to exploit an opportunity to acquire lending books from other platforms.
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“I’m proud that in 2021 we’ve delivered on what we said we were going to do and are financially strong,” he said.
“But we’re not stopping there, we have ambitious growth plans for this year that are already advancing at a solid pace. We see huge opportunities to underwrite massive volumes of loans across the UK, and institutional investing is a key part of our strategy to support this.
“We also expect the alternative finance market to continue to consolidate and provide us with the opportunity to acquire lending books from other platforms. We see this as a growth area for us and we are actively looking into the market to move forward.
“We have to anticipate that 2022 is likely to be a difficult year for everyone, against the backdrop of inflation, rising interest rates and hostilities in Eastern Europe, all of which fuel an uncertain external environment. This makes it all the more important to have a strong and solid foundation for any business.
“With only a small handful of lending platforms making a profit, our high profit levels are a testament to Folk2Folk’s stability in terms of finances, activity levels and governance, and we know this builds investor confidence and borrowers in us.”
In September, Folk2Folk said it was on track to double its profits in 2021 after breaking the £1million profit barrier the year before.