The Cornwall-based local lending company, Folk2Folk, has reported a £198k profit for the last financial year.
In doing so, the Launceston-based company joins the ranks of the few peer to peer (P2P) platforms worldwide to have attained profitability.
Folk2Folk credits the achievement to new MD Roy Warren taking the helm last May. Warren, who had been the platform’s head of risk & loan portfolio, quickly brought greater fiscal vigour and discipline to the operations and management of the platform.
He said: “Platform profitability has become increasingly important, not just for the FCA (Financial Conduct Authority), but for retail and institutional investor decision-making. Many view it as an indicator of whether a peer to peer platform is viable and has a sustainable future.
“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 breakthrough for the company and testament to our team’s commitment and our customers’ loyalty.”
Since the start of the coronavirus crisis, Folk2Folk says it has seen a continuing trend in business levels, facilitating £8 million of loans and investments, bringing the company’s cumulative lending volume to in excess of £350 million.
“Stability of peer to peer platforms is important right now,” Warren added. “Creditworthy businesses in Cornwall and the wider south west, 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 do that.”