FOLK2FOLK, the national Marketplace lender for SMEs in regional Britain, has announced it expects to turn a seven-figure profit for its 2020 financial year, surpassing the company’s pre-pandemic profit target for 2020.
The anticipated profit of around £1M is a significant increase from FOLK2FOLK’s pre-tax profit of £198k for the previous year, and marks two consecutive years of profit for the company.
This latest announcement builds on a strong start to the year for FOLK2FOLK, who have announced new additions to its Broker team, a lending milestone of £400M and strong uptake of its Innovative Finance ISA (IFISA). This month, the company celebrates its biggest month to date, during which it facilitated £15M of borrowing and investing.
Roy Warren, FOLK2FOLK Managing Director, said: “Platform profitability is of increasing importance to all stakeholders, with investors in particular seeking stable investment vehicles and returns.
“Despite the headwinds presented by COVID-19, we have gone beyond our 2020 profit target which was set well before the outbreak of the pandemic, making it an even more meaningful achievement for us.
“We believe this resulted from keeping our doors open and remaining supportive, for all our borrowers and investors alike. We helped other businesses stay afloat, and made a profit ourselves by doing so. We take a very human approach and I think that shone through particularly brightly last year and stood us in very good stead.”
“We’re excited by the buzz and momentum we’re feeling within our business. Our consistent performance enables us to stand tall, and our strong cashflow position enables us to invest in our own future growth.”
FOLK2FOLK injected around £60M into SMEs during 2020, enabling hundreds of small businesses across a variety of sectors to grow, diversify or adapt to the new Covid-19 environment. The company delivered around £12M in gross interest payments to its investors, who typically earn a 6.5% p.a. interest rate.
The audit of the accounts is expected to be complete at the end of April, with full audited accounts available via Companies House thereafter.
(Update 07.05.2021 – audit not yet finalised.)