South West lender announces record turnover and investor returns
South West based lender Folk2Folk has announced record turnover and investor returns for the last 12 months.
The leading peer-to-peer lending platform for businesses, returned a record £15.78m in interest to investors in the 2023/24 tax year, alongside a record turnover of £5.282m, according to its annual results.
The Cornwall and Gloucestershire based business, which operates nationwide, helps business owners across the UK access the finance they need to grow, develop, or diversify while providing fixed-rate, property-backed returns to retail and institutional investors, currently from 8.75% per year.
Since 2013, Folk2Folk has facilitated over £690m in business loans.
For the year ended 31 January 2024, the firm reported a slight decrease in profit before tax to £1.284m from £1.374m in the previous year, due to ongoing fintech investment.
Despite this the business said it had continued to show robust financial performance and sustained growth. This marked the fifth consecutive year of profit, and the third year of paying shareholder dividends, demonstrating the company’s financial stability and resilience, it said.
Folk2Folk posted a pre-tax profit of £1.284 million, demonstrating the company’s ability to maintain profitability in a challenging economic environment.
Roy Warren, managing director of Folk2Folk, said: “I am delighted to announce another successful year marked by our highest ever turnover and substantial interest payments to our investors. This reflects the trust and confidence that businesses and investors have placed in Folk2Folk.
“Maintaining a profitable platform is crucial for the confidence of our investors and the health of the wider P2P sector. Our strong performance is testament to the strength of our business model, the loyalty of our investors, and the dedication of our team.”
Mr Warren added that Folk2Folk has continued to support regional UK economies by providing essential funding to small businesses, enabling them to start, grow, or diversify. This financial support has facilitated job creation, strengthened supply chains, enabled property developments, and funded new local attractions, thereby bolstering visitor economies and contributing to the overall prosperity of these regions.
The firm is also a delivery partner of British Business Investments, a commercial subsidiary of the Government-backed British Business Bank, whose remit is to improve access to alternative finance for smaller businesses across the whole of the UK.
