CROWDSTACKER’S cumulative losses since inception rose to £1.3m for the 12 months to March 2019, but it has been boosted by more share capital and cash at the bank.
The peer-to-peer business lender’s annual accounts showed it made a loss of £419,089 for the year to March 2019, going deeper into the red from £218,098 a year before, and taking its total loss since it was established in 2015 to £1.3m.
The platform elected not to include a profit and loss account within its financial statement, which it is not required to do as it is a small company.
Its accounts showed it had £1.7m of called up share capital – up from £1.2m in 2018 – £357,403 owed by debtors and £42,175 of cash at the bank – up from £34,741 – as assets.
It comes after Crowdstacker hired former RBS senior corporate director Ken Hillen as its new credit committee chairman to help expand its savings and investment range.
Hillen has spent 40 years working in the financial services sector, having previously held roles at RBS, Anglo Irish Bank and Bank of Ireland.
Crowdstacker said that Hillen will be tasked with “re-aligning all the lending and monitoring processes to prepare Crowdstacker as it makes changes to its business throughout 2019.”
Many P2P platforms are still unprofitable, while they invest heavily in the business to boost their turnover.
Funding Circle recently posted pre-tax losses of £50.7m for 2018, while Folk2Folk reported a trading loss of £535,156 for the 12 months to 30 January 2018.