MONEYTHING’S latest annual report confirmed that the platform was a “going concern”, ahead of the wind-down that was announced earlier this month.
The peer-to-peer business lender said on 6 December 2019 that it would be winding down its platform, blaming lower investor confidence and fierce competition for good-quality loans. It was not insolvent so has not appointed an administrator.
Its annual accounts, for the year ended 31 March 2019, said that the company would be able to meet its liabilities over the next financial year.
“The company has sufficient financial resources and the providers of loans to the business have undertaken not to seek repayment of amounts due unless the company has suggestion resources following their repayment,” wrote the platform’s managing director Sophie Pearce in the director’s report in the annual accounts.
“The company has ongoing arrangements for the provision of a P2P lending platform which are expected to continue for the foreseeable future.
“The directors believe that activity on the platform will be maintained at such a level that the related income of the company will exceed costs, and that the company will be able to meet its liabilities as they fall due or at least twelve months from the date of approval of the financial statements.”
As of 31 March 2019, MoneyThing was owed £2.87m in outstanding debts, including £2.29m from platform loans, according to the report, filed with Companies House.
Creditors were owed £2.88m, including £1.9m of interest payable on platform loans.
The company posted an operating loss of £44,474 for the year, compared to a £162,890 profit for the period from 1 November 2016 to 31 March 2018.
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Earlier this month, Pearce said that although the platform was not insolvent, it “cannot be certain that we can fund new loans with the current low level of lender confidence”.
Pearce added that the high-profile failures of platforms such as Lendy and FundingSecure had had a negative impact on investor confidence.
MoneyThing said it has started the process of winding down its loanbook to ensure the best possible outcome for its investors.