Shojin Partners reduced its losses significantly in the year ending 30 June 2019.
The property investment platform made a loss of around £830,000 in the 12 months ending 30 June 2019, according to its latest accounts filed with Companies House. This was a significant improvement from a £2.64m loss in its 2018 accounts.
The balance sheet also revealed that Shojin substantially increased its cash holdings, from just over £4,000 in 2018, to £215,148 in 2019.
£2.5m is owed to creditors over the year ahead, including more than £1.8m which is due to be collected via mini-bonds and other loans. A further £2.4m is due to creditors after more than one year, including £1.68m through mini-bonds and other loans.
Shojin’s total number of employees fell to 10 in 2019 from 14 the previous year.
The firm offers a range of debt and equity investments in UK property, some of which are eligible to be held within an Innovative Finance ISA.
“Shojin’s losses have narrowed and we expect to be in profit at the end of this year,” chief executive Jatin Ondhia told Peer2Peer Finance News via email.
“The reason for this is that we make most of our income by sharing profits at the end of each project and so earlier projects have been completing and paying out the profits to Shojin. This is being supported by the further pursuit of good quality projects, strong risk management and cost control.”
Ondhia added that over the past 18 months, the company has made huge strides in striking local partnerships for inward investment into the UK market.
While UK investment has recently slowed down, they are seeing more interest from the Asian market.
“This gives us hope about how things may play out in the UK,” he added.
Additionally, Shojin started the process of a series A fundraise earlier this year to help grow the business. Ondhia said that this plan remains in place and they are seeing significant interest.