Ablrate saw its profits rise by more than a third in its latest financial year, which its chief executive attributed to increased margins.
Full-year results from the asset-backed peer-to-peer lender’s parent company Aviation and Tech Capital revealed that its profit for the 12 months to 31 August 2019 rose to £46,194, from £32,320 the previous year.
And Ablrate moved to an operating profit of £46,244 from an operating loss of £14,989 over the same period.
However, turnover dipped to 1.61m from £1.75m, according to the document filed with Companies House.
David Bradley-Ward (pictured), chief executive of Ablrate and director of Aviation and Tech Capital, told Peer2Peer Finance News the growth was down to increased margins.
“We’ve grown year-on-year,” he said.
“Last year we had a lower volume, but we concentrated on increasing our margin and that’s why our profits rose. The margin was a lot higher.
“Our model is a spread model. A lot of other companies will take upfront fees and have less of a margin whereas we do it the other way around. We have a margin, lenders get 12 per cent and we target four per cent on top of that.
“That’s why it’s robust, as long as borrowers are still paying their instalments then our income comes in.”
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Bradley-Ward said despite the challenges from Covid-19, the busines is on target to continue its upward growth curve this year.
“Although this remains to be seen as we get deeper into a recession and our year end is in August,” he said.