Property-backed peer-to-peer lending platform EasyMoney saw its losses narrow in 2019 while revenue increased, as the platform hopes to become profitable in 2021.
According the directors’ report and financial statements summary published on Companies House, in the 12 months ending 31 December 2019, EasyMoney made an operating loss of approximately £1.023m. For the 12 months ending 31 December 2018, operating losses were just over £1.47m.
The platform’s turnover increased to £801,051 in 2019 – up from £306,465 the previous year. This led the independent auditors Warrener Stewart to state that the company is on course to reach profitability in 2021.
“Although the company realised a loss for the year, this was after continuing investment in marketing and platforms development and the increase in revenues means that losses are reducing,” the auditors wrote in the directors’ report and financial statements.
“The company is projected to incur further, but reduced losses in the current financial year and to move into profitability in 2021 and beyond. In the meantime, the business enjoys a strong capital base and considerable support from its investors.”
The auditors added that they expects demand for specialist lending to remain strong in the medium term, due to the economic impact of the pandemic.
“Because of the Covid-19 pandemic, the second quarter of 2020 is experiencing an impact on financial markets and day-to-day working,” said the auditors.
“As a result, a series of precautionary and control measures has been implemented and the board is paying close attention to the development of the pandemic and its potential impact on the business.
“Demand for specialist lending is likely to remain strong in the medium term. The company has brought into play business continuity measures such as remote working and the board is not currently aware of any material adverse impact on the 2019 financial statements as a result of the Covid-19 pandemic.”
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