Rebuildingsociety managing director Daniel Rajkumar is expecting his platform to achieve a “modest profit” in 2020, after swinging into the black last year.
The peer-to-peer business lender reported a profit of £215,864, for the year ending 31 December 2019.
This compares to a £2,653 loss in 2018, according to documents filed with Companies House.
“We had a good year that was significantly better than 2018,” said Rajkumar.
“We generated additional revenues from onboarding appointed representatives (ARs), privately syndicated loans were popular and we had a number of recoveries from our enforcement procedures which supported the revenue of the firm.
“It was really good to have a significantly profitable year which strengthened the financial resources of the firm and now we have good aspirations for how the business will grow over the next few months.
“We’ll achieve a modest profit this year. 2020 so far has been a challenging year for most businesses. Fortunately, we’ve managed to trade profitably. We’re in the process of appointing three new senior roles and we have plans to grow the Rebuildingsociety network.”
Rajkumar said that the platform adapted this year after its small- and medium-sized enterprise (SME) lending dropped due to Covid-19 and being unable to compete against government support schemes.
“Our normal SME lending is down but revenues from our private network and onboarding ARs has increased and made up for it,” he said.
“Our diversified revenue streams have been a lifesaver for the business and we’re setting ourselves up for a really strong 2021.”
Propio is the most recent AR the Rebuildingsociety has added onto the Financial Conduct Authority’s register. The property investment platform, which is moving away from mini-bonds, plans to launch a P2P offering by the end of the year.