ThinCats has revealed that it became profitable in the fourth quarter of this year, after its losses widened in 2019.
The alternative business lender’s latest annual results, which are set to be filed with Companies House this week, reported a loss of £9.385m in 2019 – up from a £8.177m loss in 2018.
However, the former peer-to-peer lender reported a 110 per cent year-on-year rise in revenues to £7.2m in 2019, which it attributed to higher lending volumes.
ThinCats provided £200m in funding in 2019, up from £112m in 2018.
Managing director Ravi Anand described 2019 as a “great year” for the platform and said that despite the Covid-19 crisis, it has met its ambitions for 2020.
“Although it now seems like a long time ago, 2019 was a great year for ThinCats with record loan origination,” said Anand.
“Throughout the year, we invested in our team to continue to build our reputation with corporate finance advisers and support mid-sized businesses.
“2020 has been challenging for the whole economy, but we’re pleased the way the business is performing. We became profitable in the fourth quarter this year and will be profitable in 2021.”
In December 2019, the platform announced that it was closing to retail investors in order to focus on institutional funding. Earlier this year, ThinCats won approval by the British Business Bank to offer the coronavirus business interruption loan scheme (CBILS).
“Our ambitions for 2020 were to continue to expand our market penetration”, the annual report said.
“Our plans involved further investment in both people, data and technology to simplify the funding application, credit assessment and completion process. Alongside this we were planning to continue our marketing and investment in educating businesses and advisers on the benefits of alternative finance.
“Whilst our plans have changed due to Covid-19, our ambitions remain strong for 2020 particularly via origination through the government-backed loan scheme CBILS.
“There are current uncertainties in the global economy related to the Covid-19 outbreak that emerged since early 2020, which has led to increased business risks and market volatility.”
Read more: LendingClub “cautiously optimistic” for 2021