CrowdProperty saw its losses widen in the 12 months ending 31 March 2020, but the platform has been profitable since October 2019, the chief executive has revealed.
According to the property lender’s full year results for 2019/20, the platform made a loss of £206,892 over the course of the year – an increase on the £11,695 loss that was recorded for the 12 months ending 31 March 2019.
However, Mike Bristow (pictured), chief executive of CrowdProperty, pointed out that the “12 month aggregate view can often hide important directional patterns,” adding that “excluding growth investment, we have proven that the underlying operating business model is profitable through the subject period in aggregate.
“Accounts ending 31st March 2021 will show a profitable year,” Bristow added.
The full year results cover the period from the end of March 2019 to the end of March 2020. In April 2019, CrowdProperty closed a £1.1m equity capital fundraise which has “proven to be value generating,” the report states.
“The business has been profitable since October 2019, and cashflow positive throughout Covid-19 – proving the sustainability of the CrowdProperty operating model through any market, and the successfully invested equity capital injection,” Bristow wrote in the Companies House filing.
“The strength of the CrowdProperty proposition has been validated over the last 12 months through tough economic times as one of the few reliable development lenders throughout the Covid-19 pandemic, enabled by increasingly diverse sources of capital and a perfect lending track record since 2014.”
CrowdProperty said that it has now lent more than £120m, funded at least 1,200 new homes across the UK worth approximately £240m, and enabled over £80m of spend on labour materials and services in the UK economy.
The platform also confirmed that it has maintained a 100 per cent capital and interest payback track record since its launch in 2014, with average returns of seven to eight per cent.
Bristow added that the property platform is planning a number of “significant” product launches in 2021, as well as a “clear strategy which will enable us to reach £400m lending p.a. by 2024.”
“Our rigour, asset class expertise and track record is attracting more and more institutional sources of capital, which will be one driver of further lending capital growth (and providing the comfort for many investors that we’ve gone through months of institutional-grade due diligence numerous times), with those institutions only looking to work with proven, highest quality players,” Bristow added.
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