ThinCats increased its loan origination and turnover last year but widened its losses due to higher operating costs and investment into the business.
The alternative business lender posted turnover of £10.5m in the 12 months to 31 December 2020, a 46 per cent rise from £7.2m in 2019, according to its latest annual accounts filed with Companies House.
ThinCats delivered £289m in loans for small- and medium-sized enterprises (SMEs) last year, up from £200m in 2020 and £112m in 2018.
Loans under management increased by 50 per cent year-on-year to reach £461.7m in 2020.
However, ThinCats posted a pre-tax loss of £12.3m in 2020, an increase from a £9.4m loss in 2019.
A spokesperson said that as ThinCats has grown it has also seen a rise in operating costs, paired with increased investment into the business that led to last year’s widening losses.
“Despite the challenges of coronavirus, in 2020 we increased origination, turnover and our loanbook by more than 40 per cent and became profitable in the fourth quarter,” said ThinCats managing director Ravi Anand.
“As with any fast-growing company, we continue to invest in our people and technology to allow us to serve more businesses.
“We’ve carried this momentum through into 2021, surpassing £1bn in lending and securing significant investment from Wafra Capital Partners.
“Special thanks goes to our dedicated team and we look forward to working with our partners and helping more mid-sized businesses thrive.”
ThinCats has been busy delivering funds through state-backed lending schemes during the crisis including the coronavirus business interruption loan scheme and recovery loan scheme.
In its results, the lender said it is aware of the potential impact from Covid and Brexit, continues to monitor and manage risks but also believes that Brexit and the pandemic may result in an opportunity for alternative lenders if traditional lenders continue to retrench away from SME lending.
ThinCats’ accounts also showed the directors of the company took a pay cut with their aggregate remuneration dropping from £818,000 in 2019 to £767,000 last year.