CrowdProperty moved into profit in its latest annual results, which it deemed “another step towards a much larger lending business vision”.
The peer-to-peer property development lending platform posted a £635,617 profit in the year to 31 March 2021, according to documents filed with Companies House.
This compared to a loss of £206,892 the previous year, although the company has been profitable on a monthly basis since October 2019.
“These results prove the effective investment of the April 2019 equity capital fundraise (£1.1m) and another step towards a much larger lending business vision – a proposition for which we have proven demand for and has huge upside in a large, relatively fragmented market with ongoing customer pains,” the annual accounts said.
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However, CrowdProperty said that the company will show a loss in the next financial year due to significant investment into its technology, team capacity and brand awareness to ensure ongoing growth momentum in the coming years.
“Whilst we have an absolute focus on the asset class we have deep expertise in to continue building a world class property development lender, we are looking to deepen our competitive advantage and bring a progressively more valuable proposition to both sides of the marketplace with a number of significant product launches planned for 2022 alongside a clear strategy which will enable us to reach £500m lending per annum by 2025,” the firm said.
CrowdProperty has lent £175m since inception and repaid over £100m to investors with an average return of 8.31 per cent, according to its latest accounts.