Cornwall-based peer-to-peer lending platform Folk2Folk has reported a slight decrease in profits despite hitting a "record" turnover for the year. The Launceston-headquartered lender posted revenues of £5.28m for the year ended January 31, 2024.
The company, which also has an office in Cheltenham in Gloucestershire, saw profit before tax fall to £1.28m from £1.37m the year before. But it said the dip was due to "ongoing tech investment".
The business paid out its third shareholder dividend.
Roy Warren, managing director of Folk2Folk, said: “I am delighted to announce another successful year for Folk2Folk, marked by our highest ever turnover and substantial interest payments to our investors. This reflects the trust and confidence that businesses and investors have placed in Folk2Folk.
“Maintaining a profitable platform is crucial for the confidence of our investors and the health of the wider P2P sector. Our strong performance is testament to the strength of our business model, the loyalty of our investors, and the dedication of our team.”
Folk2Folk helps business owners across the Ƶ access finance while providing fixed-rate, property-backed returns to retail and institutional investors. Since 2013, the company has facilitated more than £690m in business loans.
Mr Warren said the company's financial support had helped create jobs, strengthened supply chains, enabled property developments, and funded new local attractions.
"Folk2Folk has continued to support regional Ƶ economies by providing essential funding to small businesses, enabling them to start, grow, or diversify," he added.
Fok2Folk is a delivery partner of British Business Investments, a commercial subsidiary of the Government-backed British Business Bank, whose remit is to improve access to alternative finance for smaller businesses across the Ƶ.
