Cornwall-based lender FOLK2FOLK forecast profits of nearly £2m

Cornwall-based business lender FOLK2FOLK says it is on track to double its profits to around £2million.

The company, which specializes in lending to UK regional SMEs, expects, subject to audit, a pre-tax profit of £1.98m in 2021. This will be FOLK2FOLK’s biggest annual profit to date and will mark three consecutive years of profit for the company.

In addition, FOLK2FOLK has achieved several significant growth metrics in 2021, including returning to its pre-2020 record of double-digit loan book growth, expanding into Northern Ireland, and securing a £7 million investment from British Business Investments.

In 2021, Launceston-based FOLK2FOLK lent a record £108 million to businesses in Cornwall, Devon and other parts of the UK, taking its total lending to over half a billion pounds. Roy Warren, Managing Director of FOLK2FOLK, said: “I’m proud that in 2021 we delivered on what we said we were going to and are financially strong.

“But we’re not stopping there, we have ambitious growth plans for this year that are already advancing at a solid pace. We see huge opportunities to underwrite massive volumes of loans across the UK, and institutional investing is a key part of our strategy to support this.

“We also expect the alternative finance market to continue to consolidate and provide us with an opportunity to acquire loan portfolios from other platforms. We view this as a growth area for us and are actively seeking in the market to move forward.

“We have to anticipate that 2022 is likely to be a difficult year for everyone, against the backdrop of inflation, rising interest rates and hostilities in Eastern Europe, all of which fuel an uncertain external environment.

“This makes it all the more important to have a strong and solid foundation for any business. With only a small handful of lending platforms making a profit, our high profit levels are testament to the stability of FOLK2FOLK in terms of finances, levels of activity and governance, and we know this builds investor and borrower confidence in us”.

In December 2021, FOLK2FOLK received its £7 million investment from the commercial arm of the British Business Bank. The market lender received the commitment from British Business Investments (BBI), a wholly owned trading subsidiary of British Business Bank Group, the UK government’s economic development bank.

In September 2021 FOLK2FOLK announced a profit of £943,000 for the first half of 2021 and said it was on track for a third consecutive year of profit after suffering a loss of £535,000 in 2018.

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