Cornwall-based finance company FOLK2FOLK reported profit of £ 943,000 for the first half of 2021 and said it was on track to double profits this year.
The Launceston-based market lender for UK SMEs delivered just short of the company’s fiscal 2020 profit from February through July and said it was an example of its “impressive growth.”
The company first profitability achieved under the leadership of current Managing Director Roy Warren in 2019, making a profit of £ 198,000 which rose to £ 1.1million a year later during the 2020 pandemic.
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Despite the coronavirus, FOLK2FOLK’s strong performance enabled the company to recently pay its first dividend to shareholders.
FOLK2FOLK said she and her investors are helping to create “a level playing field across the UK” by providing access to finance for businesses in the regions. Over £ 460million has now been loaned to SMEs across Britain, with no capital loss for investors to date.
Mr Warren said: “We have had a great year so far, with the first half of the year generating close to last year’s profit. A strong summer largely contributed to these results. Traditionally, summer has been notoriously underperforming, but we’ve had a terrific few months helping many businesses get the funds they need, and August is set to be our second biggest month of 2021 with around £ 12million worth of money. ready.
“We have loaned over £ 460million across Britain, quickly approaching half a billion in loans, allowing hundreds of business owners to continue their plans for growth and diversification as the country emerging from pandemic and Brexit. Looking at our pipeline during the winter months, I have no doubts that we will be helping even more companies that continue our current growth path.
FOLK2FOLK is now on track for a third consecutive year of profits after suffering a loss of £ 535,000 in 2018. The company attributes the success to investors who want to take advantage of the generous returns it offers and help them companies that operate in rural areas. outside the big cities.
The company’s mission is to support these small businesses, but has expanded from its original mission of financing farms to now encompass a range of businesses from data centers to wineries.
FOLK2FOLK injected around £ 60million into SMEs in 2020, enabling hundreds of small businesses in various industries to grow, diversify or adapt to the new Covid-19 environment.
FOLK2FOLK was established in Cornwall in 2012 and occupies ‘a unique space’ in the alternative finance industry due to its focus on often overlooked businesses in rural and regional parts of Britain.
The business was created because of a problem seen in the Launceston area and is based on the traditional Cornish values of ‘good people helping other good people’.
After realizing that the challenges in Cornwall were the same for other rural areas of the country, he led the company to diversify nationally.
It now aims to help businesses located outside of city centers to ‘take it to the next level’ in terms of access to finance and the opportunity to invest in themselves, especially if they have been turned down by lenders. high street.
Business Live’s Southwestern business reporter is William Telford. William has over a decade of experience reporting on the business scene in Plymouth and the South West. It is based in Plymouth but covers the entire region.
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FOLK2FOLK is also an investment platform, helping savings people have a secure investment alternative to bank savings and stock market turmoil. Its investors have collectively earned tens of millions of pounds in interest. FOLK2FOLK pointed out that all of their investments are secured by land or property and no one has lost capital to date.
He said a “happy by-product” of his loans is a flow of benefits to the wider community and includes job creation, strengthening supply chains and the continued movement of money. through savings. He said he coined the term “folkonomy” to describe this human impact of finance. FOLK2FOLK also announced, in 2021, new additions to its brokerage team, a £ 400million lending milestone and strong adoption of its Innovative Finance ISA (IFISA).