Folk2Folk reduces trading losses

FOLK2FOLK reduced its trading loss for the 12 months to January 2019 but said it was still reliant on funds from its parent company.

The peer-to-peer rural business lending platform posted a trading loss of £535,136 for the year to 30 January 2019, according to its annual report filed with Companies House.

This was an improvement on a trading loss of £1.46m for 2018.

A note in the annual report said the platform was reliant on continued support from its parent company Folk Group Limited, and required future equity investment to fund anticipated losses and continue as a going concern.

It has received further equity investment since the end of January, Companies House documents show.

Folk2Folk’s chief executive Giles Cross resigned earlier this month after less than 18 months in the role.

Cross joined the firm as chief marketing officer in June 2017 and was promoted to chief executive in January 2018.

Folk2Folk said that he had stepped down “to pursue other opportunities”.

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Roy Warren, the company’s head of loans, risk and portfolio, has been appointed as interim managing director. Folk2Folk said he has significant experience in running and developing businesses in the financial services sector.

No information was disclosed regarding the process to find Cross’s permanent replacement.