Octopus Choice posts profit as it prepares for liquidation in 2023
Octopus Choice has registered a pre-tax profit of £1m in the year to 30 April 2022 as the platform prepares for liquidation in the new year.
The property-backed peer-to-peer lending platform, which announced in February 2021 that it was closing down, saw a 195 per cent increase in turnover to £969,015 over the period, helping to take it back in the black after a loss of £255,379 in the 12 months to 30 April 2021.
The return to profitability was attributed to several significant loan exit fees being received by the company in the process of winding down operations as more loans were redeemed from the Choice platform.
Over the period, assets under management declined from £93.8m to £7.3m.
Read more: P2P platform closure pushes Octopus Choice into the red
Back in March 2020, Octopus Choice paused all transactions in its platform citing extreme market conditions.
According to its latest set of accounts filed with Companies House, Octopus Choice closed with investors receiving their capital and interest, net of impairment losses, in May.
This followed a purchase agreement with Octopus Administrative Services Financial, fellow group company, to buy the remaining loan parts held on the Octopus Choice platform for £5.7m net consideration.
As a result, the directors are aiming to liquidate the company in 2023.
Read more: 50pc of the Octopus Choice portfolio has already been realised
