Abundance reports first ever profit

Ethical crowd bonds platform Abundance Investments recovered from the pandemic period to swing into profit last year.

The firm – which connects investors with renewable energy projects – posted a net profit of £33,000 in the 12 months to 31 December 2022, up from a £372,000 loss in 2021, according to documents filed with Companies House.

However, before tax, the firm reported a loss of £166,572, which was offset with an adjustment in a research and development tax credit that led to a £199,702 tax relief.

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Abundance co-founder and managing director Bruce Davis said that last year’s results were the platform’s first year to return a profit.
“We were pleased to steer the business to profit in 2022 which reflected the post-covid bounce back and maintaining a tight rein on costs,” he said. “The outlook remains challenging as a result of the impact of monetary and regulatory tightening, but the interest in investing for a greener, more sustainable future continues to grow.”

Meanwhile, revenue rose to £2.02m from £1.65m over the period, with Abundance noting that “activity levels increased with the wider recovery from the Covid-19 pandemic.”

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However, the annual results statement also revealed that Abundance expects to fall back into a loss in 2023, despite reducing costs significantly amid a challenging macroeconomic environment.

“On the reduced cost base the business is forecast to operate at a breakeven point for the coming couple of years before returning to growth,” Abundance said.

The highest paid director received £93,840 last year, which was flat on 2021.

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