Kuflink reports record 2023 profits
Kuflink made a record profit of more than £1.8m in the 12 months ending 30 June 2023, its highest annual profit to date.
This is more than double the £729,122 profit for the previous year.
The peer-to-peer lending platform expects to exceed this figure in the year ahead, as the company gears up for a rebrand and the ongoing expansion of the business.
Revenue was approximately £15m for the year, while the gross loan book increased by 25 per cent to £115m during the year up to 30 June 2023.
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In July 2023, Kuflink secured a £35m revolving credit facility with Paragon Bank, which will aid in the growth of the company’s loan book this year.
“We plan to surpass these figures next year,” Narinder Khattoare (pictured), chief executive of Kuflink, told Alternative Credit Investor.
“Equity levels are up, and we’ve increased our headcount across underwriting in particular and in tech.
“The 2024 figures will have the Paragon element in there too. We’ve almost deployed the first part of the Paragon facility already which then triggers the accordion if we want to draw down more funds.”
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Khattoare said that the platform’s financials would have been even better last year if it wasn’t for the rising base rate and the aftershocks of Liz Truss’s mini-budget in October 2022.
Despite economic instability, Kuflink maintained a low level of credit impairments last year, with just £8,417 written off, representing 0.77 per cent of the overall loan book.
Khattoare told Alternative Credit Investor that he hopes to see a reduction in the base rate at some point in 2024. He plans to continue Kuflink’s growth by launching new products and services in the coming months.
“This is the year of growth,” he said. “Especially if you have funding in place, it could be a really good year.
“Our rebrand should be done by the end of the month, and we are working on a product or two that will come onto the platform as well, including a different types of asset class and a loan investment forum for lenders.”
Khattoare said he is also mulling a secured business loan product, and will announce a number of new platform features within the first quarter of 2024.
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