Loanpad’s financial performance

Loanpad grew its profits again in the year ended 31 December 2023, according to the company’s most recent financial statements.

During the 12 months ended 31 December 2023, Loanpad’s net assets grew to £1,183,852, from £725,454 in 2022 with nearly £700,000 of cash. This accords with Loanpad being profitable on a monthly basis since mid-2021.

But what does this mean for Loanpad’s investors?

All limited companies are required to submit annual financial reports to Companies House, where they are published online and easily available to members of the public. This is where Loanpad’s annual financial statements can be found, along with other administrative information about the firm.

It is important to note that this information relates to the Loanpad business itself, not the company’s loanbook performance. For more information on the loanbook performance or the performance of individual loans, investors can visit www.loanpad.com.

However, many investors are interested to know how robust their chosen peer-to-peer lending platform might be. Reviewing a company’s financial records is a great way to learn more about the underlying health of a business, and its growth trajectory since inception. Of course, past performance is no indication of future success, so this information should be used as a research reference only.

What do Loanpad’s results say about the company?

Loanpad has been publishing its accounts on Companies House since 2016, so investors and other interested parties can parse multiple years of the firm’s finances if they so wish.

One line to look for is ‘net assets’, as this can give an indication as to the overall financial position of the firm.

Loanpad has been profitable on a cash basis every month since the middle of 2021. Furthermore, the company has been narrowing its accumulated loses year-on-year, and increasing its total equity.

However, for Neil Maurice, Chief Operating and Finance officer, the company’s most significant financial feat is the fact that it the majority of its revenue is recurring.

“We are particularly proud of the fact that our income and expenditure is highly predictable and stable,” says Maurice. “We run a very clean, robust business and we are very transparent when it comes to our balance sheet and operations.

“We have grown the business steadily into profitable territory, and we are proud to say that we have increased our profits year-on-year between 2022 and 2023.

“Loanpad’s business model is built on transparency, and we want our investors to be reassured that they are working with a robust company.”

A big feature of Loanpad’s business model is that its revenue is almost entirely recurring and based on a share of interest alongside investors. Loanpad’s revenue is very consistent month on month based on the size of the loan portfolio. This means that Loanpad is not reliant on writing new loans to generate revenue. For example, if there were another economic shock, such as during Covid, where economic activity is heavily curtailed, our revenue would barely change meaning there would be no pressure to reduce costs or write new loans.

Loanpad’s investors can earn daily interest of between 5.5% and 6.5% by backing short-term property loans alongside a suite of experienced property lenders which have been hand-picked by Loanpad’s team.

All of these loans are initially secured at a maximum of 50 percent of the property value. There are no fees for investors, so Loanpad makes its money by taking a portion of the interest earned on each loan. To date, no investor capital has been lost.