Landbay Partners raised £50k on Crowdcube many moons ago and then raised £1.6m on Seedrs in March of this year. Their accounts for YE Dec17 show some slippage on their Seedrs numbers.
Revenues for the year were supposed to be £1.194m but came in at £994k. The GPM took a bit of a hammering falling from the projected 37% to 25%. The projected loss for the year was £2.3m but came in at £2m due to reduced costs. Given that these numbers were, in March 2018, historic the variations are a surprise.
When you are pushing for market share in an increasingly bloated space and have to reduce spending, that is not a great plan. Time will tell.
Hi Rob,
ReplyDeleteHaving studied it closely, I would argue that the Buy2Let lending market is not bloated, actually the inverse. New lending legislation has meant that the highstreet banks and buildings societies are withdrawing from the market. The specialist lenders like Landbay are left with the spoils. Take a look at the performance of public B2L lender Paragon Banking Group PLC as an example.
Landbay have been scaling rapidly this year with impressive MOM lending growth. Profitability is reported to be just months away.
I enjoy your reporting.
With Landbay, the 12 months 2017-2018 accounts capture an inflection point, 2018-2019 will be a breakout year... perhaps reaching escape velocity.
Watch this space
From a passionate Seedrs and (clearly biased) Landbay investor
I can wish you the best of luck.
Delete