PRESS RELEASE – Ablrate’s profitable year triggers fund raise. 24/01/2019
Henley-on-Thames, 24th January 2019 – Ablrate has been one of the platforms that has punched above its weight in the crowded P2P lending market. Surprisingly, the company has also been absent from the fund-raising scene for 4 years.
CEO David Bradley-Ward explains “We started the business with funds from myself and my business partner followed by a small SEIS raise of £150,000 and then an EIS raise of £150,000 shortly after. We also raised debt of £400,000 of which £250,000 remains outstanding. So far this has been enough for us to achieve our goals”.
The company has grown rapidly (a turnover increase of over 150%+ per annum) from a relatively small amount of investment, so why raise funds now? Bradley-Ward continues “From the beginning we have aimed to provide fair returns for the risk being taken by our lenders. That should be no different for our shareholders. We have seen many companies of an equivalent size, or smaller than us, raising millions at large valuations before they have even proven they can make sustainable revenues, that would be against our very ethos. When you throw in that our revenue is higher and we are profitable, we decided it was time to open up our shares to the public to join us on the next phase of our journey.”
Initial shareholders in Ablrate have seen revenues grow from £100,000 three years ago to £1.7 million now and Bradley-Ward believes that there is much more growth to come.
“In the last 4 years we have created and provide value for shareholders. From the £650,000 of debt and equity we have generated £3.1 million or £4.76 per pound invested from a standing start and £1.7 million of that was last year. Subject to defaults and the loans going to term, we also have £1.4 million of long tail revenue from loan trailing fees paying over the next three year, before we do another penny of business. That is real value to existing and new shareholders and shows a hockey stick trend, which all tech investors are looking for. We are now ready to scale the business from a profitable stable base.”
The company aims to utilise funds from this raise to launch the new broker platform, developed by the business. Alex Benger, Director of Business Development explains “We have been working with our IT team to add a platform to Ablrate that can be used by brokers, both in-house and external, to manage their deal flow on Ablrate, along with their commissions and fees, borrower clients and deal messaging document coordination”
Ablrate’s brokers and third-party partners can submit and manage deals while at central office the senior credit team can manage and monitor the credit process to the final approval of the deal, basically it makes Ablrate, not just a p2p lending platform but an integrated deal financing platform for the alternative finance industry.
This platform is intended to be the roll out platform a network of regional in-house brokers and broker partners which, Ablrate believes, will increase origination in line with their targets.
The company is in a private raise round on Crowdcube and has raised £100,000 of the £350,000 total
Ablrate is a p2p lending platform where lenders are brought together with borrowers to fund asset backed transactions in secured loans. Found by a team of industry experts in aircraft, leasing and finance the company launched in beta in 2014, launched its new platform in 2015 and has filled £44 million in loans during this period with £33 million traded on its secondary market. Capital is at risk.