Peer-to-peer property lender Relendex has raised £3m this year from private investors, Peer2Peer Finance News can exclusively reveal.
The lender will use the cash injection to support its growth in the UK.
“The company has successfully raised £3m in 2023 from private investors to ensure that it has the capital base to support its growing loan book,” a Relendex spokesperson said.
Last week, Relendex announced its third year of profitability, and executive chairman Paul Sonabend said that he hoped to pay shareholders their first dividend later this year.
Although the P2P lender did not disclose its total profit for the 12 months ending 31 January 2023, Sonabend confirmed that the company’s profits “exceeded” the £322,998 profit that was reported last year. Peer2Peer Finance News understands that 2022/23 profits were in the £300,000 to £400,000 range.
Sonabend also confirmed that Relendex increased its share capital by £3m during this calendar year, and now has “one of the strongest balance sheets in our sector.”
Read more: Relendex unveils funding partnership with Travis Perkins
According to the company’s financial results, by 31 January there was just over £4.8m in its share premium account, down from £8.39m the previous year.
On 7 October 2022, a special resolution was passed to reduce the company’s share premium account by £5.5m, “thereby increasing the company’s distributable reserves by an equivalent amount”.
Following this, 5,555,554 ordinary B shares were issued at £0.36 per share, raising approximately £2m.
Read more: Green evolution: Exclusive interview with Relendex’s Paul Sonabend
