Blog: Abundance blames Brexit for lower revenues and larger losses in 2019 – P2P Finance News

Crowd bonds platform Abundance Investment saw its revenues decline and its losses widen last year, which it attributed to Brexit-linked uncertainty.

The firm, which offers ethical investment opportunities, reported revenue of £1.84m for the year to 31 December 2019, down from £2.11m the previous year.

Its loss for the year widened to £965,896 from £534,736 over the same period, according to the document filed with Companies House.

Abundance said the fall in income was primarily due to market uncertainty linked to Brexit.

Read more: Abundance launches first ‘build back better’ investment since lockdown

“This uncertainty acted as a drag on decision making within the firm’s deal pipeline,” said the report.

Read more: UK Crowdfunding Association: Sector can play “key role” in economic recovery

Bruce Davis, co-founder and managing director, told Peer2Peer Finance News that Abundance raised capital last year to invest in marketing and to grow the business.

“The underlying revenues of the business are strong, but this helps build upon that,” he said.

Read more: Abundance develops green investment product with local authorities

Looking ahead, Abundance expects to incur losses over the coming years as the business continues to invest ahead of income.

“The firm is planning less investment in 2020 in order to control overall losses, however the firm may continue to make targeted investments to ensure it continues to build a long-term competitive advantage within the market,” said the report.

Abundance also noted that the Covid-19 crisis has increased risk and is making financial planning difficult so the firm is taking a conservative approach to managing this risk by reducing all discretionary spend and overheads where possible.

Read more: Warrington Borough Council mulls community bond via Abundance

This year, the platform is planning to expand its product offering into community municipal investments, which enable residents to invest in their council and support the delivery of its strategic goals.

These include reaching net zero carbon emissions in line with, or ahead of, the UK government’s legislated target of 2050.

“We’re excited about the potential of community municipal investments, the first of which we’ll be launching soon,” Davis said.

“We invested in the growth of the business last year and we look to capitalise on that over the coming year with these new products.”

Abundance intends to fund its future growth through its own means and by raising further equity when needed, the report said.

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