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Property lending platform Wellesley has registered a loss of £520,000 for 2021 as it continues to wind down its regulated operations.
The business decided to restructure the company in September 2020 due to liquidity issues following the pandemic and a difficult regulatory environment.
Read more: Wellesley to become unregulated entity, as CVA voting begins
In 2021, the firm did not generate any income, while incurring administrative expenses of £520,000, mostly in relation to Financial Conduct Authority fees. This compares with £944,000 in income generated in 2020 and a £1.03m loss.
Read more: Wellesley widens losses as it winds down the business
In its latest set of accounts published on Companies House for the 12 months to the end of December 2021, Wellesley said it has cash reserves of £1.48m, which it expects will be enough to cover the cost of winding down. This is expected to be around £225,000.
Wellesley was launched in 2013 as a peer-to-peer lender and then moved into mini-bonds. It stopped accepting new money into its P2P product in 2017.
It asked creditors to approve a Company Voluntary Arrangement (CVA) in September 2020. At the time, it owed holders of its P2P loans, bonds and mini-bonds approximately £118m. The CVA was approved by more than 94 per cent of creditors. A CVA allows a proportion of debts to be paid back to creditors, however this means that investors receive a reduced amount of their money.
Read more: Wellesley creditors back CVA
The group confirmed once again that it will not be looking to raise retail funds. Previously Andrew Turnbull, co-founder of Wellesley, said the group plans to move to unregulated syndicated property lending with institutional funding.
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