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.
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.
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.