SoMo reported an increase in income and turnover in its newest monetary yr, because it scales up its workforce to “lay the foundations for future progress”.
The bridging lender stated that pre-tax revenue elevated to £6.4m for the yr to 31 March 2022, up from £4.8m the earlier yr.
Turnover rose to £18.9m from £12.9m, in accordance with paperwork filed with Firms Home.
SoMo elevated its headcount to 53 in its 2021/2022 monetary yr, up from 39 beforehand. This included 10 new hires within the IT division. Employees pay rose to £2.57m from £1.75m in consequence.
Learn extra: Bridging the hole: Unique interview with SoMo’s Simon Cottrell
“The corporate has achieved year-on-year will increase in turnover and funds lent since inception,” SoMo stated in its strategic report.
“Headcount has elevated considerably as we lay the foundations for future progress.”
95 per cent of SoMo’s mortgage guide is secured bridging finance – funded by traders and lenders – and the opposite 5 per cent includes shopper credit score loans, that are funded by inside capital and reserves.
Bridging loans made up £15.3m of revenues within the yr to 31 March 2022, with the guide standing at £64m at year-end.
This compares to £3.6m of revenues from its shopper credit score guide, which stood at £3.2m.
SoMo highlighted the truth that bridging finance is “naturally uncovered to volatilities within the property market” as a principal threat and uncertainty however famous that “lending is brief time period and threat is managed with cautious loan-to-value lending standards”.
It stated that its shopper credit score lending relies on affordability.
Trying forward, SoMo is seeking to broaden each components of the enterprise.
“Expertise continues to be on the coronary heart of the enterprise and an in-house workforce has developed innovative applied sciences to ship monetary fee and mortgage providers,” the agency stated.
“Modern options are enhancing and increasing each the core bridging platform and shopper credit score know-how and it will proceed to be a spotlight.”
Final December, SoMo introduced that 2022 was its most profitable yr up to now. It stated on the time that it was planning to launch a private and enterprise insolvency and chapter product this yr, which shall be serviced by in-house insolvency specialists.
Since then, it has introduced a variety of record-breaking months in 2023, boosted by origination-focused promotions.
Learn extra: Somo stories finest month ever in February
