Not really. The company lost >£150k (large negative retained earnings decreased by a further £150k) and there's a going concern statement. Unless stakeholders are willing to keep throwing money at it or they turn a profit...
Going concern statement is standard on accounts - clearly more cash has been pumped in, so while the company may not be longer-term successful, the Nov-19 position looks to be stronger than the Nov-18 position, with much more free cash. Be interesting to see the Nov-20 set!
Going concern statement is standard on accounts - clearly more cash has been pumped in, so while the company may not be longer-term successful
That's the point I was making! Paraphrasing the going concern statement a bit more bluntly, "Our company has lost £1.5 million since inception (increase on last year) but we're not going to cut our loses and run within the next 12 months" (that period ended 30/11/2020, 6 weeks ago). It's a question of how much do you think the stakeholders are prepared to lose as to how safe your investment is.
They need more sales, its as simple as that. I would have thought that this recession would have helped but it appears not. As in no big increase in sales. On the other hand would platform failure be catastrophic? Would we face large losses and have to wait forever to get are capital back? That would appear to be unlikely.
I'm an equity investor in AxiaFunder and a minor equity investor in Brickowner, Crowdstacker, Proplend, ABLrate, CrowdProperty, Assetz Capital, Elfin Market, Qardus, Loanpad & Shojin (and regrettably Fund Ourselves). This time next year I'll be a miwionaire Rodders!
A long gap between the year end date and the filing of the accounts at Companies House (11+ months here) is typically not a good omen from my perspective.
If this long gap is due to the (long) time taken to finalise and approve the accounts, then this tardiness does not reflect well, especially for a company dealing with other people's funds.
If the accounts were ready, but deliberately withheld from filing until the latest deadline date mandated by CH (I have known this to happen often with some other companies) then this makes me wonder as to whether the directors have some bad news they are trying to hide/delay disclosing to the public as much as they can.
Here the accounts were 'approved' and 'authorised for issue by the directors on 15 October 2020' i.e. 10.5 months after the year end date and then filed at CH on 11 Nov 2020.
If a mega FTSE 100 company like Barclays Bank (with a significantly more complex structure and diverse range of transactions) can file its audited accounts for ye 31 Dec 2019 with CH on 12 May 2020, i.e. within 4.5 months, then I expect a relatively smaller and 'simpler' financial organisation to do better than 11+ months.
Also, expect a company dealing with other people's funds to have their accounts audited (even if not required by law) as a matter of good practise and for building confidence. As noted by iRobot , the accounts here are unaudited.
Another red flag for me is when a company shortens its reporting date by a day to gain an extension; perhaps to suppress bad news or to accommodate shoddy internal processes around accounting / bookkeeping. (Could also be for completely innocent reasons, of course, but the larger the organisation, the less convincing those 'innocent reasons' are.)
UNB (OAF Ltd) do have history in this area: 30 Aug 2016 Previous accounting period shortened from 30 November 2015 to 29 November 2015 (Reporting date would have been 30 August 2016) 25 Aug 2017 Previous accounting period shortened from 29 November 2016 to 28 November 2016 (Reporting date would have been 29 August 2017)
Again, no direct comment intended re: UNB (OAF Ltd), just an observation on things I used to look out for when undertaking DD on prospective borrowers - especially Borrowers / Developers who were lining up a large loan and 'mysteriously' submitted an amendment to their reporting date, resulting in their latest accounts (usually so brief as to be next to useless anyway) being unavailable before the loan drew down...
Last Edit: Dec 23, 2020 15:42:54 GMT by iRobot: two p's in sapphire!
"The risk of financial loss when investing in p2p loans is real, and relying on info posted on a chat forum to make decisions on investments is crazy." [source]
In case anybody's interested there are a new set of accounts showing results up to November 2020.
To my inexpert eye, it looks like the losses have continued at roughly the same rate as last year (about £170k), based on looking at the change in retained earnings. No new shareholder capital if I read it correctly. There's also a brief reference to the court case right at the end of the document, which understandably doesn't give anything away.