Growth Street losses increase amid turbulent year

The alternative lender reported losses of almost £2m following restructuring, redundancies and the loss of its CEO.

Alternative lender Growth Street saw financial losses deepen during 2019 to £1.86m, according to filings posted on Companies House on Wednesday.

In 2019 the peer-to-peer lender had a profit and loss reserve of £4.68m up from £2.81m the previous year, suggesting a loss of £1.86m in the year ending 31 December 2019, compared to £1m the previous year.

London-based Growth street had a rocky 2019 and start to 2020.

Almost two months ago, Growth Street initiated ‘a liquidity event’ and closed investor access to its platform in a bid to stabilise its operations amid the coronavirus pandemic.

At the beginning of December 2019, Growth Street’s CEO Greg Carter stood down from his role, although the company declined to reveal why. 

The month previous, Growth Street had made between 50 - 70 staff redundant after it axed its "hybrid" business model and shifted to a digital-focused approach.

Before the job cuts, Growth Street contacted its lenders to tell them that two loans, valued at more than £1m, had defaulted.

The peer-to-peer lender said it told investors the cost of the two defaults would be registered on the company's balance sheet—perhaps the £1.86m loss made in 2019.