Luxury asset lender Borro has posted an operating profit of £1m for last year following its entry into the property market in August 2015.
Despite reporting an operating loss of £7m in 2014, the firm said it was now on track to deliver over £5m in operating profit for 2016.
After accounting for loan funding costs, Borro did report a loss of £2.7m for 2015, up from a £9.8m loss in the previous year.
The firm predicts a small profit after loan funding costs in 2016, and expects to achieve gains of £3-4m in 2017.
This news comes just days ahead of Borro’s launch into the regulated bridging and consumer buy-to-let loans market.
Paul Aitken, founder and CEO of Borro, said: “2015 was a pivotal year for Borro.
“Our terrific team has perfected the model allowing us to dramatically improve our financials.
“Larger loans from valued partners, such as auction houses, brokers and private banks, are growing our top and bottom lines.”
Borro experienced a 50% rise in business generated through its partner channels during 2015.
Customer loyalty also grew, with 70% of revenue coming from existing clients.
Meanwhile, the firm saw its interest and fee revenue increase 16% to £10.6m, and predicts further growth of 30% during 2016.
“We have demonstrated that our business is fundamentally profitable,” Paul added.
“This has put us in a position where we are confident that we will secure significantly lower loan funding costs, which will have an immediate and positive impact on the business in 2017.”
Earlier this year, Borro upgraded its membership to become a full member of the Association of Short Term Lenders.