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CEO update on EY Audited accounts filed for 2018/2019 and engagement with MHA Macintyre Hudson

CEO update on the Audited Accounts filed at Companies House for the period 2018/2019 filed by Ernst & Young in February 2021.

 
 
Kuflink Ltd (Peer to Peer Platform) Audited Accounts filed at companies house:

1) Leigh Carr Filed Audited Accounts made up to 30 June 2017; 
2) Ernst & Young filed Audited Accounts made up to 30 June 2018; 
3) Ernst & Young filed Audited Accounts made up to 30 June 2019; and
4) MHA Macintyre Hudson have nearly completed Auditing accounts for the period ending 30 June 2020.


I wanted to get an update out to you all to address the latest Audited Accounts that have been published at Companies House which was for the period ending 30 June 2019 (prior pandemic) filed by Ernst & Young in February 2021.
 
The board made a decision as of 01 September 2020 to engage with new auditors who are MHA Macintyre Hudson (Top 15 - click here for source).  The FCA register was updated on 01 September 2020. The 2019/2020 accounts are being worked on and we are confident these will be filed soon.  
 
We have been working through all the points highlighted by Ernst & Young during the 2019 audit. There is no suggestion of any wrongdoings by the firm.  I can confidently say that we have tackled the majority of them already throughout the pandemic and are currently working through the remaining with Macintyre Hudson. I would also like to note that none of the issues has or would have compromised any investor funds
 
In respect of VAT, we have been in contact with HMRC since September last year, as the pandemic created delays in an earlier contact. The VAT amount has already been set aside (which is c£160k) by the business and we are working with our new auditors to settle by the June 2021 deadline required by HMRC. 
 
With regards to the Material Uncertainty in relation to the Going Concern, we have managed to cut significant costs within the business which has enabled the group to move to a self-sustainable model meaning profits are being generated on a monthly basis and we envisage this to be the case for the foreseeable future.  In addition, we are in contact with our major shareholders if and when equity injection is needed.
 
Just to clarify our Wind Down process: If you hold money in a wallet that is in your personal name, this will continue to be held in a separate Client Money Account so it can be returned to you even if the Wind-down process was activated. The security provided by our borrowers is not held directly by the platform but by a separate company called Kuflink Security Trustees Ltd, this is an asset holding company only and does not trade. Please note, Kuflink’s stake will be the last amount that is paid during this process.

The 'Wind Down Plan' ('WDP')would be managed in-house by existing staff, systems and with the same regulatory rules and requirements that the platform currently operates within. This would allow Kuflink to use its products and platform expertise to maintain the quality of the execution of the plan, minimising risks that would arise if we were to transfer operations to a third-party provider, and maximising outcomes for our customers. This WDP is designed for Kuflink to continue for two years to wind down the book to zero. All expenses have been predicted and these funds have been put aside in a segregated bank account.

Kuflink constantly works with the FCA and monitors the WDP as the business evolves to ensure the amount put aside is sufficient to cover a sensible wind-down of the business.

For 2021, the business is in very good shape.  Losses have narrowed for Kuflink Group Plc to a point where we are confident that we are likely to announce break-even or a profit very soon. Please see the table below
table2 (4)


During the pandemic alone we have repaid over £30m of capital and interest to our investors and in total, over £77m has been repaid and we continue to repay capital and interest on an ongoing basis. No investors had lost money with Kuflink to date.

We wholeheartedly intend to keep investing in our team and infrastructure with a confident view of furthering Kuflink’s purpose of ‘Connecting People to Financial Freedom’.
If you have any questions, the team and I are here for you so please do not hesitate to contact us on 01474 334 488, on live chat or email us at Hello@kuflink.com.
 
Narinder Khattoare
CEO

*Capital is at risk and Kuflink is not protected by the FSCS. Past returns should not be used as a guide to future performance. Securing investments against UK property does not guarantee that your investments will be repaid and returns may be delayed.  Tax rules apply to IF ISAs and SIPPs and may be subject to change.  Kuflink does not offer any financial or tax advice in relation to the investment opportunities that it promotes.  

** Draft Accounts & Management Accounts may change.
Kuflink Ltd is authorised and regulated by the Financial Conduct Authority (FCA) (Registration Number 724890). Kuflink Ltd has its registered office at 21 West Street, Gravesend, Kent, DA11 0BF.