Environmental

Environmental

Our environmental indicator relates to areas of our performance that have an environmental impact.
 ESGESG ImpactWhat we’re doing
1Reduce paperLowWe have made tremendous leaps into moving into the cloud and minimising the need for paper in the office. Being a FinTech business we feel it is achievable to go fully paperless within the year.
2Cycle-to-work ProgramsMedium We have set this offering up for our employees and hope to see people take this up soon.
3Energy Efficient OfficesHighOur current office premises has an EPC rating of C. Within the next two-year we will be moving to new purpose-built energy-efficient premises. We have let all staff know they can apply through the Kent website for solar panels to help with their own energy efficiency at home
4Development Loans - Element of Green - solar, car chargersHighWe work with many different property developers who work on anything from refurbishments to brand new housing estates, we will shortly be publishing how green some of these are, watch this space!
5Electric Charger at the Office and BCP AddressHigh We have Electric charging points both at the Head Office premises and also at our Business Continuity Site (from August 2021).
6We expect to achieve Net Zero carbon emissions by 2030HighMigrate remaining systems to the Cloud, fund green innovation, fund green innovation in property developments, give clients better information when they make decisions, Build carbon-free head office and use AI technologies to enhance our algorithms and effect efficiencies.

EPC for Kuflink’s Head Quarters

 Total Floor AreaEPC RatingLink
1102 Square MetresC (Target B by 2030) Energy performance certificate EPC Find an energy certificate GOV.UK
2403 Square MetresC (Target B by 2030)Energy performance certificate EPC Find an energy certificate GOV.UK

Social

Our social indicator relates to areas of our performance in respect of our management of relationships with employees, suppliers, customers and the communities within which we operate.
 ESG ESG ImpactWhat we’re doing
1Vulnerable customersMediumWe are continually working to ensure we incorporate vulnerability considerations into the way we do business be that by tailoring our communications with people, making our products easy to understand and having dedicated people for our customers to talk to.
2Employee training LowWe train all our staff to ensure they can deliver the best possible service to our customers, we equip them with the knowledge they need to effectively carry out their roles and we ensure they undertake all the relevant training in order for us to remain compliant in all we do.
3Develop Socially responsible productsHighWe work with many different property developers who work on anything from refurbishments to brand new housing estates, we will shortly be publishing how green some of these are, watch this space!
4Health and wellbeing of colleaguesMediumIt’s no secret that a healthy workforce is a more productive workforce, we ensure we regularly ask our people what they want from the business and how we can improve. We want to ensure they are happy in their environment and we want people to want to be here with us.
5Financial Wellbeing of colleaguesMediumWe encourage people to undertake qualifications that will help them in their role and we fund this to help them and us. We also do financial educational training.
6Adaptation to ways of working due to the pandemicMedium We have adopted a flexible working environment as we appreciate that no two people are the same. We let our team work from home one day a week if they choose to and they can change their working hours if they need to.
7Access to skillsMediumWe have a lot of experts in their fields within the business who are able to offer training and we have regular training sessions for all compliance topics.
We encourage people to continually learn and so should there be specific courses they want to do, we will look at it for them.
8Charity and Community SupportMedium 1. We currently sponsor Kuflink Stadium - Ebbsfleet United Football club and have done for many years now
2. We have four staff members who act as Trustees on The Kuflink Foundation, whose objectives are to support community-focused projects for the youth, the advancement of education, the advancement of amateur sport, the advancement of health or the saving of lives. In 2022 our team are looking to get more involved in the community to help children and young adults in Kent.
3. Sponsor Guru Nanak Football club for kids
4. One of our directors sponsors a local football team - Northfleet Eagles Under 10.
5. We have people who volunteer in the local community by picking up and dropping off clothing to homeless charities.
6. We have people who worked on "Christmas in a box" whereby items were collected and then sorted and delivered to those in need.
7. Some of our team individually give money to their chosen charities and undertake sponsored events to raise money and we also have a first responder who is able to pick up and deliver medicines if required.
8. Some of our directors have housed a family from Ukraine.
9. We have a team member who has been a blood donor for the last 30 years and who is registered with DKMS as a donor for blood stem cells for bone marrow and blood cancer.
10. We have a staff member who is on the Board of The Grand a youth and public health CIC (community interest company) and Age UK Northwest Kent looking after the interest of the elderly in the wider North Kent area.
11. In March 2022 two of Kuflink's staff members visited a local school's "Careers" day. We provided the pupils with an insight into the business and investing world, which so many were keen to learn and understand.
9Modern Slavery StatementMediumVoluntary slavery and human trafficking statement
Voluntarily Implemented 23/06/2022
10Code Of Ethics (Adopted 30/01/2022)
Medium 1. You must comply with this Code and all relevant laws and regulations. 2. You must act with the highest ethical standards and integrity. 3. You must act in the best interests of each client. 4. You must provide a high standard of service. 5. You must treat people fairly regardless of: a. Age b. Disability c. Gender Reassignment d. Marriage and Civil partnership e. Pregnancy and Maternity f. Race g. Religion and Belief h. Sex i. Sexual orientation

11Financial Conduct Authority Principles
Medium 1 Integrity 2 Skill, care and diligence 3 Management and control 4 Financial prudence 5 Market conduct 6 Customers' interests 7 Communications with clients 8 Conflicts of interest 9 Customers: relationships of trust 10 Clients' assets 11 Relations with regulators
12Employee satisfaction index
MediumEmployee satisfaction index measures the extent to which employees report that they are happy working at Kuflink.
95% (From Employee Engagement Survey: 1st February 2022)

Density of Offices

 Density of Offices Formula
11 person to every 170 square feet(5,435.77 square feet (total floor area) / 32 employees)

Ethnicity for Board

Diversity - Gender for Board

Ethnicity for Workplace

Diversity - Gender for Workplace

Governance

Our governance indicator relates to areas of performance that support good governance practices and facilitate Kuflink Group being considered a responsible business. Governance for climate-related risk will be embedded into the Group’s existing governance structure and is complementary to the governance of the Group’s sustainability strategy.

1. Purpose 2. Strategy 3. Accountability informing Risk 4. Ethical behaviour
 ESGESG ImpactEase of
Implementation
Internal /
External
DATELink
1Improve Board DiversityLowHighInternal
2Tax transparencyLowLowExternalPlease see below in Profit &
Loss.

Governance - Committees

 ESGESG ImpactEase of
Implementat
ion
Internal /
External
Formation Date Implemented
1Technology CommitteeLowLowInternalMarch 2018The Technology Committee focuses primarily on
the Company’s IT, digital and cyber strategies and
their implementation plans and strategic
technology opportunities for the Group.
2Compliance / CASS committeeLowLowInternalJuly 2019 Regulatory reporting, maintaining risk
assessments, Operational resilience/business
impact analysis, Security forum, Environmental,
Social and Governance performance,
implementing measures for consumer duty, Client
money controls and MLRO reporting
3Remuneration committee LowLowInternalJuly 2019To ensure remuneration is aligned to the business
strategy and regulatory expectation and to
oversee any major changes to the structure
4Nomination committeeLowLowInternalJuly 2019To review the structure, size, and composition of
the Board, give consideration to the leadership
needs of the Group and review and control related
party transactions
5Audit & RISK committeeLowLowInternalJuly 2019To review and monitor the effectiveness of the
Group’s risk management, capital management
and internal controls frameworks
6Asset & Liability committee
(ALCO)
LowLowInternalJuly 2019To Discuss management and monitoring of Debt
Collections.
7Executive committee (EXCO)LowLowInternalJuly 2019To discuss the overall business Objectives, Key
Performance Indicators (KPIs) and Strategy.
8Wind Down planning committeeLowLowInternalMay 2020 To monitor Kuflink Well-being metrics within the
business
9Property Developments
committee
LowLowInternalJuly 2021 To monitor and discuss all development funding
projects ensuring they are managed effectively
through to completion

Governance - Independent Forums

 ESGESG ImpactEase of
Implementation
Internal / ExternalLinkAwards / Ratings
1P2PIndependent forumLowLowExternalhttps://p2pindependentforum.com/N/A
2P2P Market DataLowLowExternalhttps://p2pmarketdata.com/p2p-lending-funding-volume-uk/2nd placed in UK
34th Way LowLowExternalhttps://www.4thway.co.uk/3 out of 3 Star
Exceptional
4Financial Thing LowLowExternalhttps://www.financialthing.com/4 out of 5 Star
5TrustPilotLowMediumExternalhttps://www.trustpilot.com/search?query=kuflink&search-button=4.7 out of 5

Governance - Consumer Surveys

 ESGDate of Survey
ESG ImpactEase of Implementation
Internal / ExtenalScored 8 and above
(out of 10) for rating
overall experience with kuflink
Scored happy on customer service
Found products and
services clear and
easy to understand
Found it easy to
find answers
Found platform easy to useFound right information at the
right time
Confirmed using the
platform brought a
positive outcome.
Feel they have a good understanding
of P2P property loans
Said we make risks and challenges
associated with
online investing
clear and easy to
understand
1Consumer
Survey to All
Jan
2022
Low LowExternal84.37%84.85% 96.87%96.87%93.75% 84.37%100.00%93.75%N/a
2Consumer
Survey to
Everyday
Investors Only
Feb
2022
LowLowExternal72.50%76.25%77.00%86.25%81.25% 78.75%87.00%90.00%94.00%
3Consumer
Survey to All
Jun 2022LowLowExternal84.45%97.90%91.75%89.69%85.93%86.01%95.74%96.39%96.89%

Governance - Trustpilot

Jul-21Aug-21Sep-21Oct-21Nov-21Dec-21Jan-22Feb-22Mar-22Apr-22May-22Jun-22Jul-22 FY22FY21FY20FY19FY18
4.64.64.64.64.74.74.74.74.74.74.74.74.74.74.64.64.64.5

Governance - Controls

 ESGESG ImpactEase of ImplementationInternal / External
Last Certification DATELink
1Cyber EssentialsLowMediumExternalOctober 2021Cyber Essentials Certificate
2ISO 27001 (UKAS) AuditorLowMediumExternalMarch 2022 ISO27001 Certificate
3External Independent AuditorLowMediumExternalJune 2021 Macintyre Hudson MHA
4Internal Independent Audit Team
LowMediumExternalFebruary 2022Internal Control Framework incorporates:
1. COBIT 2. COSO
5HMRC ISA Manager ApprovalsLowMediumExternalMay 2017HMRC ISA Manager
Approval Certificate
6Insurances
Professional Indemnity, Directors & Officers,
Employers and Public, Cyber insurance
LowLowExternalMay 2022Markel International
Insurance Company Ltd
7Operational Resilience LowMediumInternalMarch 2022New requirements to strengthen operational resilience in the Payment Services sector (Open Banking - Kuflink One Ltd). We have undertaken this task across the Whole Group

Governance - Non-Executive Directors

 ESGESG
Impact
Ease of Implementation
Internal / ExternalDATEDirectorshipBiography
1Balbir ThindLow MediumExternal 19/05/2016Independent Non-Executive ChairmanBalbir is an entrepreneur and businessman who co-founded Michelin Star restaurant Hakkasan in London’s Mayfair, as well as Thai restaurant Basuba, both of which he has since sold. Balbir has
invested the substantial proceeds from his businesses into property Investment and has extensive knowledge of the UK property market.
2Sukhdev DhillonLow MediumExternal 17/10/2018Independent Non-Executive DirectorSukhdev Dhillon has joined Kuflink following a 38-year career with RBS/NatWest Group. During this period, he was employed in some of the most prominent City offices of NatWest Bank, including a period in Credit Underwriting managing the credit risk for a number of major corporate clients.

Governance - Group

NoGroup Company nameModelCo No
1Kuflink Group PlcGroup09084634

Governance - Authorised and Regulated by the Financial Conduct Authority

 Authorised and Regulated Subsidiaries
Company name
Companies House NumberIncorporation DateModelInternal / External FCA LinkFCA Reg. No (FRN)FCA Authorised Since
1Kuflink Ltd 0846050825/03/2013Online P2P platformExternalKuflink Ltd on FCA Search Register72489027/04/2017
2Kuflink Bridging Ltd 0788922621/12/2011Unregulated Bridging loansExternalKuflink Bridging Ltd on FCA Search Register72349514/10/2016
3Kuflink Home Loans Ltd 0781742120/10/2011Regulated mortgage loansExternalKuflink Home Loans Ltd on FCA Search Register57177306/06/2012
4Kuflink One Ltd1220686413/09/2019Registered Account Information
Service Provider (AISP) Open Banking
ExternalKuflink One Ltd on FCA Search Register92202617/04/2020

Profit & Loss - Kuflink Group Plc

£000's 07/2108/2109/2110/2111/2112/2101/2202/2203/2204/2205/2206/22 YTD FY22FY21FY20FY19FY18FY17
(9)
Interest Income(1)528.6569.7603.7666.6598.7643.5635.9623.01,206.7661.4748.6774.08,260.48,688.96,141.25,850.03,990.42,829.73,787.7
Total Net Income(2)288.5334.6366.6418.5365.3401.6379.4363.1933.2378.6440.2481.65,151.25,454.12,940.12,895.12,078.71,865.53,787.7
Direct Costs(3)(37.3)(38.7)(37.0)(38.7)(37.6)(40.6)(45.6)(41.7)(531.0)(49.9)(48.4)(74.7)(1,021.3)1,520.3142.6507.1(891.7)(2,529.9)(1,529.4)
Gross Profit(4)251.2295.9329.6379.8327.7361.0333.8321.3402.3328.7391.7406.84,129.83,933.83,082.73,402.11,187.0(664.4)2,258.3
Other Costs(5)(293.0)(253.8)(272.8)(247.5)(293.2)(268.8)(255.1)(278.3)(286.2)(308.0)(301.2)(327.3)(3,385.3)(3,371.7)(2,853.0)(3,624.0)(3,906.2)(3,073.3)(2,140.1)
Net Profit before Tax(6)(41.8)42.156.8132.334.592.278.743.0116.020.790.579.5744.6562.1229.7(221.9)(2,719.2)(3,737.7)118.1
Taxation(7)0.00.00.00.00.00.00.00.00.00.00.000.00.0232.9103.30.0341.4(82.1)
Net Profit after Tax(8)(41.8)42.156.8132.334.592.278.743.0116.020.790.579.5744.6562.1462.6(118.6)(2,719.2)(3,396.4)36.0
Compound Annual Growth Rate of Interest Income (CAGR)18%13%16%3%-25%

Notes

(1) Interest earned from loan book. (Reported net in FY17).

(2) Total Net Income is all interest and fees earnt on loans for the period less interest paid to investors.

(3) Direct Costs includes all other loan set up costs and cashbacks due to investors. Direct Costs also includes movements in bad debt provision, hence shown as income in FY21 & FY20 as some debts previously written off in FY18 were recovered.

(4) Gross Profit reports the income remaining on loan interest and fees after deducting costs directly related to the loans.

(5) Other Costs relate to all the other costs incurred in running the business (including salaries, marketing, IT costs and depreciation of assets)

(6) Profit made by Kuflink before Tax

(7) Corporation Tax paid, note this is paid yearly, company has tax credits on historical losses, not yet calculated for FY22

(8) Remaining profit after Corporation Tax

(9) Forecast for FY22 based on latest projection

FY = Financial years to 30th June. (FY17 was for 18 months)

Balance Sheet - Kuflink Group Plc

£000's 07/2108/2109/2110/2111/2112/2101/2202/2203/2204/2205/2206/22 FY21FY20FY19FY18FY17
Net Loan Book(1)57,07661,72364,53565,84568,84470,02571,60372,27174,79676,36084,49385,95654,16536,40529,64616,59810,508
Cash at Bank(2)2,6381,3951,1981,0731,0932,4103,4381,6012,4402,4681,2512,0041,6835621,2288761,058
Other Assets(3)2,0592,0192,0241,9901,9641,9341,9302,0082,0031,9792,1482,2142,2571,9612,3051,7131,241
Total Assets61,77465,13767,75668,90871,90174,37076,97175,88079,23980,80787,89290,17458,10538,92733,17919,18812,807
Investors(4)(56,310)(58,691)(61,177)(61,893)(64,730)(66,955)(69,313)(69,377)(71,111)(73,242)(79,353)(81,251)(52,339)(35,027)(32,833)(17,486)(8,362)
Other Creditors(5)(2,351)(3,290)(3,367)(3,672)(3,791)(3,943)(4,108)(4,253)(4,419)(3,835)(4,719)(5,024)(2,611)(1,574)(1,276)(843)(402)
Total Liabilities(58,661)(61,981)(64,544)(65,565)(68,522)(70,899)(73,421)(73,631)(75,530(77,077)(84,072)(86,275)(54,950)(36,601)(34,109)(18,329)(8,764)
Net Balance Sheet3,1133,1553,2123,3443,3793,4713,5502,2493,7093,7303,8203,8993,1552,326(930)8594,043
Share Capital(6)9,3439,3439,3439,3439,3439,3439,3439,3439,3439,3439,3439,3439,3438,9775,5924,6623,991
Cumulative Profits/Losses(7)(6,230)(6,188)(6,131)(5,999)(5,965)(5,872)(5,793)(5,750)(5,634)(5,614)(5,523)(5,445)(6,188)(6,651)(6,522)(3,803)51
Funding of Balance Sheet3,1133,1553,2123,3443,3793,4713,5503,5933,7093,7303,8203,8993,1552,326(930)8594,043

Notes

(1) Loan Book with future retained interest deducted and adjusted for any impairments.

(2) Bank Balance.

(3) Other Assets held including fixed assets, payments made in advance and value of P2P platform and after IT applications built in-house.

(4) Platform and KBL investor balances.

(5) All others owed including interest accrued but not yet paid.

(6) Shares issued

(7) Cumulative total of all profit and losses since incorporation

Taxes Collected and Paid - Kuflink Group plc

£000's Jul-21Aug-21Sep-21Oct-21Nov-21Dec-21Jan-22Feb-22Mar-22Apr-22May-22Jun-22 FY22FY21FY20FY19FY18FY17
Corporation Tax(1)(232.9)(103.3)0.0(341.4)82.1
PAYE Tax(2)55.442.142.241.348.949.139.939.847.257.153.054.3570.3525.5636.3502.2436.8378.1
VAT(3)18.219.319.725.582.7204.1
Total55.442.160.441.348.968.439.939.866.957.153.079.8653.0496.8533.0502.295.5460.2

Notes

(1) Corporation Tax paid, note this is paid yearly, company has tax credits on historical losses

(2) Pay As You Earn Tax and National Insurance payable on monthly salaries, Kuflink deferred PAYE for some months during the Covid 19 pandemic but has since settled the liability in full

(3) VAT payment was made in June 2021 for £139k. The remainder is VAT payable on non UK invoices for the quarter. Continuing on a quarterly basis thereafter. 

Group’s Financial Resilience

 Jul-21 Aug-21 Sep-21Oct-21 Nov-21Dec-21 Jan-22 Feb-22Mar-22Apr-22May-22Jun-22
Firm's own Cash position£2,638,194£1,395,272 £1,197,708£1,073,079£1,092,753£2,410,379£3,437,875£1,600,793 £2,440,142£2,468,590£1,251,470£2,004,201

Associations

Award Winning

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