Investment Evolution Credit PLC on Friday said it swung to a loss in the first half of its current financial year, as it progresses discussions for a UK acquisition.

The London-based fintech firm specialising in online loans said it swung to a pretax loss of £405,149 in the six months that ended December 31 from a profit of £73,054 a year before.

Revenue for the half-year remained insubstantial, sinking 45% to £11,269 from £17,884, while administrative expenses more than doubled to £374,037 from £177,150.

This follows Investment Evolution’s full-year loss of £246,546 in financial 2024, in the company’s first annual report since admission to trading in December 2023.

‘The company continues to explore the Financial Conduct Authority lending application process, however it is also in discussions with potential acquisition targets in the UK lending space which already hold existing FCA lending licences, have existing operations and hold existing customer loan books with a view to considering the merits of obtaining the FCA licence via acquisition rather than application,’ said Investment Evolution.

‘Given the advanced nature of discussions with certain acquisition targets, the board anticipates that the acquisition of an existing UK FCA licensed lender could occur in Q1 2025, with more potential acquisition targets to follow. Upon signing a heads of agreement, the licence change of control process is estimated to take approximately three months and the application work previously completed in respect of the company’s own FCA lending application would be utilised in the process.’

Investment Evolution also plans to expand its current number of US state consumer lending licenses to 20 during the year, up from 6, and seeks to ‘significantly expand’ its operations in the US.

Shares in Investment Evolution were untraded at 12.50 pence each on the Aquis Exchange on Friday morning.

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