Credit score checker Clearscore returned to the black despite its turnover taking a hit during its latest financial year, it has been revealed.
The London-headquartered fintech business has reported a pre-tax profit of £4.8m for 2023, according to newly-filed accounts with Companies House.
The total comes after Clearscore posted a pre-tax loss of £9.9m in 2022.
The last time Clearscore reported a pre-tax profit was the £12.6m it achieved in 2021. At that time, its turnover stood at £74.4m.
The new accounts also show that turnover at the business fell from £84.1m to £76.6m in the year.
Clearscore said its fall in revenue was largely because of “the pull back in supply from lenders in the credit markets” following the rising cost of living and increased interest rates throughout the year.
The business added that it reacted to the softening in the market by reducing its administrative expenses by £21.6m to £60.4m through cutting marketing expenditure and staffing.
Clearscore hit by challenging UK economy
A statement signed off by the board said: “The business has been impacted by the wider macro-economic challenges in the UK throughout most of 2023.
“However, during 2024 and beyond the board plans to continue to make strategic investments to grow the business in existing and new verticals, in both the credit and insurance markets.
“This ongoing investment will be made through a combination of the strong cash flow generated by the core credit marketplace business and the proceeds of £10m of debt that was raised by the group in the first quarter of 2023.
“The investments will generate future growth opportunities and drive improvement to margin in the coming years.”
Clearscore was founded in 2015 by chief executive Justin Basini and Dan Cobley.