Blackmore Bond investors have expressed relief after they received their owed quarterly interest payments, which were due by 31 July.
Money Marketing first reported last week the company was late paying interest to its investors, which it attributed to “banking issues”.
Blackmore bondholders took to online forums to vent their concerns when they realised they had not been paid by the deadline and were unable to get through to Blackmore on the phone.
The incident also followed Blackmore delaying its accounts last month.
Some investors were also worried as Blackmore has a similar business model as collapsed “mini-bond” provider London Capital & Finance, with both using the same marketing firm.
While investors have since confirmed they have received the interest payments they have criticised the company’s communication and said it will have to repair a “tarnished reputation”.
User Paul Scutchings wrote a review of Blackmore on Trustpilot, which says: “Interest has been paid as indicated in Monday’s posting etc. If only that communication had been posted on Friday it would have saved so much worry and been the professional thing to have done.”
Posting ahead of the interest payment another user wrote: “Although it is very nice to get the interest payments more worried about investments being safe. Such a shame because for two years they have been 1st class and now they have to repair a tarnished reputation.”
When the delay come to light a Blackmore spokeswoman told Money Marketing it was due to banking issues.
Subsequently, a disclaimer was put on the Blackmore website saying: “On behalf of Blackmore Bonds Plc, We would like to apologise for the late payment of your quarterly interest.
“The payment was due to be made on the 31st July, however due to a clerical error our bulk payment system failed to process the payments.
“The payments were re processed on the 2nd August. Our provider has a service level agreement of three working days, which means that your interest is likely to be received on Monday the 5th August but could take up until Wednesday the 7th August.
“We again apologise for any inconvenience caused.”
According to one investor, he received an email with this explanation from Blackmore director Patrick McCreesh. And while initially investors calling for the explanation were met with a jammed line, they could eventually hear a recorded message with the same explanation.
This incident was the first instance of Blackmore being late paying its investors.
The latest available accounts for the company which covered the period up until 2017, showed that Blackmore reported an operating loss of £7.6m.
It attributed this mainly to £5m it paid in fees to its “strategic partner” Surge financial, which promoted LC&F for 25 per cent commission.