A leaked letter to the Guardian has revealed that in an attempt to stop employees leaving the company, the firm told staff that shares held at this estimation could be worth more than £100,000.
The letter says:
“Wonga is growing significantly, and if this growth continues we would hope our future share value (and therefore the future value of share options granted now) to also increase accordingly over the next few years.
“If we continue to achieve this growth, then at a £5.6bn valuation, which would be an x15 P/E multiple to our estimated net earnings.”
The letter warned, in bold type, that:
“Of course, as Wonga is not a publicly traded company, all share values are estimates, made on the basis of simplified assumptions, and Wonga cannot give any guarantees or representations as to the achievability or reasonableness of any future projections.”
Wonga did not float on the stock exchange, and remains a private company.
In July, Wonga were ordered to pay a £2.6m redress over fake legal letters the firm had sent to pressurise borrowers into paying their debts. In addition, the company were forced to write off 300,000 loans earlier this month after FCA intervention.
