LendInvest narrows pre-tax losses in first half
LendInvest narrowed its pre-tax losses and boosted its lending volumes by nearly a third over the first half, as it eyes full-year profitability.
The specialist property lender reported a pre-tax loss of £1.7m for the six months to 30 September 2024, up from a £15.7m loss in the comparative period last year.
Meanwhile, lending volumes rose by 30 per cent to £539.1m, boosted by particularly strong growth in its mortgages division.
Funds under management also increased by 12 per cent year-on-year to £4.67bn, driven by successful capital-raising projects.
Read more: LendInvest chief receives no bonus or pay rise after lender falls into red
LendInvest expanded its partnership with JP Morgan by £500m to £1.5bn with an extension for three years, bolstering growth for its buy-to-let and owner-occupied products. It also renewed a £300m financing syndicate with BNP Paribas, Barclays, and HSBC.
Assets under management (AUM) grew by nine per cent year-on-year to £2.95bn, as the firm’s focus on third-party managed assets drove a 71 per cent rise in net fee income, reaching £11.3m.
Chief executive Rod Lockhart said the rise in net fee income is “a key indicator of our progress toward more stable and simplified earnings”, as it looks to deliver strong returns for investors through “a less volatile, fee-driven revenue model”.
Debt fell by 29 per cent year-on-year to £601.7m.
Read more: LendInvest inks £500m funding deal with JP Morgan
“As we pass the halfway mark of FY25, our results reflect good progress on our key strategic objectives: growing lending, reducing costs, and bringing down debt,” said chief executive Rod Lockhart.
“These actions underpin our shift toward a capital-light, asset management-oriented model, which allows us to drive stable, recurring earnings.
“While recent performance – including achieving profitability in September – has been encouraging, ongoing interest rate volatility, triggered by both macro-economic and geopolitical uncertainty, could present headwinds in H2. However, we are reassured by supportive UK government measures aimed at catalysing house building, improving energy efficiency and professionalising the buy-to-let sector. As such, we remain cautiously optimistic about achieving run-rate profitability during the rest of the year.”
Read more: LendInvest lowers full-year profit guidance due to accounting issue
