June 29, 2022

LendInvest announces Full Year Financial Results for FY22

UNAUDITED PRELIMINARY RESULTS FOR THE YEAR TO 31 MARCH 2022

Record FuM and 90% Adjusted EBITDA growth; Board recommends a maiden dividend

 

LendInvest plc (LSE: LINV; the “Company” or the “Group”), a leading technology driven asset manager for UK property finance, is pleased to announce its unaudited preliminary results for the year to 31 March 2022.

 

Rod Lockhart, Chief Executive of LendInvest, commented:

“This has been a landmark year for LendInvest. We have delivered our most profitable set of results to date and successfully listed on AIM to support our growth ambitions.  Our performance is testament to the attractiveness of our model, demonstrated by our ability to attract significant capital from our investors and the strong demand from borrowers for our innovative offering and stand-out customer service. We are particularly delighted to have reached a record £2.9bn of funds under management.

“Taking into account our continued strategic progress, attractive financial profile and confidence in our long-term prospects, the Board is pleased to recommend a maiden dividend of 4.4p per share. Moving forward, the Board is confident that the Group’s cash flows will comfortably support a progressive dividend policy and enable us to continue with our investment plans to grow the business.

“We remain at the forefront of the digital transformation of one of the last verticals of financial services yet to be disrupted by technology. While we are mindful of the uncertain economic environment, we are very excited about the significant opportunities ahead.”

FY 2022 Financial Highlights:

·      Strong demand for our Buy-to-Let (“BTL”) products resulted in a 67% increase in BTL Platform AuM which drove a 36% increase in total Platform AuM

·     Investor appetite for exposure to the UK property finance market via our investment products resulted in an 18% increase in FuM to a record £2.9 billion

·       Growth in Platform AuM, a change in the product mix and improved funding terms resulted in a 32% increase in gross profit, and an improvement in gross profit margin from 52% to 57%

·        Continued operational leverage and efficiency gains drove Adjusted EBITDA up 90%

·     Profit before tax increased 190% to £14.2 million partly driven by profits arising from the completion of our third securitisation and the transfer of a £100 million portfolio of BTL assets to J.P. Morgan under the separate account agreement

·       Diluted earnings per share increased 142% to 8.0 pence per share (31 March 2021: 3.pence per share)

·       Board recommends a maiden full year dividend of 4.4p per share

Strategic highlights:

·     Successfully joined the London Stock Exchange on AIM in July 2021, raising £40 million to invest in the Group’s property finance product roadmap and the continued development of its technology

·       Further strengthened our relationship with J.P. Morgan through the sale of a £100 million portfolio of prime BTL loans in September

·     Successful closing of our third Residential Mortgage-Backed Securities (RMBS) transaction (“Mortimer BTL 2021-1 plc”), which achieved the tightest spread on a UK BTL securitisation in over 13 years

·      Renegotiation and expansion of financial partnerships with Citi and National Australia Bank, extending the terms and improving capital efficiency, pricing and criteria                   

·     New £150 million financial partnership with Barclays and HSBC to fund short term bridging loans with a particular focus on the retro-fitting and renovation of the UK’s ageing housing stock

·       Onboarded an additional 519 new brokers to the platform with a first signed application

·     Investment in technology continues to drive operating leverage; operational expenditure as a percentage of Platform AuM has dropped significantly from 3.4% to 1.3% over a three-year period

·      Launch of EPiC product range in October 2021 that incentivises landlords to refurbish and increase the environmental efficiency of their properties

·     Launch of 7-year fixed products which accounted for 27% of Buy-to-Let completions in calendar Q1 2022 demonstrating our ability to respond quickly to changing customer preferences

·     Key management hires in technology and for our Specialist Homeowner product which we intend to launch in the second half of FY 2023

 

Summary Performance

                                                        

 

(Unaudited)

Year to

31 March 2022

Year to

31 March 2021

(Restated)2

 

Growth

Platform AuM (£m)1

2,146.1

1,573.3

36%

Funds under management (FuM) (£m)1

2,936.6

2,483.6

18%

Revenue (£m)

87.8

72.4

21%

Gross profit (£m)

49.7

37.6

32%

Profit from operations (£m)

13.4

7.1

89%

Adjusted EBITDA (£m)1

20.3

10.7

90%

Profit before tax (£m)

14.2

4.9

190%

Diluted earnings per share1

8.0p

3.3p

142%

 Dividend per share

4.4p

n/a

1 See Glossary for an explanation of these terms and their reconciliation, where relevant, to IFRS measures

2 The prior numbers have been restated, please see note 1.6 for further details

 

Dividend policy

The Board seeks to balance delivering attractive shareholder returns while maintaining disciplined capital allocation, balance sheet flexibility, and sufficient surplus of funding for continued product development and potential longer-term strategic opportunities.

The Board has therefore recommended a maiden gross cash dividend of 4.4p per share for the year to 31 March 2022 and plans to pursue a progressive dividend policy.

Board role changes

After 14 years of actively building the business, including a successful transition to a public company Christian Faes is looking to adapt his role from Executive Chair to a more traditional Non-Executive Chairman role in the coming year. The board is supportive of his decision and is of the view that it is in the best interest of all stakeholders. The directors look forward to working closely with Christian in his adjusted role.

 

Enquiries:

LendInvest via Tulchan Communications                                               +44 (0)20 7353 4200

Rod Lockhart, Chief Executive Officer

Michael Evans, Chief Financial Officer

Alex Dee, Head of Investor Relations

Leigh Rimmer, Senior PR Manager

[email protected]                       

Panmure Gordon (NOMAD and Joint Broker)                                       +44 (0)20 7886 2500

Charles Leigh-Pemberton

Atholl Tweedie

Gabriel Hamlyn

finnCap Limited (Joint Broker)                                                                               +44 (0)20 7220 0500

Jonny Franklin-Adams/George Dollemore (Corporate Finance)

Tim Redfern/Alice Lane (ECM)

Tulchan Communications (Financial PR)                                               +44 (0)20 7353 4200

Tom Murray

Matt Low

Misha Bayliss

Olivia Lucas     

About LendInvest

LendInvest is the UK’s leading platform for property finance.

LendInvest offers short-term, development and buy-to-let mortgages to intermediaries, landlords and developers. Its proprietary technology and user experience are designed to make it simpler for both borrowers and investors to access property finance.LendInvest has lent over £3bn of short term, development and buy to let mortgages.

Its funders and investors include global institutions such as HSBC, Citigroup and NAB, and, in 2019, it was the first Fintech to securitise a portfolio of BTL mortgages. The company has reported annual profitable growth since 2015 and was named Digital Innovation Award Winner at the Sunday Times Tech Track 100 Awards, and both Specialist Lender and Buy-to-Let Lender of the Year for 2019 at the last NACFB awards.

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