Pre-tax profit increases by 190%; funds under management hits £2.9 billion
LendInvest, a technology-driven asset manager for UK property finance, reported significant growth across all metrics as it released its unaudited preliminary results for the financial year.
For the year to March 31, 2022, the company’s profit before tax increased by 190% to £14.2 million, partly driven by profits arising from the completion of its third securitisation and the transfer of a £100 million portfolio of buy-to-let assets to J.P. Morgan under the separate account agreement.
LendInvest highlighted the strong demand for its buy-to-let products, resulting in a 67% increase in BTL platform assets under management (AUM) which drove a 36% increase in total platform AUM.
Investor appetite for exposure to the UK property finance market via LendInvest’s investment products resulted in an 18% increase in funds under management (FUM) to a record £2.9 billion.
According to LendInvest, 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%.
The company 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.
Read more: LendInvest debuts on London Stock Exchange.
Rod Lockhart, chief executive at LendInvest, announced that the company’s board has recommended a maiden dividend of 4.4p per share.
“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,” Lockhart commented.
“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 £2.9 billion of funds under management.”
Lockhart added that the LendInvest board was confident that the group’s cash flows would comfortably support a progressive dividend policy and enable them to continue with 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,” he said.
