In This Article:
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Assets Under Management (AUM): Exceeded GBP2.95 billion, a 9% year-on-year increase.
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Lending Volumes: Increased by 30% year-on-year to GBP539 million.
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Debt Reduction: Reduced by 29% year-on-year.
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Net Operating Income: Increased by 39% year-on-year to GBP17.4 million.
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Loss Before Tax: Reduced by 89% year-on-year to GBP1.7 million.
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Adjusted EBITDA: Improved by 103% to a gain of GBP300,000.
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Net Fee Income: Increased by 71% year-on-year to GBP11.3 million.
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Cash and Cash Equivalents: Increased from GBP55.7 million to GBP71.6 million.
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Administrative Expenses: Fell by 20% year-on-year to GBP16.9 million.
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Impairment Charges: Fell by 69% to GBP2.2 million.
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Loans and Advances: Grew by 17% to GBP557 million.
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Third-Party Capital Funding: 81% of total AUM funded externally, a 12 percentage point increase since March.
Release Date: December 09, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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LendInvest PLC (LSE:LINV) reported a significant improvement in financial performance, reducing net loss by 89% to GBP1.7 million and achieving an adjusted EBITDA gain of GBP0.3 million.
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The company has successfully transitioned towards a capital-light asset management model, with 81% of total assets under management now funded externally, enhancing income stability and reducing risk.
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Lending volumes increased by 30% year on year to GBP539 million, driven by strong growth in the mortgages division, particularly in buy-to-let and short-term products.
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Net fee income grew by 71% year on year, reflecting the successful execution of their strategy to prioritize third-party managed assets.
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LendInvest PLC (LSE:LINV) has strengthened its funding partnerships, including expanding its separate account with JPMorgan and renewing financing syndicates with BNP Paribas, Barclays, and HSBC on improved terms.
Negative Points
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The company continues to face a volatile interest rate environment, influenced by macroeconomic and geopolitical uncertainties, which could impact future profitability.
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Despite improvements, LendInvest PLC (LSE:LINV) still reported a loss before tax of GBP1.7 million for the period.
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The broader market remains challenging, with high interest rates and subdued market activity impacting lending volumes and profitability.
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There is ongoing pressure to manage costs effectively, with a focus on reducing legal and professional costs that are still running high.
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The transition to a capital-light model, while beneficial in the long term, involves significant changes and challenges in the short term, including reducing balance sheet exposure by 38%.