Lendinvest (LINV) H1 2025 earnings summary

Executive summary

• Achieved significant progress in transitioning to a capital-light, fee-based asset management model, with 81% of assets under management now third-party funded, driving stable, recurring revenue and reducing risk exposure.

• Lending volumes increased 30% year-on-year to £539.1m, with Mortgages Division lending up 67% year-on-year, supported by operational efficiency gains.

• Loss before tax reduced by 89% year-on-year to £1.7m; adjusted EBITDA improved 103% to £0.3m, with profitability achieved in September.

• Assets under management grew 9% year-on-year to £2.95bn, and funds under management increased 12% to £4.67bn.

• Strategic partnerships expanded, including a £1.5bn facility with JP Morgan and renewed £300m syndicate with BNP Paribas, Barclays, and HSBC.

Financial highlights

• Net operating income increased 39% year-on-year to £17.4m; net fee income rose 71% to £11.3m, driven by growth in third-party managed assets.

• Administrative expenses fell 20% year-on-year to £16.9m; impairment charges dropped 69% to £2.2m, reflecting improved asset quality.

• Cash and cash equivalents at £71.6m, up 29% from March 2024.

• Debt reduced 29% year-on-year to £601.7m.

• Loss after tax improved 90% year-on-year to £1.2m; diluted EPS at (0.8)p vs (8.5)p.

Outlook and guidance

• Cautiously optimistic for continued profitability, with a focus on operational efficiency, cost management, and expanding lending and third-party capital.

• Plans to launch a streamlined residential mortgage proposition in H2 and invest in technology to support cost targets.

• Ongoing interest rate volatility and geopolitical uncertainty remain potential headwinds for H2.