Lendinvest (LINV) H2 2024 earnings summary

Executive summary

• FY2024 was challenging, with a full-year post-tax loss of £20m, but early FY2025 shows 20% higher new lending versus FY2024 average, indicating signs of recovery.

• Advanced strategic objectives: product innovation, expanded funding partnerships, and technology upgrades, including a fully integrated mortgage portal.

• Prioritized balance sheet strength, reducing debt by £645m (56%) and increasing cash by 19%.

• Restructured cost base, reducing headcount by 27% and payroll by £5m annually, incurring £1.6m in restructuring costs.

• Leadership changes: Stephen Shipley appointed permanent CFO, Hugo Davies returns to Chief Capital Officer and leads Mortgages Division.

Financial highlights

• Pre-tax loss of £27.3m and post-tax loss of £20m, impacted by one-offs and lower lending volumes.

• Net interest income down 78% to £8.5m; net fee income up 42% to £15.9m year-over-year.

• Net operating income fell 57% to £23.5m; total operating expenses rose 26% to £50.8m.

• Gains of £12m from sale of Mortimer 2021 residual interest offset by £13m losses from other sales.

• Cash and cash equivalents increased 19% to £55.7m; unrestricted cash at £17.2m.

Outlook and guidance

• On track to return to profitability in FY2025, supported by cost efficiencies and market recovery.

• Focus on operational efficiency, technology-driven scalability, and leveraging market opportunities.

• Well positioned to benefit from Basel 3.1 reforms and increased demand for non-bank lending.

• Anticipates first Bank of England rate cut since 2020 within two MPC meetings, supporting market optimism.