RCS - Together Fin. Svc. - Results for the quarter ended September 30, 2025.

Bank of IrelandAnnouncement

20/11/2025 08:15

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RNS Number : 2657I  Together Financial Services Limited  20 November 2025

Together Financial Services Limited

20(th) November 2025

Together Financial Services Limited ('Together' or 'the Group'), which aims to
be the UK's finance partner of choice, is pleased to announce its results for
the quarter ended September 30, 2025.

Commenting on today's results, Richard Rowntree, Group Chief Executive Officer
of Together, said:

"Together delivered another strong performance during the quarter with the
loan book reaching a new high of £8.0bn, underlying net interest margin
remaining highly attractive at 5.3% and underlying profit before tax up 4% on
the same quarter last year to £55.7m.

"We made good progress against our strategic plan, advancing our lending
system transformation programme into the testing phase and further enhancing
our Executive management team and Board. We also maintained our funding
momentum, successfully issuing our second residential mortgage-backed
securitisation of 2025, refinancing our development loan securitisation and
our revolving credit facility on better terms whilst extending maturity and
securing improved commercial terms across four securitisation warehouses.

"The UK economic outlook remains mixed, with expected interest rate cuts
tempered by persistent inflation, global volatility and a softening jobs
market. Despite these headwinds, with over 50 years' experience and long-term
structural trends supporting increasing demand in our market, we are
well-positioned to navigate these challenges and help our customers achieve
their property ambitions."

Financial highlights: quarter ended September 30, 2025

·    Continued loan book growth at low LTVs

-     Average monthly lending of £270.6m, up 0.5% on Q1'25 (£269.3m) and
6.6% on Q4'25 (£253.9) driven by strong demand for our products and services

§ Conservative approach to lending maintained with weighted average
origination LTVs of 60.0% (Q1'25: 59.9%; Q4'25: 60.0%)

-     Group net loan book increased to £8.0bn, up 5.5% on Q1'25 (£7.6bn)
and up 1.3% on Q4'25 (£7.9bn)

§ Loan book protected by low weighted average indexed LTV of 55.7% (Q1'25:
55.6%; Q4'25: 55.8%)

·    Arrears remain broadly flat at 5.5% (Q1'25: 5.2%; Q4'25: 5.5%)

·    Another robust financial performance

-     Interest receivable and similar income of £218.5m, up 1.9% on Q1'25
(£214.5m) and up 1.7% on Q4'25 (£214.8m)

-     Underlying net interest margin remains attractive at 5.3% (Q1'25:
5.2%; Q4'25: 5.7%), driven by our successful product pricing and funding
strategy

-     Annualised cost of risk of 0.96% (Q1'25: 0.79%; Q4'25: 1.36%)

-     Group remains highly profitable and cash generative

§ Underlying profit before tax of £55.7m, up 3.7% on Q1'25 (£53.7m)
primarily due to the increase in net interest income compared to the prior
year, and up 13.4% on Q4'25 (£49.1m) as a result of a lower impairment charge
and reduced administrative expenses versus the last quarter

§ Underlying cost to income ratio remaining low at 30.4% (Q1'25: 30.3%;
Q4'25: 31.9%)

§ Cash receipts of £902.5m (Q1'25: £787.7m; Q4'25: £844.8m) following a
strong quarter for redemptions

 

                                                                                                 3 months ended or as at                                     3 months ended or as at June 30

                                                                                                 September 30

 Key metrics                                                                                                         2025                           2024      2025

 Interest receivable and similar income (£m)                                                                         218.5                          214.5    214.8
 Underlying interest cover ratio(( 1  (#_ftn1) ))                                                                    1.5:1                          1.5:1    1.5:1
 Interest cover ratio                                                                                                1.6:1                          1.4:1    1.4:1
 Underlying net interest margin(( 2  (#_ftn2) )) (%)                                                                 5.3                            5.2      5.7
 Net interest margin (%)                                                                                             5.8                            5.2      5.7
 Underlying cost-to-income ratio(1) (%)                                                                              30.4                           30.3     31.9
 Cost-to-income ratio (%)                                                                                            33.3                           33.7     39.0
 Underlying cost-to-asset ratio 3  (#_ftn3) (%)                                                                      1.6                            1.5      1.7
 Cost-to-asset ratio (%)                                                                                             1.9                            1.7      2.1
 Cost of risk (%)                                                                                                    0.96                           0.79     1.36
 Underlying profit before taxation(1) (£m)                                                                           55.7                           53.7     49.1
 Profit before taxation (£m)                                                                                         59.3                           50.3     41.2
 Underlying EBITDA(1)                                                                                                171.7                          172.9    155.4
 EBITDA                                                                                                              165.3                          169.5    147.5
 Loans and advances to customers 4  (#_ftn4) (£m)                                                                    7,999.7                        7,581.4  7,894.3
 Net borrowing to loan assets (%)                                                                                    83.2                           83.7     84.0
 Shareholder funds(( 5  (#_ftn5) )) (()£m)                                                                                   1,272.3                1,177.0  1,213.4
 Underlying return on equity(1) (%)                                                                                  14.6                           14.1     12.7
 Return on equity (%)                                                                                                15.5                           13.3     10.7

 

·    Good progress against strategic plan: Invest / Optimise / Grow

·    Transformation programme progressed into testing phase

·    Strengthened and diversified Executive team and Board

-     Dave Sutherland joined as Chief Operating Officer from Bank of
Ireland (Jul'25)

-     Cheryl Brough joined as Chief People Officer from Prima
Assicurazioni (Aug'25)

-     Andy Higginson appointed to Group Board as Non-Executive Director
(Sep'25)

·    Loan book increased to new high of £8.0bn, driven by strong customer
demand

·    Funding momentum maintained

-     Extended RMBS programme with issuance of £367m TABS 14 RMBS
(Sep'25)

-     Refinanced ADALO development securitisation facility and RCF on
improved terms and extended maturity (Oct'25)

-     Repriced four warehouse facilities on improved commercial terms
(Oct'25)

 

·    Continued to receive industry recognition

-     Retained 'Silver' accreditation with Investors in People (Sep'25)

-     Included in Financial Times Europe's Long-Term Growth Champions 2026
(Oct'25)

-     Awarded North West Business of the Year by Business Desk (Oct'25)

-     Awarded Best Product Range at National Mortgage Awards 2025 (Oct'25)

-     Won Joint Gold for our 2024 Annual Report at the Corporate &
Financial Awards (Nov'25)

 

Q1 2025/26 Results Presentation

Together will be presenting its Q1 2025/26 results via audio webcast at 14:00
GMT (09:00 EST) today, for the quarter ended September 30, 2025.

The presentation for analysts and investors is expected to last for
approximately 25 minutes, followed by a Q&A.

The slides will be available on the Investor Relations website
(https://investors.togethermoney.com/ (https://investors.togethermoney.com/) )
ahead of the presentation.

The live audio webcast for the Q1 25/26 results will be available via the
following link:

https://www.investis-live.com/together/68fb70400727be00165cf53a/rgewe
(https://url.uk.m.mimecastprotect.com/s/zJ4vCY5xGcpjPjPHYiouxIipI?domain=investis-live.com)

The webcast will also be accessible via a live conference call:

·      Access code: 192240

·      From the UK: +44 20 3936 2999 / +44 808 189 0158

·      Global Dial-In Numbers
(https://url.uk.m.mimecastprotect.com/s/AjnRCD8r5UJDQDQh5hZuj0Tjk?domain=netroadshow.com)

 Together
 Mike Davies, Director of Corporate Affairs  +44 7753 138185

                                             mike.davies@togethermoney.com (mailto:mike.davies@togethermoney.com)

 Camarco (Financial PR)

 Ben Woodford

                                             +44 7990 653341

 Alex Campbell                               ben.woodford@camarco.co.uk (mailto:ben.woodford@camarco.co.uk)

                                             +44 7710 230545

                                             alex.campbell@camarco.co.uk

 

 

About Together

Together has been giving people a fair chance to bring their property
ambitions to life for over 50 years.

We provide a wide range of flexible lending products including residential and
buy-to-let mortgages, bridging loans, commercial mortgages and development
funding to give our customers the opportunity to turn their ambitions into
reality.

By using our expertise and common sense, we build trusted relationships and
open doors to help individuals, SMEs, businesses and property investors to
thrive.

Together is the trading name of Together Financial Services Limited, which has
its registered office address at Lake View, Lakeside, Cheadle, Cheshire SK8
3GW.

 1  (#_ftnref1) Excludes non-underlying items incurred in the period. During
the current quarter, the Group incurred £6.4m of transformation expenditure
as well as recognising a modification gain of £10.0m. ((Q1 ')25 exceptional
items consisted of £(3.4m) of transformation costs whilst (Q4 '25)
exceptional items consisted of £7.(9)m of transformation costs)

 2  (#_ftnref2) (Excludes non-underlying items incurred in the period. During
the current quarter, the Group recognised a modification gain of £10.0m)
(that has been included in interest payable)

 3  (#_ftnref3) During the current quarter, the Group incurred £(6.4)m of
transformation costs. ((Q1')24 Exceptional items consisted of £(3.4m) m of
transformation costs whilst (Q4 '25) exceptional items consisted of £7.(9)m
of transformation costs)

 4  (#_ftnref4) Net of gross loans and advances to customers and impairment
allowances

 5  (#_ftnref5) Includes subordinated shareholder loans of £(25.5)m ((Q1
')25: £(23.3) m, (Q4 ')25: £(24.9)m)

 

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