REG - LendInvest SI. II LendInvest - LIV3 LendInvest - LIV4 - Annual Financial Report
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RNS Number : 2697T LendInvest Secured Income II 31 July 2025
LENDINVEST SECURED INCOME II PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Registered No: 14068186
TABLE OF CONTENTS
Pages
Officers and Professional Advisors
1
Strategic report
(#_TOC_250003) 2
Directors' (#_TOC_250002) report
8
Directors' (#_TOC_250001) responsibilities (#_TOC_250001) statement
(#_TOC_250001) 11
Independent auditor's report to the members of LendInvest Secured Income II
PLC (#_TOC_250000) 12
Statement of profit and
loss
20
Statement of comprehensive
income
21
Statement of financial
position
22
Statement of changes in
equity
23
Statement of cash
flows
24
Notes to the financial
statements
25-52
OFFICERS AND PROFESSIONAL ADVISORS
DIRECTORS Roderick
Lockhart
Ian
Thomas
SECRETARY Indigo
Corporate Secretary Limited
COMPANY NUMBER 14068186
REGISTERED OFFICE 4-8 Maple Street
London
England W1T 5HD
AUDITORS BDO
LLP
55 Baker Street London
W1U 7EU
BANKER HSBC
Bank PLC 8 Canada Square London
E14 5HQ
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The Directors present their strategic report for LendInvest Secured Income II
PLC (the "Company") for the year ended 31 March 2025.
The Directors, in preparing this strategic report, have complied with section
414C of the Companies Act 2006.
The company was incorporated in England and Wales on 26 April 2022 as a public
listed company with the registered number of 14068186.
Principal activity
The principal activity of the Company during the financial period was to
provide secured property finance to third party borrowers in the United
Kingdom. This is now done both directly through underlying loans to third
party borrowers, and indirectly where proceeds are used within an intermediary
vehicle that feeds others, stretching the reach of the Company.
Performance in the period
The Company was incorporated on 26 April 2022. The Company subsequently issued
a prospectus dated 12 July 2022 offering fixed rate secured loan notes to be
listed on the London Stock Exchange's Order Book for Retail Bonds (ORB) market
and guaranteed by the Company's ultimate parent, LendInvest PLC.
As at 31 March 2025 the Company had £87.9 million of issued bonds by
principal value outstanding. The company had a gross loan book of £37.7
million of which a £104,000 fair value adjustment was posted in the period.
The Company has a number of covenants which it is required to comply with as
outlined in the prospectus issued on 12 July 2022. Quarterly, the Company is
required to report to bondholders, an analysis of its loan portfolio, via the
London Stock Exchange's Regulatory News Service and on the LendInvest website.
These have all been complied with in the year to 31 March 2025.
The Company's Interest Coverage Ratio, which compares interest earned from
borrowers to interest paid to bondholders, indicates that the Company's
earnings from loans at the period end date, are expected to cover the cost of
interest paid to bondholders 1.23 times.
The Company generated a profit after tax of £397,000 (2024: £985,000 loss)
during the year.
Directors
The Directors of the Company who were in office during the period and up to
the date of signing of the financial statements, were as follows:
Roderick Lockhart
Ian Thomas
Future outlook
The Company continues to invest in short term loans to property professionals
and may issue further notes according to the strategy of the LendInvest Group
(the "Group").
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
Principal risks and uncertainties
The Board has the overall responsibility for the establishment and oversight
of the Company's risk management framework. The risk management policies are
established to identify and analyse the risks faced by the Company, to set
appropriate risk limits and controls, and to monitor risks and ensure any
limits are adhered to. The Company's activities are reviewed regularly, and
potential risks are considered. The overall objective of the Board is to set
policies that seek to reduce risk as far as possible without unduly affecting
the competitiveness and flexibility of the business.
Creating a positive impact on the environment, the communities our borrowers
serve, and our talented people is at the heart of our approach. From rewarding
borrowers that use environmentally sound practices and contributing to social
regeneration, to supporting our employees' career development and seek to do
right by all of our stakeholders.
The Company has exposure to the following risks from its use of financial
instruments: market, liquidity and credit risk:
Market risk management
There is a risk that the Company will be adversely hit by market rate or price
movements. The company has fixed price liabilities which should mitigate any
pressure from market risk on that side. The Company's assets are also fixed
rate, but loan values will deviate through fair value adjustments should
interest rates move. This is substantiated in note 14. We have continued to
see high interest rates and inflation which are impacting our financing costs
and operations. This pressure has alleviated through FY25 and resilient demand
has been evident from a range of investors. The business continues to monitor
the level of headline pricing, the size and nature of pipeline commitments and
to seek to ensure refinancing transactions and contingencies are developed on
a timely basis.
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
Principal risks and uncertainties (continued)
Liquidity risk management
There is a risk that the Company will not be able to meet its financial
obligations as they fall due. The Company's approach to managing liquidity is
to ensure, as far as possible, that it will always have sufficient liquidity
to meet its liabilities when they fall due, under both normal and stressed
conditions, without incurring unacceptable losses or risking damage to the
Company's position. The Company's liquidity position is monitored and reviewed
on an ongoing basis by the Directors and the Assets and Liabilities Committee.
The Company's strategy is to grow the portfolio and then periodically
securitise the assets.
The tables below analyse the Company's contractual undiscounted cash flows of
its financial assets and liabilities:
Gross nominal Amount due Amount due Amount due
Carrying amount inflow / (outflow) in less than six months in six to twelve months between one to five years
At 31 March 2025 £'000 £'000 £'000 £'000 £'000
Financial assets
Cash and cash equivalents 70 70 70 - -
Receivables from related parties and other receivables 76,232 87,089 3,150 25,731 58,208
loans and advances 34,527 35,893 24,460 11,433 -
Total 110,829 123,052 27,680 37,164 58,208
Financial liabilities
Other payables (237) (237) (237) - -
Payables to related parties (20,954) (21,296) (35) (20,726) (535)
Interest bearing liabilities (90,059) (102,333) (4,092) (4,070) (94,171)
Total (111,250) (123,866) (4,364) (24,796) (94,706)
Gross nominal Amount due Amount due Amount due
Carrying amount inflow / (outflow) in less than six months in six to twelve months between one to five years
At 31 March 2024 (Restated) £'000 £'000 £'000 £'000 £'000
Financial assets
Cash and cash equivalents 685 685 685 - -
Receivables from related parties and other receivables 67,061 81,422 2,415 24,250 54,757
Other receivables 183 183 183 - -
loans and advances 31,064 31,849 24,201 7,572 76
Total 98,993 114,139 27,484 31,822 54,833
Financial liabilities
Other payables (259) (259) (259) - -
Trade and other payables (18,082) (18,082) (18,082) - -
Interest bearing liabilities (81,473) (98,841) (3,603) (3,583) (91,655)
Total (99,814) (117,182) (21,944) (3,583) (91,655)
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
Principal risks and uncertainties (continued)
Credit risk management
Credit risk is the risk that the Company's loans and advances are subject to
borrower default. It arises principally from the Company's loans and advances
to customers, receivables from related parties and cash and cash equivalents
held at bank.
Credit risk management lies at the core of the business and the Company has
continued to develop its strong credit risk management framework which
includes:
• A clearly defined credit risk policy.
• The continued recruitment of specialist skills in
credit underwriting.
• A Credit Committee which meets monthly.
• An Impairment and Modelling Committee - specifically
formed for the governance of IFRS 9 - which meets quarterly.
In addition to managing the credit risk associated with borrowers, the Company
manages other risks including:
Climate risk management
The Company gives consideration to climate risk also and as part of the Group.
The Company considers climate risk as part of the wider LendInvest Group
approach. Emerging EPC legislation may require properties to hold a minimum
EPC rating of C by 2025 in order to qualify for a mortgage or remain suitable
for rental. We therefore monitor this risk closely, as energy-inefficient
properties could become harder to refinance, increasing default risk at term.
Our lending activity is closely tied to energy performance: by funding
upgrades and retrofits, our products help borrowers meet evolving Minimum
Energy Efficiency Standards ("MEES") and contribute to the transition to a
lower-carbon housing stock.
Capital management
The Company considers its capital to comprise of its equity share capital plus
retained earnings. The Company's objectives when maintaining capital are to
safeguard the entity's ability to continue as a going concern, so that it can
continue to provide returns to shareholders. The Company sets the amount of
capital it requires in proportion to risk. The Company manages its capital
structure and makes adjustments to it in light of changes in economic
conditions and the risk characteristics of the underlying assets. In order to
maintain or adjust the capital structure, the Company may adjust the amount of
dividends paid to shareholders, return capital to shareholders, issue new
shares, or sell assets to reduce debt.
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
Director's responsibilities under the Companies Act 2006
Under section 172 of the Companies Act 2006, a Director of a UK Company must
act in the way they consider would be most likely to promote the long-term
success of the Company while having regard to the interests of stakeholders
and the broader impacts of our decisions. This section sets out how we have
discharged those duties during the financial year ended 31 March.
We identify key stakeholder groups based on their direct influence on our
ability to deliver our strategy and operate sustainably.
Employees - Why they matter: Our success depends on attracting, retaining and
empowering skilled people who believe in our mission to simplify and modernise
property finance. How we considered their interests: The Board maintained
oversight of culture and engagement through feedback forums, leadership
visibility, and regular updates on workforce sentiment. Strategic decisions -
including our headcount realignment to support operational efficiency - were
made with care and transparency, with support mechanisms in place throughout.
We continued investing in employee experience, learning and development, and
recognition frameworks to support long-term engagement.
Customers and brokers - Why they matter: Our customers - including landlords,
developers and brokers - rely on our speed, technology and reliability to
seize opportunities and scale portfolios. How we considered their interests:
Customer and broker feedback directly informed enhancements to our digital
mortgage portal and product offering. The launch of our residential mortgage
products followed identified demand for flexibility and speed, and the Board
oversaw performance metrics to ensure these needs continued to be met. As
market conditions evolved, we prioritised responsiveness, including rate
reductions and faster decisioning to maintain customer confidence and trust.
Investors and capital partners - Why they matter: We rely on continued
confidence from institutional and retail investors to grow our lending
platform and deliver shareholder value. How we considered their interests: The
Board engaged regularly with shareholders and funding partners throughout the
year, supporting a number of strategic milestones including our largest
securitisation to date and the formation of new capital partnerships. These
decisions were guided by our commitment to improving returns, reducing capital
intensity and enhancing transparency across all aspects of reporting and
investor communications.
Regulators - Why they matter: Regulatory compliance is fundamental to our
licence to operate and reputation as a responsible financial services
provider. How we considered their interests: Our governance framework remained
robust, with Board-level oversight of risk, compliance, and FCA engagement.
The launch of our expanded residential offering was supported by close
dialogue with regulators to ensure adherence to lending standards and consumer
protections.
Suppliers and delivery partners - Why they matter: Our third-party providers
support key operational functions, from legal services to platform
infrastructure. How we considered their interests: We engaged with our
partners through structured reviews and clear commercial terms. As part of our
continued digital investment, we strengthened several relationships to ensure
delivery reliability and platform scalability, aligned with our capital-light
strategy and customer expectations.
Communities and the environment Why they matter: We recognise the impact of
our activities on the communities we lend into and our responsibility to
support environmental sustainability in the built environment. How we
considered their interests: We continued to promote energy-efficient property
financing across our product suite and maintained our carbon neutrality status
for operational emissions. Board discussions included ESG progress updates and
supported initiatives that contribute to the long-term resilience and
sustainability of the housing sector.
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
Key performance indicators
The Company uses key performance indicators to track progress against its
plans. The performance of the main indicators in this reporting period were:
31 March 2025 31 March 2024 Increase/(Decrease)
Gross amounts of loans outstanding (£m) 37.7 32.9 15%
Net amounts of loans outstanding (£m) 34.5 31.1 5%
Expected credit loss provision (£m) 3.32 1.93 67%
Cash not deployed (£m) 0.1 0.7 (86%)
Euro Medium Term Note loan notes issued (£m) 87.9 80.2 10%
Total loan losses realised (annualised %) 4.39% 5.87% (25%)
Weighted average Loan to Value of loans (%) 67% 64% -
Profit/(loss) before tax (£k) 397 (985) 140%
For further details of the loan and ECL provision movements, please see note
8.
Events after the reporting date
There are no events after the reporting period that require disclosure.
Approved by the Board on 30 July 2025 and signed on its behalf by:
Roderick Lockhart
Director
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The Directors present their report and the audited financial statements of the
Company for the year ended 31 March 2025.
Future outlook
See strategic report on page 2. Principal risks and uncertainties See
strategic report on pages 3 to 5. Going concern
At a Group level, the Directors believe the Group is well capitalised and
efficiently funded, with sufficient levels of liquidity. The Directors have
reviewed the Group's capital and liquidity plans, which have been stress
tested under a range of severe but plausible scenarios. The forecast indicates
that under stressed scenarios the Group continues to operate with sufficient
levels of liquidity and capital for at least the next 12 months. A
comprehensive review of all covenants attached to the listed bonds has been
conducted to ensure ongoing compliance with both under expected circumstances
and potential stressed scenarios. Based on the above, the Directors believe
the Group has sufficient resources to continue its activities for a period of
at least 12 months from the date of approval of the financial statements.
Through reliance on its ultimate parent, the Directors have concluded that it
is appropriate to adopt the going concern basis in preparing these financial
statements for the Company.
Results and dividends
The statutory profit after tax for the year ended 31 March 2025 amounted to
£397,000. The Company paid no dividends during the period and the Directors
do not recommend a final dividend.
Director's responsibilities under the Companies Act 2006
See strategic report on pages 6 to 7.
Financial risk management objectives (including credit, market and liquidity risk)
See strategic report on pages 3 to 5.
DIRECTORS' REPORT - (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
Political donations
No political donations were made during the period.
Events after the reporting date
There are no events after the reporting period that require disclosure.
Directors
The Directors of the Company who were in office during the period and up to
the date of signing of the financial statements, were as follows:
Roderick Lockhart
Ian Thomas
DIRECTORS' REPORT - (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
Qualifying third party indemnity insurance
The Company has arranged qualifying third-party indemnity insurance for all
its Directors.
Auditors
Each of the persons who is a Director at the date of approval of this report
confirms that:
• so far as the Directors are aware, there is no relevant
audit information of which the Company's auditor is unaware; and
• each Director has taken all the steps he/she ought to have
taken as a Director in order to make himself/herself aware of any relevant
audit information and to establish that the Company's auditor is aware of that
information.
The confirmation is given and should be interpreted in accordance with the
provisions of Section 418 of the Companies Act 2006.
Appointment of auditors
In accordance with section 485 of the Companies Act 2006, a resolution for the
re-appointment of BDO LLP as auditors of the Company is to be proposed at the
forthcoming Annual General Meeting.
Approved by the Board on 30 July 2025 and signed on its behalf by:
Roderick Lockhart
Director
Directors' responsibilities statement
The Directors are responsible for preparing the Directors' report and the
financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each
financial year. Under that act the Directors have elected to prepare the
financial statements in accordance with UK adopted International Accounting
Standards. Under company law the Directors must not approve the financial
statements unless they are satisfied that they give a true and fair view of
the state of affairs of the Company and of the profit or loss of the Company
for that period.
In preparing these financial statements, the Directors are required to:
• select suitable accounting policies and then apply them
consistently;
• make judgements and accounting estimates that are reasonable
and prudent;
• state whether they have been prepared in accordance with
IFRS, subject to any material departures disclosed and explained in the
financial statements; and
• prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the Company will continue in
business.
The Directors are responsible for keeping adequate accounting records that are
sufficient to show and explain the Company's transactions and disclose with
reasonable accuracy at any time the financial position of the Company and
enable them to ensure that the financial statements comply with the Companies
Act 2006. They are also responsible for safeguarding the assets of the Company
and hence for taking reasonable steps for the prevention and detection of
fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the
corporate and financial information included on the Company's website.
Legislation in the United Kingdom governing the preparation and dissemination
of financial statements may differ from legislation in other jurisdictions.
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LENDINVEST SECURED INCOME II PLC
Opinion on the financial statements
In our opinion:
• the financial statements give a true and fair view of the state of
the Company's affairs as at 31 March 2025 and of its profit for the year then
ended;
• the Company financial statements have been properly prepared in
accordance with UK adopted international accounting standards; and
• the financial statements have been prepared in accordance with the
requirements of the Companies Act 2006.
We have audited the financial statements of LendInvest Secured Income II PLC
(the 'Company') for the year ended 31 March 2025 which comprise Statement of
profit and loss, the Statement of comprehensive income, the Statement of
financial position, the Statement of changes in equity, the Statement of cash
flow and notes to the financial statements, including a summary of significant
accounting policies. The financial reporting framework that has been applied
in their preparation is applicable law and UK adopted international accounting
standards.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing
(UK) (ISAs
(UK)) and applicable law. Our responsibilities under those standards are
further described in the
Auditor's responsibilities for the audit of the financial statements section
of our report. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
Independence
Following the recommendation of the audit committee, we were appointed by the
Directors in March 2023 to audit the financial statements for the period
ending 31 March 2023 and subsequent financial periods. The period of total
uninterrupted engagement including retenders and reappointments is 3 years,
covering the years ended 31 March 2023 to the year ended 31 March 2025 . We
remain independent of the Company in accordance with the ethical requirements
that are relevant to our audit of the financial statements in the UK,
including the FRC's Ethical Standard as applied to listed public interest
entities, and we have fulfilled our other ethical responsibilities in
accordance with these requirements. The non-audit services prohibited by that
standard were not provided to the Company.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Directors'
use of the going concern basis of accounting in the preparation of the
financial statements is appropriate. Our evaluation of the Directors'
assessment of the Company's ability to continue to adopt the going concern
basis of accounting included:
· reviewing minutes of meetings of those charged with governance
and correspondence with regulators, such as the Financial Conduct Authority,
for any factors which could be of higher risk in relation to going concern;
· challenging the appropriateness of the Directors' assumptions and
judgements made in the base forecast and stress-tested forecast. In doing so
we agreed key assumptions such as forecast growth to historic actuals and
relevant data and considered the historical accuracy of the Directors'
forecasts by comparing them to actual results;
· enquiring with the Directors to determine whether there were any
breaches of borrowing covenants within the period or subsequent to period end
and the ability to manage any potential breaches;
· performing a review of compliance with borrowing covenants which
comprised obtaining and reviewing covenant compliance statements to verify
that no covenant breaches have occurred which may trigger penalties or
repayment of borrowings ahead of the maturity dates;
· obtaining and assessing the Directors plans in respect of funding
lines which are approaching maturity within the next 12 months by considering
the Group's past experience of extending the maturity of facilities, their
discussions with new providers of funding and experience of portfolio sales;
· inspecting the latest post period end management accounts and
reviewed minutes of the meeting to determine if there were any significant
matters which could affect the going concern of the Company.
· reviewing the going concern disclosure in note 1 to the financial
statements to assess that it gives a complete and accurate description of the
Directors' assessment of going concern.
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LENDINVEST SECURED INCOME II PLC (CONTINUED)
Based on the work we have performed, we have not identified any material
uncertainties relating to events or conditions that, individually or
collectively, may cast significant doubt on the Company's ability to continue
as a going concern for a period of at least twelve months from when the
financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Directors with respect to
going concern are described in the relevant sections of this report.
Overview
2025 2024
Determination of expected credit loss (ECL) a a
Valuation techniques of Loans and advances a a
Key audit matters
£1,109,000 (2024: £1,080,000) based on 1% (2024: 1.1%) of total assets
Materiality
Materiality
£1,109,000 (2024: £1,080,000) based on 1% (2024: 1.1%) of total assets
An overview of the scope of our audit
Our Company audit was scoped by obtaining an understanding of the Company and
its environment, including the Company's system of internal control, and
assessing the risks of material misstatement in the financial statements. We
also addressed the risk of management override of internal controls, including
assessing whether there was evidence of bias by the Directors that may have
represented a risk of material misstatement.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were
of most significance in our audit of the financial statements of the current
period and include the most significant assessed risks of material
misstatement (whether or not due to fraud) that we identified, including those
which had the greatest effect on: the overall audit strategy, the allocation
of resources in the audit, and directing the efforts of the engagement team.
These matters were addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
Key audit matter How the scope of our audit addressed the key audit matter
Determination of expected credit loss (ECL) Commensurate with the activities of the Company, the total expected credit As part of our audit procedures in relation to the expected credit loss (ECL)
loss provision is a material balance subject to management judgement and assessment on loans and advances to customers, we performed the following
estimation. procedures:
The Company's accounting policies are disclosed in note 1 with detail about
judgements in applying
We have assessed the elements of the ECL calculation which will significantly Assessed the implementation of the Company's significant increase in credit
accounting policies and critical accounting estimates in note 1. impact the determination of the ECL as follows: risk (SICR)
criteria by conducting staging assessment for a sample of customers across the
credit risk spectrum to test for correct allocation of loans between stages 1
The ECL Provision at year-end is disclosed in Note 8. Accuracy of forward-looking information or 2.
IFRS 9 requires the Company to measure the expected credit loss (ECL) on a For Stage 3 loans, gained an understanding of the cause of default, and
forward-looking basis, incorporating future macro- economic variables assessed that the recovery amounts calculated by management are consistent
reflecting a range of future conditions. The incorporation of such with the value of collaterals held.
forward-looking macroeconomic inputs and weighting of the scenarios is
considered a significant risk across all three portfolios, especially in the
continued downturn of the current economic environment.
On a sample basis, performed our own assessment of the value of collateral,
with the
assistance of our internal valuations' experts.
Reviewed the completeness and accuracy of credit risk disclosures.
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LENDINVEST SECURED INCOME II PLC (CONTINUED)
Loss Given Default of individually assessed Stage 3 (credit impaired) loans - Accuracy of forward-looking information
The carrying value of loans and advances to customers may be materially
misstated if individual impairments are not appropriately identified and
estimated. Estimating these impairment involve complex recoverability
scenarios which involve multiple recovery options where the timing and quantum Our internal credit and econometric experts assisted in assessing the
of recovery are subject to significant management judgements and estimates. appropriateness of the regression models and the source and type of
The probability of scenario weightings can differ materially between macro-economic variables used such as GDP and unemployment data.
individual scenarios and hence is considered an area of significant risk.
We have challenged management on the rationalisation of any changes made to
information obtained from external sources and have assessed its
appropriateness to the current lending portfolio.
We have also assessed the reasonableness of multiple economic scenarios used
and weightings applied by considering the number of scenarios selected based
on management's support.
We have performed sensitivity analysis on the macro-economic variables and
assessed the severity of changes in the macro-economic variables to the
overall ECL. We also benchmarked the macro-economic variables applied in the
models to independent third-party industry data.
Loss Given Default of individually assessed Stage 3 (credit impaired) loans
We have performed detailed assessment on a sample of individual assessment
cases at the 31 March 2025. The assessment included:
- challenge of management on the key inputs into the scenarios by
obtaining supporting evidence for recovery strategies, collateral values, exit
strategies, scenario weighting, expected timing of cash flows and engaging
internal experts as required in support of our assessment;
- challenged management on the key judgements management have applied
in determining the appropriate provision.
We have assessed the accuracy and validity of data that feeds into the
individual assessment cases as well as the progress on the preferred recovery
scenario being pursued to supporting documentation. Based on supporting
evidence assessed and discussions with the credit team, we evaluated and
challenged the judgements applied in the individually assessed Stage 3 loan
assessments. This included assessment of the recovery strategies, recovery
timelines, and the scenario weighting applied in the individual assessments.
Key observations:
Based on our audit work performed, we consider the estimates and judgements
made by management in the calculation of the impairment provision for loans
and advances to be reasonable, and in line with the requirements of IFRS 9..
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LENDINVEST SECURED INCOME II PLC (CONTINUED)
Valuation techniques of loans and advances The Company's business model requires the Company to measure the majority of We have undertaken sensitivity analysis on the discount rates and ascertained
the loan book at Fair value through Other Comprehensive Income which requires how susceptible the fair valuation of the model is to manipulation and
modelling to determine the fair value adjustment to be applied to Loans and material misstatement.
Advances.
The Company's accounting policies are disclosed in note 1 with detail about
judgements in applying accounting policies and critical accounting estimates
on note 1.
With the support of our quantitative solutions expert team, we have assessed
The measurement of the loan book at fair value requires modelling which is management's discount rate and benchmarked it to external data sources where
subject to material management judgments and estimates in the determination of appropriate.
the discount rate used to discount future cashflows.
The Fair Value Adjustment at year-end is disclosed in Note 8.
With the support of our quantitative solutions expert team, we have assessed
The Company's models are materially sensitive to small changes in the discount the models and ensured the discount rates and fair values determined by
rate assumption, particularly in the 'Buy-to-let' portfolio and therefore this management were within our assessed acceptable range.
area is considered a significant risk.
With the support of the data team, we have assessed the accuracy and validity
of the data inputs used in the FV model calculation.
We assessed the adequacy of the related Fair value disclosures in the
financial statements for compliance with the relevant accounting standards,
and agreed the disclosures to underlying supporting documentation
Key observations:
Based on our audit work performed, we consider the valuation of loans and
advances is a reasonable estimate in consideration of the key assumptions and
judgements made.
Our application of materiality
We apply the concept of materiality both in planning and performing our audit,
and in evaluating the effect of misstatements. We consider materiality to be
the magnitude by which misstatements, including omissions, could influence the
economic decisions of reasonable users that are taken on the basis of the
financial statements.
In order to reduce to an appropriately low level the probability that any
misstatements exceed materiality, we use a lower materiality level,
performance materiality, to determine the extent of testing needed.
Importantly, misstatements below these levels will not necessarily be
evaluated as immaterial as we also take account of the nature of identified
misstatements, and the particular circumstances of their occurrence, when
evaluating their effect on the financial statements as a whole.
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LENDINVEST SECURED INCOME II PLC (CONTINUED)
Based on our professional judgement, we determined materiality for the
financial statements as a whole and performance materiality as follows:
Company financial statements
2025 2024
£ £
Materiality £1,109,000 £1,080,000
Basis for determining materiality Materiality is based on 1 % of total assets. Materiality is based on 1.1% of total assets.
Rationale for the benchmark applied The entity is primarily an investment entity as it was established to issue The entity is primarily an investment entity as it was established to issue
listed debt and as a result of proceeds raised issue financing to customers. listed debt and as a result of proceeds raised issue financing to customers.
As such a total assets basis, which in turns drives the funding of the entity, As such a total assets basis, which in turns drives the funding of the entity,
is considered to be the most appropriate. is considered to be the most appropriate.
Performance materiality £832,000 £810,000
Basis for determining performance materiality 75% 75%
Rationale for the percentage applied for performance materiality Determined on the basis of our risk assessment together with our assessment of Determined on the basis of our risk assessment together with our assessment of
the overall control environment the overall control environment
Reporting threshold
We agreed with the Audit Committee that we would report to them all individual
audit differences in excess of £55,000 (2024: £54,000). We also agreed to
report differences below this threshold that, in our view, warranted reporting
on qualitative grounds.
Other information
The directors are responsible for the other information. The other information
comprises the information included in the annual report other than the
financial statements and our auditor's report thereon. Our opinion on the
financial statements does not cover the other information and, except to the
extent otherwise explicitly stated in our report, we do not express any form
of assurance conclusion thereon. Our responsibility is to read the other
information and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our knowledge
obtained in the course of the audit, or otherwise appears to be materially
misstated. If we identify such material inconsistencies or apparent material
misstatements, we are required to determine whether this gives rise to a
material misstatement in the financial statements themselves. If, based on the
work we have performed, we conclude that there is a material misstatement of
this other information, we are required to report that fact.
We have nothing to report in this regard.
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LENDINVEST SECURED INCOME II PLC (CONTINUED)
Other Companies Act 2006 reporting
Based on the responsibilities described below and our work performed during
the course of the audit, we are required by the Companies Act 2006 and ISAs
(UK) to report on certain opinions and matters as described below.
Strategic report and Directors' report In our opinion, based on the work undertaken in the course of the audit:
· the information given in the Strategic report and the Directors'
report for the financial year for which the financial statements are prepared
is consistent with the financial statements; and
· the Strategic report and the Directors' report have been prepared
in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company
and its environment obtained in the course of the audit, we have not
identified material misstatements in the strategic report or the Directors'
report.
Matters on which we are required to report by exception We have nothing to report in respect of the following matters in relation to
which the Companies Act 2006 requires us to report to you if, in our opinion:
· adequate accounting records have not been kept by the Company, or
returns adequate for our audit have not been received from branches not
visited by us; or
· the Company financial statements and the part of the Directors'
remuneration report to be audited are not in agreement with the accounting
records and returns; or
· certain disclosures of Directors' remuneration specified by law
are not made; or
· we have not received all the information and explanations we
require for our audit.
Responsibilities of Directors
As explained more fully in the Directors' responsibilities statement, the
Directors are responsible for the preparation of the financial statements and
for being satisfied that they give a true and fair view, and for such internal
control as the Directors determine is necessary to enable the preparation of
financial statements that are free from material misstatement, whether due to
fraud or error.
In preparing the financial statements, the Directors are responsible for
assessing the Company's ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis
of accounting unless the Directors either intend to liquidate the Company or
to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to
fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with ISAs (UK) will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and
are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on
the basis of these financial statements.
Extent to which the audit was capable of detecting irregularities, including
fraud
Irregularities, including fraud, are instances of non-compliance with laws and
regulations. We design procedures in line with our responsibilities, outlined
above, to detect material misstatements in respect of irregularities,
including fraud. The extent to which our procedures are capable of detecting
irregularities, including fraud is detailed below:
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LENDINVEST SECURED INCOME II PLC (CONTINUED)
Non-compliance with laws and regulations
Based on:
· Our understanding of the Company and the industry in which it
operates;
· Discussion with management and those charged with governance; and
· Obtaining and understanding of the Company's policies and
procedures regarding compliance with laws and regulations.
we considered the significant laws and regulations to be:
· Companies Act 2006;
· UK tax legislation
· UK-adopted International Accounting Standards
The Company is also subject to laws and regulations where the consequence of
non-compliance could have a material effect on the amount or disclosures in
the financial statements, for example through the imposition of fines or
litigations. We identified such laws and regulations to be the Financial
Conduct Authority rules and the General Data Protection Regulation (GDPR).
Our procedures in respect of the above included:
· obtaining an understanding of the control environment in
monitoring compliance with laws and regulations;
· reviewing the financial statement disclosures and testing to
supporting documentation to assess compliance with the relevant laws and
regulations discussed above;
· enquiring of management and those charged with governance about
their own identification and assessment of the risks of irregularities,
including fraud;
· reviewing of legal expenditure accounts to understand the nature
of expenditure incurred; and
reviewing of minutes of meetings of those charged with governance and
correspondence with the Financial Conduct Authority.
Fraud
We assessed the susceptibility of the financial statements to material
misstatement, including fraud. Our risk assessment procedures included:
· enquiry with management and those charged with governance
including the Audit Committee regarding any known or suspected instances of
fraud;
· obtaining an understanding of the Company's policies and
procedures relating to:
o Detecting and responding to the risks of fraud; and
o Internal controls established to mitigate risks related to fraud.
· review of minutes of meeting of those charged with governance for
any known or suspected instances of fraud;
· discussion amongst the engagement team as to how and where fraud
might occur in the financial statements;
· performing analytical procedures to identify any unusual or
unexpected relationships that may indicate risks of material misstatement due
to fraud; and
· considering remuneration incentive schemes and performance
targets and the related financial statement areas impacted by these.
Based on our risk assessment, we considered the areas most susceptible to
fraud to be management override of controls and in relation to accounting
estimates within expected credit loss and Fair value of loss.
Our procedures in respect of the above included:
· testing a sample of journal entries throughout the year, which
met a defined risk criteria, by agreeing to supporting documentation;
· Involvement of forensic specialists in the audit to review our
risk assessment on fraud risks identified;
· involvement of internal credit, econometric experts and internal
valuation experts in the areas of high estimation by management such as ECL
and Loans and Advances Valuation which is covered in KAM under 'Determination
of ECL and Valuation Techniques of Loans and Advances;
· evaluating the business rationale of any significant transactions
that are unusual or outside the normal course of business.
· Assessing significant estimates made by management for bias which
is covered in the KAM under ' 'Determination of ECL' and 'Valuation techniques
of loans and advances'.
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LENDINVEST SECURED INCOME II PLC (CONTINUED)
We also communicated relevant identified laws and regulations and potential
fraud risks to all engagement team members who were all deemed to have
appropriate competence and capabilities and remained alert to any
indications of fraud or non-compliance with laws and regulations throughout
the audit.
Our audit procedures were designed to respond to risks of material
misstatement in the financial statements, recognising that the risk of not
detecting a material misstatement due to fraud is higher than the risk of not
detecting one resulting from error, as fraud may involve deliberate
concealment by, for example, forgery, misrepresentations or through collusion.
There are inherent limitations in the audit procedures performed and the
further removed non-compliance with laws and regulations is from the events
and transactions reflected in the financial statements, the less likely we are
to become aware of it.
A further description of our responsibilities is available on the Financial
Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities
(http://insite.bdo.co.uk/sites/audit/Documents/www.frc.org.uk/auditorsresponsibilities)
. This description forms part of our auditor's report.
Use of our report
This report is made solely to the Company's members, as a body, in accordance
with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been
undertaken so that we might state to the Company's members those matters we
are required to state to them in an auditor's report and for no other
purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company's members as a body, for our
audit work, for this report, or for the opinions we have formed.
Stefan Beyers (Senior Statutory Auditor)
For and on behalf of BDO LLP, Statutory Auditor
London, United Kingdom
30 July 2025
BDO LLP is a limited liability partnership registered in England and Wales
(with registered number OC305127).
STATEMENT OF PROFIT AND LOSS
FOR THE YEAR ENDED 31 MARCH 2025
Note 2025 2024
£'000 £'000
Interest income calculated using the effective interest rate 10,670 6,383
Interest expense and similar charges 4 (8,675) (5,268)
Net Interest Income 1,995 1,115
Administrative expenses (81) (31)
Impairment provisions 8 (1,517) (2,069)
Profit/(loss) before tax 397 (985)
Tax charge 7 - -
Profit/(loss) for the year 397 (985)
All amounts relate entirely to continuing activities and to owners of the
Company.
The notes on pages 25 to 52 form an integral part of these financial
statements.
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025
Note 2025 2024
£'000 £'000
Profit/(loss) for the period 397 (985)
Fair value gain/(loss) on loans and advances measured at fair value through 3
other comprehensive income
183
Deferred tax (charge)/credit 7 (1) (46)
Other comprehensive income 2 (137)
Total comprehensive profit/(loss) for the period 399 (848)
The notes on pages 25 to 52 form an integral part of these financial
statements.
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2025
Note 2025 2024
£'000 £'000 (Restated)
Assets
Cash and cash equivalents 70 685
Other receivables 10 - 183
Receivables from related parties 10 76,232 67,061
Loans and advances 8 34,527 31,064
Total assets 110,829 98,993
Liabilities
Other payables 11 (237) (18,082)
Payables from related parties (20,954) (259)
Corporation tax payable 7 - -
Interest bearing liabilities 12 (90,059) (81,473)
Deferred tax liability 9 (26) (25)
Total liabilities 111,276 (99,839)
Net assets (447) (846)
Equity
Share capital 14 50 50
Fair value reserves 15 77 75
Retained (loss)/earnings (574) (971)
Total equity (447) (846)
The notes on pages 25 to 52 form an integral part of these financial
statements.
The financial statements were approved by the Board of Directors and
authorised for issue on 30 July 2025, they were signed on its behalf by:
Roderick Lockhart Director
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
Share capital Fair Value reserves Retained (loss)/earnings Total
£'000 £'000 £'000 £'000
Balance as at 01 April 2023 50 (62) 14 2
Issue of shares - - - -
Profit for the period - - (985) (985)
Other comprehensive loss(1) - 137 - 137
Total comprehensive loss - 137 (985) (848)
Balance at 31 March 2024 50 75 (971) (846)
Issues of shares - - - -
Profit for the period - - 397 397
Other comprehensive income(1) - 2 - 2
Total comprehensive income - 2 397 399
Balance at 31 March 2025 50 77 (574) (447)
1 Other comprehensive income consists of fair value adjustments on loans and
advances through OCI £3k (2024 £183k) less deferred tax charge £1k (2024
£46k).
The notes on pages 25 to 52 form an integral part of these financial
statements.
STATEMENT OF CASH FLOW
FOR THE YEAR ENDED 31 MARCH 2025
2025 2024
£'000 £'000
Cash flow from operating activities
Profit/(loss) for the period 397 (985)
Adjusted for:
Tax charge 7 - -
Impairment provision 8 1,517 2,069
Amortisation of pre-paid funding costs 519 381
Accrued interest expenses 434 2,724
Intercompany lending interest income (5,541) (3,063)
Working capital adjustments
Increase in loans and advances 8 (4,976) (9,552)
Increase in receivables from related parties and other receivables 10 (3,448) (49,057)
Increase in trade and other payables 11 2,850 17,965
Net cash flow from operating activities (8,248) (39,518)
Cash flows from financing activities
Increase in interest bearing liabilities 12 - 31,323
Proceeds from issuance of retail bonds 7,650 9,665
Cost of bond issuance (17) (814)
Net cash flow from financing activities 7,633 40,174
Net increase in cash and cash equivalents (615) 656
Cash and cash equivalents at start of period(1) 685 29
Cash and cash equivalents at end of period(1) 70 685
Interest received was £10.3million (2024: £6.2million) and interest paid was
£8.1million (2024: £4.9million).
(1)Cash and cash equivalents wholly consists of cash held within bank accounts
which is immediately accessible.
The notes on pages 25 to 52 form an integral part of these financial
statements.
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
1 Accounting policies General information
LendInvest Secured Income II PLC is a public company limited by share capital
which was incorporated on 26 April 2022 in England and Wales and is domiciled
in the United Kingdom under the Companies Act 2006. The address of its
registered office is given on page 1.
The principal activity of the Company was to provide secured lending to third
party borrowers in the United Kingdom.
The Company is a 100% subsidiary of LendInvest Loan Holdings Limited (which is
in turn a 100% subsidiary of LendInvest PLC) and its results are included in
the consolidated financial statements of the Group.
Basis of accounting
The financial statements have been prepared in accordance with the Companies
Act 2006 and the UK-adopted International accounting standards.
The financial statements have been prepared on a historical cost basis, except
as required in the valuation of certain financial instruments which are
carried at fair value. The preparation of financial statements, in conformity
with IFRS, requires the use of certain critical accounting estimates. It also
requires management to exercise its judgement in the process of applying the
Company's accounting policies. The areas involving a higher degree of
judgement or complexity, or areas where assumptions and estimates are
significant to the financial statements, are disclosed in note 1. The
financial statements have been prepared on a going concern basis, see note 1
for further details.
Items included in the financial statements are measured using the currency of
the primary economic environment in which the Company operates ("functional
currency"). The Company maintains its books and records in pound sterling
("£") and its financial statements are presented in pounds sterling, which is
the Company's functional currency. All amounts have been rounded to the
nearest thousand, unless otherwise indicated.
New standards not yet effective
The IASB has issued a number of amendments to reporting standards which the
Company has determined as being applicable to its financial reporting. These
amendments are effective in future accounting periods and the Company has not
opted for any early adoption. The following amendments are effective for the
period beginning on or after 1 April 2025 and are not expected to have a
material impact on the Company:
• Amendments to the Classification and Measurement of
Financial Instruments (Amendments to IFRS 9 Financial Instruments and IFRS7);
• Contracts referencing nature-dependent Electricity
(Amendments to IFRS9 and IFRS7);
• IFRS 18 Presentation and Disclosure in Financial
Statements; and
• IFRS 19 Subsidiaries without Public Accountability:
Disclosures.
• Classification of Liabilities as Current or Non-Current
(Amendments to IAS 1 Presentation of Financial Statements);
• Non-Current Liabilities with Covenants (Amendments to IAS
1 Presentation of Financial Statements);
• Supplier Finance Arrangements (Amendments to IAS 7
Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures) and
• Lack of Exchangeability (Amendments to IAS 21 The Effects
of Changes in Foreign Exchange Rates)
NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEAR ENDED 31 MARCH
2025
1 Accounting policies - (continued)
Revenue recognition
Revenue represents interest and other income from borrowers and for the
provision of finance. Revenue recognised on loans held by related and third
parties is recognised as follows:
Recognised under IFRS 9
· Interest income calculated using the effective interest rate
Interest on loans and advances made by the group is recognised in the
Consolidated statement of profit and loss using the effective interest rate
method. Under the effective interest rate method fees earned from borrowers
and transaction costs incurred which are integral to the creation of a loan
such as arrangement, valuation and broker fees are amortised over the expected
life of the loan.
· Fee income relates to intermediary fees charged between
Lendinvest Limited and the Company.
Revenue comprises the fair value of the consideration received or receivable
in the ordinary course of the Company's activities.
All revenue recorded in the financial statements is generated in the UK and
sourced from transactions relating to property loans. Fees on these
transactions are calculated based on the above revenue recognition policy.
Interest expense and similar charges
This represents interest expenses on interest bearing liabilities which are
accounted for under IFRS 9 on an effective interest rate (EIR) basis,
inclusive of directly attributable incremental transaction costs and fees
including structuring fees, uncommitted fees, and set up costs (legal fees).
Administrative expenses
Expenses are recognised in the statement of profit and loss in the period in
which they are incurred (on an accruals basis).
Cash and cash equivalents
Cash and cash equivalents comprise of cash balances and balances with a
maturity of three months or less from the acquisition date which are readily
convertible to known amounts of cash and which are subject to an insignificant
risk of changes in value.
Financial Instruments
As per IFRS 9, the Group classifies its financial instruments with reference
to both the Group's business model for managing the assets and the contractual
cash flow characteristics of the instrument.
Financial assets
(i) At amortised cost
These are assets for which the business model is to hold the asset and collect
the contractual cash flows. The cash flows are solely payments of principal
and interest and are on specified dates.
The Company measures drawn loans and advances held under this business model,
cash and cash equivalents and trade and other receivables at amortised cost.
On initial recognition the asset is held at its fair value minus any
transaction costs. Subsequent measurement is calculated on the effective
interest rate method and is subject to impairment where the recoverable value
falls below the carrying value. This assessment is performed quarterly.
(ii) At fair value through other comprehensive income
These are assets for which the business model is to collect the contractual
cash flows and to sell the assets. The contractual cash flows are solely
payments of principal and interest and are on specified dates.
The Company measures drawn loans and advances held under this business model
at fair value through other comprehensive income.
These assets are initially recognised at fair value, plus any attributable
costs. Subsequent changes in fair value are recognised in equity, except for
impairment losses which are recognised in the Consolidated statement of profit
and loss.
For further information on the measurement of impairment losses, please see
note 8.
Upon derecognition, any accumulated movements in fair value previously
recognised in equity (fair value reserve) are reclassified to profit or loss
in the consolidated statement of profit and loss.
NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEAR ENDED 31 MARCH
2025
1 Accounting policies - (continued)
Financial Instruments - (continued)
(iii) At fair value through profit or loss
These are assets for which the business model is neither to hold nor to hold
or sell, or where contractual cash flows are not solely payments of principal
and interest. The Company designates loan commitments as financial liabilities
at fair value through profit or loss. The assets that result on origination of
the loans are initially recognised at fair value, adjusting for the recorded
fair value to date.
Financial liabilities
(iii) At amortised cost
All financial liabilities are measured at amortised cost, unless IFRS 9
specifically determines they should be valued at fair value through profit or
loss. The Group holds trade and other payables and interest-bearing
liabilities at amortised cost. On initial recognition the liability is held at
its fair value plus any transaction costs. Subsequent measurement is based on
the effective interest rate method.
(iv) At fair value through profit or loss
Financial liabilities are measured at fair value through profit or loss when
they meet the definition of held for trading, or when they are designated as
such to eliminate or significantly reduce an accounting mismatch that would
otherwise arise.
Forbearance
The Company maintains a forbearance policy for the servicing and management of
customers who are in financial difficulty and require some form of concession
to be granted, even if this concession entails a loss for the Group. A
concession may be either of the following:
· A modification of the previous terms and conditions of an
agreement, which the borrower is considered unable to comply with due to its
financial difficulties, to allow for sufficient debt service ability, that
would not have been granted had the borrower not been in financial
difficulties; or
· A modification of the previous terms and conditions of an
agreement, which the borrower is considered unable to comply with due to its
financial difficulties, to allow for sufficient debt service ability, that
would not have been granted had the borrower not been in financial
difficulties; or
Forbearance in relation to an exposure can be temporary or permanent
depending on the circumstances, progress on financial rehabilitation and the
detail of the concession(s) agreed. The Company excludes short-term repayment
plans that are up to three months in duration from its definition of forborne
loans.
Modification of financial assets and financial liabilities
When a financial asset or financial liability is modified, a quantitative and
qualitative evaluation is performed to assess whether or not the new terms are
substantially different to the original terms. For financial assets, the
Company considers the specific circumstances including:
· If the borrower is in financial difficulty, whether the
modification merely reduces the contractual cash flows to amounts the borrower
is expected to be able to pay;
· Whether any substantial new terms are introduced that
substantially affects the risk profile of the loan;
· Significant extension of the loan term when the borrower is not
in financial difficulty;
· Significant change in the interest rate; and
· Insertion of collateral, other security or credit enhancements
that significantly affect the credit risk associated with the loan.
The Company specifically, but not exclusively, considers the outcome of the
'10% test'. This involves a comparison of the cash flows before and after the
modification, discounted at the original EIR (Effective interest rate),
whereby a difference of more than 10% indicates the modification is
substantial.
If the terms and cash flows of the modified financial instrument are deemed to
be substantially different, the derecognition criteria are met and the
original financial instrument is derecognised and a 'new' financial instrument
is recognised at fair value. The difference between the carrying amount of the
derecognised financial instrument and the new financial instrument with
modified terms is recognised in the statement of profit and loss.
If the terms and cash flows of the modified financial instrument are not
deemed to be substantially different, the financial instrument is not
derecognised and the Company recalculates the 'new' gross carrying amount of
the financial instrument based on the revised cash flows of the modified
financial instrument discounted at the original EIR and recognises any
associated gain or loss in the statement of profit and loss. Any costs and
fees incurred are recognised as an adjustment to the carrying amount of the
financial instrument and are amortised over the remaining term of the modified
financial instrument by recalculating the EIR on the financial instrument.
NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEAR ENDED 31 MARCH
2025
1 Accounting policies - (continued)
Financial Instruments - (continued)
Derecognition of financial assets and liabilities
Financial instruments are only derecognised when the contractual
rights/obligations to receive/deliver cash flows from them have expired or
when the Company has transferred substantially all risks and rewards of
ownership.
Interest income and expense
Interest income and expense on all financial instruments is recognised in
interest receivable or payable in the statement of profit and loss. Interest
income, any fees considered an integral part of effective interest rate of the
loan and interest expense are calculated using the effective interest rate
method for financial assets and liabilities held at amortised cost and at
FVOCI.
The effective interest rate method is a method of allocating the interest
income or interest expense over the relevant period. The effective interest
rate is the rate that exactly discounts estimated future cash payments or
receipts through the expected life of the financial asset or financial
liability to the gross carrying amount of a financial asset or to the
amortised cost of a financial liability.
Specifically, for loans and advances, the effect of this policy is to spread
arrangement, broker and valuation fees, and costs directly attributable and
incremental to setting up the loan, over the expected life of the contractual
period.
Current and deferred tax
The tax expense for the period comprises current and deferred tax. Current tax
is provided at amounts expected to be paid (or recovered) using the tax rates
and laws that have been enacted or substantively enacted by the period end
date.
Deferred income tax is provided in full, using the liability method, on
temporary differences arising between the tax bases of assets and liabilities
and their carrying amounts in the financial statements. However, deferred tax
is not accounted for if it arises from initial recognition of an asset or
liability in a transaction other than a business combination that at the time
of the transaction affect neither accounting nor taxable profit and loss.
Deferred tax is determined using tax rates and laws that have been enacted or
substantially enacted at the year-end date and are expected to apply when the
related deferred tax asset is realised, or the deferred tax liability is
settled. Deferred tax balances are not discounted. Deferred tax assets are
recognised to the extent that it is probable that future taxable profit will
be available against which the temporary differences can be utilised.
Going concern
The Group's business activities, along with the factors likely to affect its
future development and financial position, are detailed in the Strategic
Report. The Directors have assessed the Group's funding position and confirm
that no committed funding lines mature within 12 months from the date of
approval of these financial statements.
Directors have a reasonable expectation that the Group will have adequate
resources to continue to operate for a period of at least 12 months from the
signing of these accounts including severe yet plausible downside scenarios
that Group will have sufficient funds to meets its liabilities as they fall
due for that period. Therefore, it is on this basis that the Directors have
continued to prepare the accounts on a going concern basis. More information
on the Directors' assessment of going concern is set out in the Directors'
report.
Critical accounting estimates and judgements
The preparation of these financial statements in accordance with IFRS requires
the use of estimates. It also requires management to exercise judgement in
applying the accounting policies.
NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEAR ENDED 31 MARCH
2025
1 Accounting policies - (continued)
Critical judgements in applying the Company's accounting policies
Significant increase in credit risk
The determination of how significant an increase in lifetime PD should be to
trigger a move between credit risk stages for impairment requires significant
judgement. Management have adopted a test-based approach to derive objective
thresholds such that credit deterioration is recognised at the appropriate
point. Similarly significant judgement is also applied when assessing the risk
of a default occurring following the modification of a financial asset that
does not result in derecognition.
Fair value measurement
Judgements were applied to determine the unobservable inputs to the fair value
models used to calculate the fair values of loans and advances. These include
the discount rate, prepayment rates, PDs, LGDs (Loss given default), recovery
costs and cure probabilities driven from the ECL models.
Estimates and assumptions
Fair value measurement
A number of assets and liabilities included in the Company's financial
statements require disclosure of fair value such as loans and advances and
interest bearing liabilities. The fair value measurement of the Company's
financial and non-financial assets and liabilities utilises market observable
inputs and data as far as possible. Inputs used in determining fair value
measurements are categorised into different levels based on how observable the
inputs used in the valuation technique utilised are ('the fair value
hierarchy'):
Level 1: Quoted prices in active markets for identical assets;
Level 2: Observable direct or indirect inputs other than Level 1 inputs;
Level 3: Unobservable inputs (i.e., not derived from market data and require a
level of estimates and judgements within the model).
For further discussion around the key estimates and sensitivity, please refer
to note 14.
Expected Credit Loss Calculation
The accounting estimates with the most significant impact on the calculation
of impairment loss provisions under IFRS 9 are macroeconomic variables, in
particular UK house price inflation and unemployment, and the probability
weightings of the macroeconomic scenarios used. The Group has used three
macroeconomic scenarios, which are considered to represent a range of possible
outcomes over a normal economic cycle, in determining impairment loss
provisions:
The baseline scenario reflects the most profitable economic outlook, the
downside scenarios account for plausible stress conditions and an upside
scenario representing the impact of modest improvements to assumptions used in
the baseline scenario.
For the period ended 31 March 2025 management have applied 40%/40%/20% to the
central, downside and upside scenarios respectively.
Changes to macroeconomic assumptions, as expectations change over time, are
expected to lead to volatility in impairment loss provisions and may lead to
pro-cyclicality in the recognition of impairment provisions.
Sensitivity Analysis
Sensitivity analysis on the ECL models has been completed. Due to the high
number of loans which are individually assessed, the model demonstrates very
low levels of sensitivity, as can be seen from the two changes below:
• An 10% increase in the forced sale discount.
This would increase the ECL by £0.7m (2024 £0.2m).
• A 100% downside was applied to all the models.
This would increase the ECL by £2.8m (2024 £0.3m).
• A 100% upside was applied to all the models.
This would decrease the ECL by £1.0m (2024 £0.6m).
NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEAR ENDED 31 MARCH
2025
1 Accounting policies - (continued)
Critical judgements and accounting estimates - (continued)
Write-offs
Loans and advances are written off (either partially or in full) when there is
no reasonable prospect of recovery. This is generally the case when the
primary security has been realised and the Company is unable to reach an
agreement with the borrower for immediate or short-term repayment of the
amounts subject to the write-off. Write-offs constitute a derecognition event
as detailed under Financial Instruments in note 1. Financial assets that are
written off can still be subject to enforcement activities in order to recover
amounts due. Amounts subsequently recovered on assets previously written off
are recognised in impairment losses on financial assets in the statement of
profit and loss.
Funding
All borrowings are initially recorded at fair value plus any transaction
costs. Borrowings are subsequently measured using the effective interest rate
method. The interest is calculated using effective interest rate method and
recognised to the income statement over the period of the relevant borrowing.
Borrowings are classified as current liabilities unless the Company has an
unconditional right to defer settlement of the liability for at least 12
months after the reporting date.
Intermediary fees
Intermediary fees are charged by the ultimate parent, LendInvest PLC. This
charge relates to the service provided by the group, in terms of management
oversight, use of intellectual property and an allocation of costs incurred by
the group, among various subsidiaries. This fee is based on a discretionary
basis after due consideration on tax and regulatory requirements. This
includes consideration made to pre-tax positions on the profit and loss of the
entity and minimum cash balances to be maintained as a result of regulatory
requirements.
Changes in the presentation of the Statement of Financial Position
During the year ended 31 March 2025 the company amended the statement of
financial position for additional clarity in the numbers being presented. The
table below illustrates the effect of the reclassification in the comparative
before restatement:
Year ended 31 March 2024
Trade and other payables 18,341
Amounts reclassified to other payables 259
Amounts reclassified to payables 18,082
This reclassification has no impact on the net assets of the Company.
NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEAR ENDED 31 MARCH
2025
2 Financial risk management
The Board has the overall responsibility for the establishment and oversight
of the Company's risk management framework. The risk management policies are
established to identify and analyse the risks faced by the Company, to set
appropriate risk limits and controls, and to monitor risks and ensure any
limits are adhered to. The Company's activities are reviewed regularly, and
potential risks are considered. The overall objective of the Board is to set
policies that seek to reduce risk as far as possible without unduly affecting
the business's competitiveness and flexibility.
The Company has exposure to the following risks from its use of financial
instruments: credit risk, liquidity risk, market risk:
Credit risk management
Credit risk is the risk that the Company's loans and advances are subject to
borrower default. It arises principally from the Company's loans and advances
to customers, receivables from related parties and cash and cash equivalents
held at banks. The Company's maximum exposure to credit risk by class of
financial asset is as follows:
2025 2024
Assets £'000 £'000
Gross loans and advances 37,743 32,894
Cash and cash equivalents 70 685
Other receivables - 183
Receivables from related parties 76,232 67,061
Total 114,045 100,823
Credit risk management lies at the core of the business and the Company has
continued to develop its strong credit risk management framework which
includes:
• a clearly defined credit risk policy;
• the continued recruitment of specialist skills in credit
underwriting;
• a Credit Committee which meets monthly; and
• an Impairment & Modelling Committee - specifically
formed for the governance of IFRS 9 - which meets quarterly.
The Company manages its exposure to credit losses by assessing borrowers'
affordability of loan repayments, risk profile, and stability during the
underwriting process. Impairments are monitored and provided for under IFRS 9.
The credit policy is designed to ensure that the credit process is efficient
for the applicant while providing the Group with the necessary details to make
an informed credit decision.
The fair value of cash and cash equivalents at 31 March 2025 and 31 March 2024
approximates the carrying value. Credit risk relating to cash and cash
equivalents is mitigated as cash and cash equivalents are held with reputable
institutions. These institutions have a Moody's credit rating of Prime-1
(superior ability to repay short-term debt obligations).
The risk of movements in the price of the underlying collateral secured by the
Company against loans to borrowers is actively managed by the Company.
Security over loan collateral is registered with the Land Registry, and only
properties within England, Wales and Scotland are suitable for security. Loans
are capped at 85% of the open market value of the property against which
security is held, and minimum loan period interest is retained on completion
for some short-term loans.
NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEAR ENDED 31 MARCH
2025
2 Financial risk management - (continued)
Liquidity risk management
There is a risk that the Company will not be able to meet its financial
obligations as they fall due. The Company's approach to managing liquidity is
to ensure, as far as possible, that it will always have sufficient liquidity
to meet its liabilities when they fall due, under both normal and stressed
conditions, without incurring unacceptable losses or risking damage to the
Company's position. The Company's liquidity position is monitored and reviewed
on an ongoing basis by the directors and management.
The table below analyses the Company's contractual undiscounted cash flows of
its financial assets and liabilities:
Amount due in Amount due in Amount due
Carrying amount Gross nominal inflow less than six six to twelve between one to
/ (outflow) months months five years
At 31 March 2025 £'000 £'000 £'000 £'000 £'000
Financial assets
Cash and cash equivalents 70 70 70 - -
Receivables from related parties 76,232 87,089 3,150 25,731 58,208
loans and advances 34,527 35,893 24,460 11,433 -
Total 110,829 123,052 27,680 37,164 58,208
Financial liabilities
Other payables (237) (237) (237) - -
Payables to related parties (20,954) (21,296) (35) (20,726) (535)
Interest bearing liabilities (90,059) (102,333) (4,092) (4,070) (94,171)
Total (111,250) (123,866) (4,364) (24,796) (94,706)
At 31 March 2024
Financial assets
Cash and cash equivalents 685 685 685 - -
Receivables from related parties 67,061 81,422 2,415 24,250 54,757
Other receivables 183 183 183 - -
Loans and advances 31,064 31,849 24,201 7,572 76
Total 98,993 114,139 27,484 31,822 54,833
Financial liabilities
Other payables (259) (259) (259)
Trade and other payables (18,082) (18,082) (18,082) - -
Interest bearing liabilities (81,473) (98,841) (3,603) (3,583) (91,655)
Total (99,814) (117,182) (21,944) (3,583) (91,655)
All gross nominal inflows and outflows on financial assets and financial
liabilities are due within 5 years at the reporting date.
NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEAR ENDED 31 MARCH
2025
3 Segmental analysis
The Company's lending operations are carried out solely in the UK, and
effective from 1 April 2023, were carried out solely from the Company's
LendInvest Mortgages and Capital Divisions, reflective of the product
offerings. The results and net assets of the Group are derived from the
provision of property related loans only. The following describes the
operations of the two reportable segments for the year ended 31 March 2025:
LendInvest Mortgages
LendInvest Mortgages provides mortgages to both professional BTL landlords and
homeowners as well as a range of short term mortgages.
LendInvest Capital
The LendInvest Capital division provides larger, more structured finance
primarily to property developers and larger Bridging
loans and houses the Fund and Self-Select Platform.
Please see below for a segmental analysis of the profit and loss and statement
of financial position balances:
Year ended 31 March 2025 Mortgages Capital Central Total
Statement of profit and loss information £'m £'m £'m £'m
Interest income calculated using the effective interest rate 2,615 8,055 - 10,670
Interest expense and similar charges (570) (8,105) - (8,675)
Net interest income 2,045 (50) - 1,995
Administrative expenses (25) (6) (50) (81)
Impairment provisions (219) (1,298) - (1,517)
Profit/(loss) before tax 1,801 (1,354) (50) 397
Year ended 31 March 2024 Mortgages Capital Central Total
Statement of profit and loss information £'m £'m £'m £'m
Interest income calculated using the effective interest rate 1,024 5,359 - 6,383
Interest expense and similar charges (1,142) (4,126) - (5,268)
Net interest income (118) 1,233 - 1,115
Administrative expenses - - (31) (31)
Impairment provisions (206) (1,863) - (2,069)
Loss before tax (324) (630) (31) (985)
As at 31 March 2025 Mortgages Capital Central Total
Statement of financial position information £'m £'m £'m £'m
Assets
Cash and cash equivalents - - 70 70
Receivables from related parties - - 76,232 76,232
Loans and advances 9,107 25,420 - 34,527
Total assets 9,107 25,420 76,302 110,829
Liabilities
Other payables - - (237) (237)
Payables from related parties - - (20,954) (20,954)
Interest bearing liabilities - - (90,059) (90,059)
Deferred tax liability - - (26) (26)
Total liabilities - - (111,276) (111,276)
NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEAR ENDED 31 MARCH
2025
3 Segmental analysis (continued)
As at 31 March 2024 Mortgages Capital Central Total
Statement of financial position information £'m £'m £'m £'m
Assets
Cash and cash equivalents - - 685 685
Other receivables - - 183 183
Receivables from related parties - - 67,061 67,061
Loans and advances 4,756 26,308 - 31,064
Total assets 4,756 26,308 67,929 98,993
Liabilities
Other payables - - (259) (259)
Trade and other payables - - (18,082) (18,082)
Interest bearing liabilities - - (81,473) (81,473)
Deferred tax liability - - (25) (25)
Total liabilities - - (99,839) (99,839)
4 Interest expense and similar charges
2025 2024
£'000 £'000
Interest Expense 8,157 4,887
Funding Line Costs 518 381
8,675 5,268
5 Auditor's remuneration
2025 2024
£'000 £'000
Audit of financial statements 35 34
35 34
Fees payable to the Company's auditors for audit services of £34,600 in the
current year are borne by LendInvest PLC and disclosed in note 10 of the
consolidated financial statements of the Group.
6 Staff costs
Key management personnel compensation
Key management personnel, whom are only the Directors, are those persons
having authority and responsibility for planning, directing and controlling
the activities of the Company.
2025 2024
£'000 £'000
Salary, short-term benefits and pension 755 830
Equity Based compensation - -
755 830
The Company employed no employees for the year ended 31 March 2025. The
Directors' emoluments are paid by LendInvest PLC. The highest paid Director
had emoluments of £469k for the year ended 31 March 2025.
NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEAR ENDED 31 MARCH
2025
7 Taxation
Tax charge
The charge/(credit) for the period in the statement of profit and loss and
other comprehensive income
Tax related to items charged or credited to the statement of profit and loss:
2025 2024
£'000 £'000
Current taxation
UK corporation tax - -
Adjustment in respect of prior years - -
Deferred Taxation
Origination and reversal of temporary differences - -
Total deferred income tax charge - -
Total tax charge - -
Deferred tax 2025 2024
£'000 £'000
Fair value movement on loans and advances 1 46
Tax credit in the statement of other comprehensive income 1 46
The tax on profit before tax for the period is the same as the standard rate
of corporation tax in the UK of 25%. The differences are reconciled below:
2025 2024
£'000 £'000
Profit/(loss) before tax 397 (985)
Corporation tax at standard UK corporation tax rate of 25% 99 (246)
Utilisation of group relief for carried forward losses (99) 246
Total tax charge - -
NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEAR ENDED 31 MARCH
2025
8 Loans and advances
2025 2024
£'000 £'000
Gross loans and advances 37,743 32,894
ECL provision (3,320) (1,931)
Fair value adjustment 104 101
Loans and advances 34,527 31,064
Fair value adjustment to gross loans and advances due to classification as
FVOCI, based on the Company's business model for managing these financial
assets.
ECL Provision
2025 2024
£'000 £'000
Movement in the period
Under IFRS 9 at the beginning of the period 1,931 43
Additional provisions made during the period(1) 2,015 2,142
Utilised in the period(2) (626) (254)
Under IFRS at the end of the period 3,320 1,931
(1)The ECL provision of £3,320k is stated including the expected credit
losses incurred on the interest income recognised on loans and advances. The
net ECL impact on the statement of profit and loss is £1,517k. This has
increased due to a number of loans falling into default in the year. Expected
credit losses have been calculated using internal modelling and outcome
statements on the loans in question.
This includes the £1,517k of impairment provisions shown in the statement of
profit and loss and the total impact of expected credit losses on income
recognised on loans and advances using the effective interest rate of £497k.
(2)Loans that are written off can still be subject to enforcement activities
in order to comply with the Company's procedures for recovery of amounts due.
The contractual amount outstanding on loans and advances that were written off
during the reporting period and are still subject to enforcement activity is
nil.
NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEAR ENDED 31 MARCH
2025
8 Loans and advances - (continued)
Analysis of loans and advances by stage
Stage 1 Stage 2 Stage 3 Total
Period ended 31 March 2024 £'000 £'000 £'000 £'000
Gross loans and advances 7,444 50 25,400 32,894
ECL (5) - (1,926) (1,931)
Fair value adjustment 109 - (8) 101
Loans and advances 7,548 50 23,466 31,064
Year ended 31 March 2025
Gross loans and advance 9,878 5,224 22,641 37,743
ECL (7) (2) (3,311) (3,320)
Fair value adjustment 34 21 49 104
Loans and advances 9,905 5,243 19,379 34,527
The maximum LTV on stage 1 loans is 85% (2024: 81%). The maximum LTV on stage
2 loans is 75% (2024: 76%). The maximum LTV on stage 3 loans is 75% (2024:
85%).
NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEAR ENDED 31 MARCH
2025
8 Loans and advances - (continued)
Movement analysis of net loans by stage
Stage 1 Stage 2 Stage 3 Total
£'000 £'000 £'000 £'000
As at 01 April 2023 8,126 15,271 - 23,397
Transfer to stage 1 - - - -
Transfer to stage 2 (1,917) 1,917 - -
Transfer to stage 3 (2,604) (7,510) 10,114 -
New financial assets originated 7,258 - - 7,258
New financial assets originated and transferred to stage 2 & stage 3 (51) 51 - -
Financial assets which have repaid (2,249) (7,763) - (10,012)
Balance movements in loans (1,015) (1,916) 13,352 10,421
Write offs - - - -
Total movement in loans and advances (578) (15,221) 23,466 7,667
As at 31 March 2024 7,548 50 23,466 31,064
Transfer to stage 1 - - - -
Transfer to stage 2 (3,768) 3,768 - -
Transfer to stage 3 13 1 (14) -
New financial assets originated 13,274 - - 13,274
New financial assets originated and transferred to stage 2 & stage 3 (3,363) 3,363 - -
Financial assets which have repaid (3,795) (51) (2,324) (6,170)
Balance movements in loans (4) (1,888) (1,749) (3,641)
Write offs - - - -
Total movement in loans and advances 2,357 5,193 (4,087) 3,463
As at 31 March 2025 9,905 5,243 19,379 34,527
NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEAR ENDED 31 MARCH
2025
8 Loans and advances - (continued)
Movement analysis of gross loans by stage
Stage 1 Stage 2 Stage 3 Total
£'000 £'000 £'000 £'000
As at 01 April 2023 8,106 15,416 - 23,522
Transfer to stage 1 - - - -
Transfer to stage 2 (1,920) 1,920 - -
Transfer to stage 3 (2,597) (7,511) 10,108 -
New financial assets originated 7,152 - - 7,152
Nee financial assets originated and transferred to stage 2 & stage 3 (51) 51 - -
Financial assets which have repaid (2,239) (7,905) - (10,144)
Balance movements in loans (1,007) (1,921) 15,546 12,618
Write-offs - - (254) (254)
Total movement in loans and advances (662) (15,366) 25,400 9,372
As at 31 March 2024 7,444 50 25,400 32,894
Transfer to stage 1 - - - -
Transfer to stage 2 (3,712) 3,712 - -
Transfer to stage 3 13 1 (14) -
New financial assets originated 13,229 - - 13,229
New financial assets originated and transferred to stage 2 & stage 3 (3,345) 3,345 - -
Financial assets which have repaid (3,746) (51) (3,157) (6,954)
Balance movements in loans (5) (1,833) 1,038 (800)
Write-offs - - (626) (626)
Total movement in loans and advances 2,434 5,174 (2,759) 4,849
As at 31 March 2025 9,878 5,224 22,641 37,743
NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEAR ENDED 31 MARCH
2025
8 Loans and advances - (continued)
Movement analysis of ECL by stage
Stage 1 Stage 2 Stage 3 Total
£'000 £'000 £'000 £'000
As at 01 April 2023 7 36 - 43
Transfer to stage 1 - - - -
Transfer to stage 2 (1) 1 - -
Transfer to stage 3 (1) (4) 5 -
New financial assets originated 5 - - 5
New financial assets originated and transferred to stage 2 & stage 3 - - - -
Financial assets which have repaid (2) (32) - (34)
Changes in models / risk parameters (3) (1) 2,101 2,097
Adjustments for interest on impaired loans - - 74 74
Write-offs - - (254) (254)
Total movement in impairment provision (2) (36) 1,926 1,888
As at 31 March 2024 5 - 1,926 1,931
Transfer to stage 1 - - - -
Transfer to stage 2 (1) 1 - -
Transfer to stage 3 - - - -
New financial assets originated 8 - - 8
New financial assets originated and transferred to stage 2 & stage 3 (1) 1 - -
Financial assets which have repaid (4) - (860) (864)
Changes in models / risk parameters 2,374 2,374
Adjustments for interest on impaired loans - - 497 497
Write-offs - - (626) (626)
Total movement in impairment provision 2 2 1,385 1,389
As at 31 March 2025 7 2 3,311 3,320
NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEAR ENDED 31 MARCH
2025
8 Loans and advances - (continued)
Credit risk on gross loans and advances
Risk grades detailed in the table range from 1 to 10 with a risk grade of 1
being assigned to cases with the lowest credit risk and 10 representing cases
in default. Equifax Risk Navigator (RN) scores are used to assign the initial
Risk Grade score with additional SICR rules used to generate the final Risk
Grade.
As at 31 March 2024 Stage 1 Stage 2 Stage 3 Total
£'000 £'000 £'000 £'000
Risk Grades 1 - 5 7,444 50 - 7,494
Risk Grades 6 - 9 - - - -
Default - - 25,400 25,400
Total 7,444 50 25,400 32,894
As at 31 March 2025 Stage 1 Stage 2 Stage 3 Total
£'000 £'000 £'000 £'000
Risk Grades 1 - 5 8,107 1.130 - 9,237
Risk Grades 6 - 9 1,771 4,094 - 5,865
Default - - 22,641 22,641
Total 9,878 5,224 22,641 37,743
NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEAR ENDED 31 MARCH
2025
8 Loans and advances - (continued)
Impairment provisions are calculated on an expected credit loss ('ECL') basis.
Financial assets are classified individually into one of the categories below:
Stage 1 - assets are allocated to this stage on initial recognition and remain
in this stage if there is no significant increase in credit risk since initial
recognition. Impairment provisions are recognised to cover 12-month ECL, being
the proportion of lifetime ECL arising from default events expected within 12
months of the reporting date.
Stage 2 - assets where it is determined that there has been a significant
increase in credit risk since initial recognition, but where there is no
objective evidence of impairment. Impairment provisions are recognised to
cover lifetime probability of default. An asset is deemed to have a
significant increase in credit risk where:
- The creditworthiness of the borrower deteriorates such that their risk grade
increases by at least one grade compared with that at origination
- The borrower falls more than one month in arrears
- LTV exceeds 85% for Bridging
- For Development assets, where a development will not meet practical
completion by the date anticipated at origination.
Stage 3 - assets where there is objective evidence of impairment, i.e. they
are considered to be in default. Impairment provisions are recognised against
lifetime ECL. For assets allocated to stage 3, interest income is recognised
on the balance net of impairment provision.
- Purchased or originated credit impaired ('POCI') - POCI assets are financial
assets that are credit impaired on initial recognition.
On initial recognition, they are recorded at fair value. ECLs are only
recognised or released to the extent that there is a subsequent change in the
ECLs. Their ECLs are always measured on a lifetime basis.
Where there is objective evidence that asset quality has improved, assets will
be allocated to a lower risk category. For example, loans no longer in default
(stage 3) will be allocated to either stage 2 or stage 1.
Evidence that asset quality has improved will include:
- repayment of arrears;
- improved credit worthiness; and
- term extensions and the ability to service outstanding debt.
If a loss is ultimately realised, it is written off against the provision
previously provided for with any excess charged to the impairment provision in
the statement of profit and loss.
Critical accounting estimates relating to the impairment of financial assets:
The calculation of ECLs requires the Company to make a number of assumptions
and estimates. The accuracy of the ECL calculation would be impacted by
movements in the forward-looking economic scenarios used, or the probability
weightings applied to these scenarios and by unanticipated changes to model
assumptions that differ from actual outcomes.
The key assumptions and estimates that, depending on a range of factors, could
result in a material adjustment in the next financial year relate to the use
of forward-looking information in the calculation of ECLs and the inputs and
assumptions used in the ECL models.
Additional information about both of these areas is set out below.
Forward-looking information
The Company incorporates forward-looking information into the calculation of
ECLs and the assessment of whether there has been a significant increase in
credit risk ('SICR'). The use of forward-looking information represents a key
source of estimation uncertainty.
The Company uses three forward-looking economic scenarios:
- a central scenario aligned to the Company's business
plan;
- a downside scenario as modelled in the Company's risk
management process; and
- an upside scenario representing the impact of modest
improvements to assumptions used in the central scenario.
The macroeconomic data inputs applied in determining the Company's expected
credit losses are sourced from Oxford Economics (a third-party provider of
global economic forecasting and analysis).
Oxford Economics combines two decades of forecast errors with its quantitative
assessment of the current risks facing the global and domestic economy to
produce robust forward-looking distributions for the economy.
NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEAR ENDED 31 MARCH
2025
8 Loans and advances - (continued)
Forward-looking information - (Continued)
Using specific percentile points in the distribution of several key metrics
such as GDP, unemployment, house prices and commercial real estate prices, we
receive three alternative scenarios relating to a base case (most likely),
downside (broadly equivalent to a one in- ten-year event) and a moderate
upside scenario. Our assumptions on the likely out-turn represents a weighted
average of these three scenarios provided by Oxford Economics, and are
detailed below:
Marco Assumptions 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034
Real GDP growth (% growth YoY)
Base 0.97% 1.46% 1.66% 1.83% 1.68% 1.60% 1.59% 1.58% 1.59% 1.53%
Upside 3.76% 4.68% 2.86% 2.51% 1.53% 1.45% 1.44% 1.43% 1.44% 1.38%
Downside -1.60% -0.78% 1.18% 1.67% 1.79% 1.71% 1.70% 1.69% 1.70% 1.64%
Unemployment % base 4.50% 4.46% 4.32% 4.14% 4.05% 4.01% 4.00% 4.00% 4.00% 4.00%
Upside 3.93% 2.74% 2.14% 2.05% 2.11% 2.22% 2.35% 2.50% 2.64% 2.79%
Downside 4.97% 5.88% 6.59% 6.71% 6.47% 6.25% 6.07% 5.90% 5.73% 5.56%
House price inflation base 1.93% 2.60% 3.92% 5.05% 5.06% 3.89% 3.02% 2.81% 2.93% 3.18%
Upside 5.68% 6.09% 7.88% 6.30% 4.82% 3.66% 2.79% 2.58% 2.70% 3.08%
Downside -4.29% -3.39% -1.13% 4.31% 5.47% 4.29% 3.42% 3.21% 3.33% 3.57%
Commercial real estate (% growth YoY) base 2.85% 3.43% 3.40% 2.36% 1.60% 1.35% 1.09% 1.08% 0.96% 0.83%
Upside 13.29% 5.83% 3.64% 0.48% 0.19% 0.09% 0.04% 0.05% 0.05% 0.04%
Downside -5.97% 2.95% 3.97% 4.23% 3.09% 2.41% 1.85% 1.64% 1.37% 1.13%
GDP, unemployment rates and HPI (House price index) are key metrics that
indicate the appetite for credit within the economy, the ability of borrowers
to service debt and value of underlying securities that underpin credit risk
management; all of which directly impact the Company's operational activities
and success.
The probability weightings applied to the above scenarios are another area of
estimation uncertainty. They are generally set to ensure that there is an
asymmetry in the ECL. The probability weightings applied to the three economic
scenarios used are as follows:
Year ended 31 March 2025 and 2024
Base 40%
Upside 20%
Downside 40%
The Company undertakes a review of its economic scenarios and the probability
weightings applied at least quarterly, and more frequently if required.
The results of this review are recommended to the Audit & Risk Committee
and the Group's Board prior to any changes being implemented.
Critical judgements relating to the impairment of financial assets
The Company reviews and updates the key judgements relating to impairment of
financial assets bi-annually, in advance of the Interim Financial Report and
the Annual Report and Accounts. All key judgements are reviewed and
recommended to the Audit & Risk Committee for approval prior to
implementation.
Assessing whether there has been a significant increase in credit risk
('SICR')
If a financial asset shows a SICR, it is transferred to Stage 2 and the ECL
recognised changes from a 12-month ECL to a lifetime ECL. The assessment of
whether there has been a SICR requires a high level of judgement as detailed
below. The assessment of whether there has been a SICR also incorporates
forward-looking information.
NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEAR ENDED 31 MARCH
2025
8 Loans and advances - (continued)
Assessing whether there has been a significant increase in credit risk
('SICR') - (continued)
The Company considers that a SICR has occurred when any of the following have
occurred:
1. The overall credit worthiness of the borrower has materially worsened to a
level that the probability of default has at least doubled. This is indicated
by a migration to a higher risk grade (see below for risk grades and
probability of default ("PDs") by product).
2. Where a borrower is currently a month or more in arrears.
3. Where a borrower has sought some form of forbearance.
4. Where the overall leverage of the account has surpassed a predetermined
level. 75% Loan to Gross Development Value for bridging loans and 85% for all
other products.
5. Where a short-term bridging loan has less than one month before maturity.
6. Where there is a material risk that a development loan will not reach
practical completion on time.
These factors reflect the credit lifecycle for each product and are based on
prior experience as well as insight gained from the development of risk
ratings models (probability of default).
Stage 2 criteria are designed to be effective indicators of a SICR. As part of
the bi-annual review of key impairment judgements, the Company undertakes
detailed analysis to confirm that the Stage 2 criteria remain effective. This
includes (but is not limited to):
- Criteria effectiveness: this includes the emergence to default for each
Stage 2 criterion when compared to Stage 1, Stage 2 outflow as a percentage of
Stage 2, percentage of new defaults that were in Stage 2 in the months prior
to default, time in Stage 2 prior to default and percentage of the book in
Stage 2 that are not progressing to default or curing.
- Stage 2 stability: this includes stability of inflows and outflows from
Stage 2 and 3.
- Portfolio analysis: this includes the percentage of the portfolio that is in
Stage 2 and not defaulted, the percentage of the Stage 2 transfer driven by
Stage 2 criterion other than the backstops and back-testing of the defaulted
accounts.
For low credit risk exposures, the Company is permitted to assume, without
further analysis, that the credit risk on a financial asset has not increased
significantly since initial recognition if the financial asset is determined
to have low credit risk at the reporting date. The Group has opted not to
apply this low credit risk exemption.
A summary of the Risk grade distribution is provided in the table below. As
the Company utilises three different risk rating models, three separate PDs
have been provided for each portfolio.
Risk Grades 1-9 are for non-defaulted accounts with 10 indicating default.
Therefore, all Stage 3 loans are assigned to this grade.
As stated previously, degradation in a borrower's creditworthiness is an
indication of SICR. Therefore, as shown in the table below, Stage 2 loan
distributions are in the main assigned to risk grades higher than Risk Grade
1.
Balances (£'000) ECL (£'000) Probability of default
Risk Grade Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Bridging Development
RG1 241 - - - - - 2.0% 0.1%
RG2 1,390 36 - - - - 4.0% 0.4%
RG3 3,019 - - 2 - - 7.7% 0.6%
RG4 1,908 1,094 - 2 - - 14.0% 1.2%
RG5 1,549 - - 2 - - 25.0% 2.3%
RG6 - - - - - - 40.0% 4.1%
RG7 1,771 - - 1 - - 57.0% 7.2%
RG8 - 1,880 - - 1 - 73.0% 11.6%
RG9 - 2,214 - - 1 - 84.0% 18.9%
RG10 - - 22,641 - - 3,311 100.0% 100.0%
Total 9,878 5,224 22,641 7 2 3.311 - -
Determining whether a financial asset is in default or credit impaired
When there is objective evidence of impairment and the financial asset is
considered to be in default, or otherwise credit-impaired, it is transferred
to Stage 3. The Company's definition of default follows product-specific
characteristics allowing for the provision to reflect operational management
of the portfolio. Below we set out a short description of each product type
and the Company's definition of default as specific to each product.
Bridging Loans - Bridging loans are short-term loans designed for customers
requiring timely access to funds to facilitate property purchases. Typically,
loans involve residential securities, however, commercial, semi-commercial and
land is also taken as security.
A bridging loan is considered to be in default if:
a) A borrower fails to repay their loan after 30 days and does not seek an
authorised extension.
b) the loan is two months in arrears either in term or after expiry
NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEAR ENDED 31 MARCH
2025
8 Loans and advances - (continued)
Determining whether a financial asset is in default or credit impaired -
(continued)
Development Loans - Development loans support borrowers looking to undertake a
significant property or site development. The resulting site should be for
residential purposes only. Loan terms are typically for the short term (less
than three years) with no structured repayments. A development loan is defined
as being in default if it has not been redeemed 60 days after the maturity of
the loan.
The Company does not apply the rebuttable presumption that default does not
occur later when a financial asset is 90 days past due.
Improvement in credit risk or cure - There is no cure period assumed for loans
showing improvement in credit risk. This means that any loan that does not
meet the SICR criteria is assigned to Stage 1.
9 Deferred tax liability
2025 2024
£'000 £'000
Deferred tax liability (See note 7) 26 25
26 25
10 Receivables from related parties and other receivables
2025 2024
£'000 £'000
Receivables from related parties 76,232 67,061
Other receivables - 183
76,232 67,244
The Company's receivables from related parties are unsecured amounts.
11 Payables to related parties and other payables
2025 2024
£'000 £'000 (Restated)
Other payables 237 259
Payables to related parties 20,954 18,082
21,191 18,341
£21.0m (2024 £18.1m) of the Company's trade payables are unsecured
intercompany payables owed to the Company's related parties.
NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEAR ENDED 31 MARCH
2025
12 Interest bearing liabilities
2025 2024
£'000 £'000
Interest bearing liabilities due within twelve months 3,158 2,724
Interest bearing liabilities due after one year but less than five years 87,873 80,223
Funding line costs(1) (972) (1,474)
90,059 81,473
1 Funding line costs represent transaction costs incurred in issuing the
retail bonds.
Interest bearing liabilities as at 31 March 2025 relate to Retail Bond 3 and
4. In August 2022, Lendinvest Secured Income II PLC exchanged £29,545,000 of
Retail bond 3 with Lendinvest Secured Income PLC's Retail Bond 1 and Retail
Bond 2 for £24,547,000 and £4,998,000 respectively. Payment for the exchange
was received from Lendinvest Secured Income PLC for this transaction. The
remaining £9,328,000 principal interest bearing liabilities was received from
third parties. In October 2023 Lendinvest Secured Income II PLC exchanged
£31,685,500 of Retail Bond 4 with Lendinvest Secured Income PLC's Retail Bond
2. The remaining £17,314,500 principal interest bearing liabilities was
received from third parties.
Funding line costs are amortised on an effective interest rate basis.
Net debt represents interest bearing liabilities (as above), less cash at bank
and in hand (excluding cash held for clients) and excluding unamortised debt
issue costs but including accrued interest relating to the Company's
third-party indebtedness. A reconciliation of net debt is:
31 March 2025 31 March 2024
£'000 £'000
Interest bearing liabilities 90,059 81,473
Deduct: cash as reported in financial statements (70) (685)
Net debt: borrowings less cash 89,989 80,788
Add: unamortised funding line costs 972 1,474
90,961 82,262
31 March 2025 31 March 2024
£'000 £'000
Interest bearing liabilities 81,473 38,195
Cash flows 7,634 9,665
Movement in accrued interest 434 2,361
Amortisation of funding line costs 518 (381)
Increase in interest bearing liabilities - 31,633
90,059 81,473
NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEAR ENDED 31 MARCH
2025
13 Financial instruments
The principal financial instruments used by the Company, from which financial
instrument risk arises, are loans and advances, trade and other receivables,
cash and cash equivalents, interest bearing liabilities and trade and other
payables.
Categorisation of financial assets and financial liabilities
All financial assets of the Company are carried at amortised cost or fair
value through other comprehensive income as at 31 March 2024 and 2025. All
financial liabilities of the Company are carried at amortised cost as at 31
March 2024 and 2025.
Financial instruments measured at amortised cost
Financial instruments measured at amortised cost, rather than fair value,
include cash and cash equivalents, trade and other receivables, trade and
other payables and interest-bearing liabilities. Due to their short-term
nature, the carrying value of cash and cash equivalents and trade and other
payables approximates their fair value.
a) Carrying amount of financial instruments
A summary of the financial instruments held is provided below 2025 2024
£'000 £'000 (Restated)
Financial assets not at fair value through profit and loss
Cash and cash equivalents (At amortised cost) 70 685
Other receivables and receivables from related parties (At amortised cost) 76,232 67,244
Loans and advances (At fair value through other comprehensive income) 34,527 31,064
Total financial assets 110,829 98,993
Other payables 237 259
Payables to related parties 20,954 18,082
Interest bearing liabilities 90,059 81,473
Total financial liabilities 111,250 99,814
The following table compares the carrying amounts of the Company's financial
assets and financial liabilities as at 31 March 2024
2025 2025 2024 2024
£'000 £'000 £'000 £'000
Carrying amount Fair value Carrying amount Fair value
Cash and cash equivalents 70 70 685 685
Receivables from related parties 76,232 73,551 67,061 65,115
Other receivables - - 183 183
Loans and advances 34,527 34,527 31,064 31,064
Total financial assets 110,829 108,148 98,993 97,047
Financial liabilities not at fair value through the profit and loss
Other payables 237 237 259 259
Payables to related parties 20,954 20,519 18,082 18,082
Interest bearing liabilities 90,059 89,668 81,473 79,759
Total financial liabilities 111,250 110,424 99,814 98,100
The fair value of the Retail Bond 3 interest bearing liability is calculated
based on the mid-market price of £97.56 on 31 March 2025 (£86.3 on 31 March
2024). The fair value of the Retail Bond 4 interest bearing liability is
calculated based on the mid-market price of £105.60 on 31 March 2025 (£100.1
on 31 March 2024).
As per IFRS 9, loans and advances are classified as fair value through other
comprehensive income and any changes to fair value are calculated based on the
fair value model and are recognised through the statement of other
comprehensive income.
b) Fair value hierarchy
The level in the fair value hierarchy within which the financial asset or
financial liability is categorised is determined on the basis of the lowest
level input that is significant to the fair value measurement. Financial
assets and liabilities are classified in their entirety into only one of the
three levels. The fair value hierarchy has the following levels:
Level 1 - quoted prices in active markets for identical assets;
Level 2 - observable direct and indirect inputs other than level 1 inputs;
Level 3 - unobservable inputs (i.e., not derived from market data and require
a level of estimates and judgements within the model).
The objective of valuation techniques is to arrive at a fair value measurement
that reflects the price that would be received to sell the asset or paid to
transfer the liability in an orderly transaction between market participants
at the measurement date.
NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEAR ENDED 31 MARCH
2025
13 Financial instruments - (continued)
As at 31 March 2025
Total Level 1 Level 2 Level 3
Financial instruments measured at fair value
£'000 £'000 £'000 £'000
Loans and advances 34,527 - - 34,527
Financial instruments disclosed at amortised cost
Interest bearing liabilities (90,059) (90,059) - -
Receivables from related parties 76,232 - - 76,232
As at 31 March 2024
Total Level 1 Level 2 Level 3
Financial instruments measured or disclosed at
fair value
Loans and advances 31,604 - - 31,604
Financial instruments measured or disclosed at amortised cost
Interest bearing liabilities (81,473) (81,473) - -
Receivables from related parties 67,061 - - 67,061
For all other financial instruments, the fair value is equal to the carrying
value and has not been included in the table above.
The valuation techniques and significant input used in determining the fair
value measurement of level 3 financial instruments are below.
Level 3 instruments include loans and advances. The valuation of the asset is
not based on observable market data (unobservable inputs). Valuation
techniques include net present value and discounted cash flow methods. The
assumptions used in such models include benchmark interest rates and borrower
risk profile. The objective of the valuation technique is to determine a fair
value that reflects the price of the financial instrument that would have been
used by two counterparties in an arm's length transaction.
Level 3 financial instruments Year ended 31 March 2025 £'000
Level 3 assets at the beginning of the period 31,064
Additional impairment provision made during the period (2,015)
Impairment provision utilised in the period 626
Fair value adjustments on loans through OCI 104
New level 3 assets originated 13,274
Level 3 assets that have repaid (6,169)
Balance movements in level 3 loans (2,357)
Level 3 assets at the end of the period 34,527
Financial instrument Valuation techniques used Significant input Range
Loans and advances Discounted cash flow valuation Discount rate 4% - 12%
NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEAR ENDED 31 MARCH
2025
13 Financial instruments - (continued)
c) Fair Value reserve
Financial assets Deferred tax Fair value reserve
£'000 £'000 £'000
Balance as at 01 April 2023 (82) 20 (62)
Movement in fair value adjustment for loans and advances at fair value through 183 (46) 137
other
comprehensive income
Fair value reserve at 31 March 2024 101 (26) 75
Balance as at 01 April 2024 101 (26) 75
Movement in fair value adjustment for loans and advances at fair value through 3 (1) 2
other comprehensive income
Fair value reserve at 31 March 2025 104 (27) 77
The significant input used in the fair value measurement of the reporting
entity's loans and advances is discount rates. A significant increase /
(decrease) in this input in isolation would result in a lower / (higher) fair
value measurement.
NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEAR ENDED 31 MARCH
2025
13 Financial instruments - (continued)
d) Fair Value through OCI sensitivity analysis
Discount rate Gain or loss as at 31 March 24 +100bps -100bps
£'000 £'000
Impact of changes in significant inputs (97) 101
Discount rate Gain or loss as at 31 March 25 +100bps -100bps
£'000 £'000
Impact of changes in significant inputs (115) 120
e) Interest rate sensitivity
The significant unobservable inputs used in the fair value measurement of the
reporting entity's loans and advances are prepayment rates, discount rates and
probability of default. Significant increase / (decrease) in discount rates of
those inputs in isolation would result in a lower / (higher) fair value
measurement. A change in the assumption of these inputs will not correlate to
a change in the other inputs. The impact of changes in observable inputs shown
in sensitivity analysis below will be reported through other comprehensive
income.
As at the reporting date, if interest rates increased 100 basis points and all
other variables were held constant:
• Profit before tax for the period to 31 March 2025 would be
unchanged. Although the Company's interest rates on loans to borrowers is
operated as a fixed rate, the Company has the legal right to vary the borrower
interest rate if certain changes in interest rates occur. Implementing this
provision would improve the impact of an interest rate increase. However, we
have assumed in this sensitivity analysis that the Company has not implemented
this provision. Loans from lenders are fixed rate denominated.
• Movement in equity reserves as at 31 March 2025 refer to d)
above.
A reduction of 100 basis points would result in negative interest rates. This
has been applied below given indications by the Bank of England that this is
being considered. If interest rates reduced by 100 basis points and all other
variables were held constant:
• Profit before tax for the period to 31 March 2025 would be
unchanged. As noted above, the Company's interest rates on loans to borrowers
are fixed rate denominated, with certain provisions to vary them, while loans
from lenders are also fixed rate denominated.
• Movement in equity reserves as at 31 March 2025 refer to d)
above.
NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEAR ENDED 31 MARCH
2025
14 Share capital
2025 2024
No. £'000 No. £'000
Issued ordinary shares of £1 each 50,000 50,000 50,000 50,000
The company has one class of ordinary shares which carry no rights to fixed
income.
15 Reserves
The company's other reserves are as follows:
Retained loss:
The retained earnings reserves represent cumulative profits or losses, net of
dividends and other adjustments
2025 2024
£'000 £'000
Retained (loss)/earnings (574) (971)
Other reserves:
The other reserves represent movements on the fair value of the financial
assets classified as FVOCI
2025 2024
£'000 £'000
Fair value reserve 77 75
NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEAR ENDED 31 MARCH
2025
16 Related party transactions
2025 2024
Intercompany interest income £'000 £'000
Lendinvest Bridge Limited 4,324 3,063
Lendinvest Warehouse Limited 1,173 -
Lendinvest Platform Limited 28 -
Intercompany receivable/(payable) balances
Lendinvest PLC 1,864 184
Lendinvest PLC (17) -
Lendinvest Bridge Limited 15,788 5,250
Lendinvest Bridge Limited (1,849) (1,849)
Lendinvest Bridge Limited (interest bearing) 41,009 45,592
Lendinvest Secured Income I PLC 76 15,979
Lendinvest Secured Income I PLC (245) (16,230)
Lendinvest Finance No.4 Limited 5 5
Lendinvest Finance No.4 Limited (1,170) -
Lendinvest Platform Limited 70 39
Lendinvest Platform Limited (interest bearing) 1,000 -
Lendinvest Platform Limited (interest bearing) (500) -
Lendinvest Development Limited 12 12
Lendinvest Development Limited (11) -
Lendinvest Warehouse Limited 4,766 -
Lendinvest Warehouse Limited (11,558) -
Lendinvest Warehouse Limited (interest bearing) 11,643 -
Lendinvest Finance No. 5 Limited (5,602) -
All the above balances are unsecured intercompany balances payable on demand,
except for those that are interest bearing. Of the interest-bearing balances
£20.2m (2024: £19.8m) have an interest rate of 8% with a receivable date of
7(th) August 2027. The remaining £33.0m (2024: £25.8m) have an interest rate
of 15% with a receivable date of 2(nd) October 2026.
2025 2024
Transfer of loan balances between the Company and related parties £'000 £'000
Total value of loan balances transferred to the Company from related parties 197,647 127,655
during the period
Total value of loan balances transferred from the Company to related parties 177,817 96,709
during the period
Transfer of loans balances are at fair value that reflects the price of the
financial instrument that would have been used by two counterparties in an
arm's length transaction.
Intermediary fees are charged by the ultimate parent, LendInvest PLC,
according to the level of support provided across loan servicing,
administrative and other support services.
17 Ultimate controlling party
The controlling party is LendInvest Loan Holdings Limited, and the ultimate
controlling party is LendInvest PLC whose consolidated financial statements
are available at the registered address.
18 Events after reporting date
There are no events after the reporting period that require disclosure.
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