REG - Lendinvest PLC LendInvest PLC-LINV - Annual Financial Report
21/07/2025 07:45
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RNS Number : 8329R Lendinvest PLC 21 July 2025
July 21st 2025
LendInvest plc
AUDITED RESULTS FOR THE YEAR ENDED 31 MARCH 2025
Driving Strong Growth and Enhanced Efficiency in an Improved Market
LendInvest plc (LSE: LINV; "LendInvest", the "Company" or the "Group") is a
leading alternative property finance platform in the UK. The LendInvest
Mortgages Division provides a range of term and short-term mortgages to both
professional Buy-to-Let landlords and Homeowners. The LendInvest Capital
Division provides larger, more structured finance primarily to property
developers and investors.
CEO's Statement (Rod Lockhart)
Building Momentum and Delivering Results
FY25 marks a turning point for LendInvest. Having returned to profitability in
September, we delivered a sustained performance throughout the second half of
the year - achieving profit before tax of £0.5m for H2 and an adjusted EBITDA
of £3.2m for the year. This was a critical milestone for the business, and a
clear demonstration that our strategy is working.
This progress reflects a combination of strong execution, tough decisions, and
a focused effort across the business to simplify, scale, and reset the
platform for long-term growth. That included reshaping our cost base,
strengthening our capital markets relationships, and deepening our investment
in the technology that underpins how we lend, underwrite, and serve our
customers.
Total new lending grew 39% year-on-year to £1.23bn, with particularly strong
momentum in our Mortgages Division, where lending rose 62%. These results were
supported by a more stable market together with the strength of our
service-led proposition - combining deep underwriting expertise with a
tech-led platform that accelerates decisioning, reduces friction, and builds
trust with borrowers and brokers.
Our revenue model combines fee income from third-party capital with interest
income from our principal investments. Net fee income rose 48% to £22m (FY24:
£14.9m), reflecting strong growth in the assets that we originate and manage
for others. Net interest income almost doubled to £15.7m (FY24: £7.9m),
supported by significant new and renewed financing partnerships on improved
terms. Together, these two complementary streams provide resilience,
scalability, and flexibility - with each reinforcing the strength of our
broader platform.
Platform Assets under Management (AuM) increased by 16% to £3.23bn, with 79%
of those assets now managed on behalf of third parties - a clear signal of our
strategic shift to a capital-light model and the confidence our investors
place in the business.
Operationally, we've made the business leaner and more scalable. Average
headcount fell 15% in FY25, the London office footprint was right-sized, and
Glasgow is now a growing centre of excellence across risk, underwriting,
operations, finance, marketing, product, tech, and servicing. These
efficiencies haven't compromised service: turnaround times improved,
application-to-offer durations dropped 20%, and platform productivity rose
significantly - with the BTL team achieving over 50% throughput gains.
We improved product transfer capabilities, helping brokers retain customers
and giving borrowers a smoother refinancing path. As this scales, it will cut
acquisition costs and increase lifetime value. We also enhanced products
across Buy-to-Let, Residential, and short-term mortgages, and completed our
sixth public securitisation. Together with five new or renewed funding lines,
this supports scalable growth without compromising control or margin.
We were pleased to achieve profitability in H2 across EBITDA and PBT,
recording a profit before tax of £0.5m, compared to a loss before tax in H1
of £1.7m - an improvement of 129% between H1 and H2.
While the strengthening in H2 was not sufficient to deliver full-year
profitability on a statutory basis, we narrowed our annual loss before tax to
-£1.2m (FY24: -£31.1m), an improvement of 96%. Adjusted EBITDA swung to a
positive £3.2m from an £19.0m loss last year (EBITDA improved 113% from
£21.7m loss to a £2.8m positive). These figures mark a significant
recovery - and the strength of H2, in particular, gives us confidence that our
platform is on the right trajectory.
Outlook
Our focus in FY26 is on disciplined execution: driving lending growth,
improving efficiency, and growing profitability in line with current market
expectations for the year.
We start from a stronger, leaner base, with automation and operating leverage
enabling growth without expanding fixed overheads. Continued investment in
platform automation and product upgrades, like our Product Transfer tool for
intermediaries, is improving retention and boosting originations without
raising acquisition costs.
We remain committed to cost discipline, margin improvement, and sustainable
growth across our core products.
Rod Lockhart
Chief Executive Officer
Summary Financials
Year to Year to Change
31 March 31 March
2025 2024
(Restated)1
Funds under Management (FuM) (£m) 5,128.6 4,127.3 24%
Platform Assets under Management (AuM) (£m) 3,232.8 2,783.5 16%
Proportion of AuM on 3rd Party Funds 79% 83% (5%)
New lending (£m) 1,231.1 886.5 39%
Interest bearing liabilities (£m) (725.0) (514.6) (41%)
Net assets (£m) 64.4 55.5 16%
Net interest income (£m) 15.7 7.9 99%
Net fee income (£m) 22.0 14.9 48%
Net operating income (£m) 38.6 19.7 96%
Total operating expenses (£m) (39.8) (50.8) 22%
Gain/(loss) in adjusted EBITDA (£m) 3.2 (19.0) 117%
Loss before tax (£m) (1.2) (31.1) 96%
Loss after tax (£m) (1.6) (23.9) 93%
Diluted earnings per share (1.2)p (14.5)p 92%
Cash & cash equivalents (£m) 68.2 55.7 22%
1: Restatements detailed as per p73 of the annual report
FY25 Strategic Highlights
Delivering against our strategy: Lend more. Operate more efficiently. Return
to profitability.
1. Lend More
In FY25, we significantly strengthened our funding base and grew lending
across all major product lines.
● Funds Under Management (FuM) increased by 24% to £5.13bn, driven by
growth in 3(rd) party mandates, resulting in a 48% increase in Net Fee Income
to £22m.
● Assets Under Management (AuM) rose 16% to £3.23bn, supported by the
strong performance of the Mortgages Division, particularly in Buy-to-Let.
Key capital milestones:
● JP Morgan Separate Account upsized by £500m to £1.5bn
● Separate Account with a UK savings bank upsized by £500m to £1bn
● £300m syndicate with BNP Paribas and HSBC renewed on improved
terms
● £300m facility with Lloyds renewed
● £200m Separate Account with a credit fund expanded to include
development loans
● New £250m revolving facility with Societe Generale secured on
competitive terms
● Sixth securitisation, Mortimer 2024-MIX, completed - including our
first securitisation of owner-occupied loans and attracting 17 investors
Lending performance:
● Total lending rose 39% YoY to a record £1.23bn
● Mortgages Division lending grew 62%, supported by stronger pricing
and service improvements - including enhancements to the Broker Portal
● BTL originations grew 113% YoY, while Short Term Mortgages grew
53% YoY in H2
● Development finance was flat in H1, but H2 originations grew 88%
YoY, supported by improved market conditions
● Application-to-offer times now average 11-14 days, with Short Term
Mortgages application to completion times improving by 30% YoY
2. Operate More Efficiently
We enhanced scalability and productivity across the platform without
proportionate cost increases.
● Total operating expenses reduced by 22%, from £50.8m to £39.8m
● Administrative expenses fell by 14%, including a 15% reduction in
people-related costs
● Continued migration of roles to our Glasgow Centre of Excellence,
strengthening resilience and scalability
● Technology and operating model changes delivered meaningful gains
in operating leverage
Examples of efficiency improvements:
● Each BTL underwriter now processes up to 6 cases a day, up from 4
in FY24 - a 50% increase.
● Based on an average loan size of £300,000 and a 50% conversion
rate, six underwriters could now support up to £900m in annual originations -
or £150m per UW per year - up from £100m in FY24.
● Operational efficiency gains of 50% delivered across BTL and STM
teams
● Improved processes enabled delivery of FY25 lending targets
without headcount uplift
● Broker NPS reached 85 at offer and 72 at completion
3. Return to Profitability
Our disciplined execution and stronger income mix restored profitability in
H2.
● We have been profitable for PBT in H2, recording a profit before
tax of £0.5m compared to a loss before tax in H1 of £1.7m - an improvement
of 129%. YoY we improved by 96% to a FY25 loss of £1.2m
● Annual Net Operating Income almost doubled to £38.6m (FY24:
£19.7m), driven by record lending and strong fee income
● FY25 Adjusted EBITDA swung to a positive £3.2m (FY24: -£19.0m),
up 117% YoY (EBITDA £2.8m FY24: -21.7m)
● Loss before tax improved by 96% YoY, narrowing to £1.2m (FY24:
£31.1m)
Analysts and investors presentation: 9.00am on July 21st 2025
A webcast for analysts and investors will be hosted by Rod Lockhart, Chief
Executive Officer; Hugo Davies, Chief Capital Officer and MD LendInvest
Mortgages; and Stephen Shipley, Chief Financial Officer at 9.00am today, July
21st 2025. A playback facility will also be available in due course.
To access the webcast, please register here
(https://sparklive.lseg.com/LENDINVEST/events/7a16cae7-9f0f-4e2b-a2c2-ff6971b7de3a/lendinvest-plc-full-year-results-2025)
Enquiries:
LendInvest
Rod Lockhart, Chief Executive Officer
Hugo Davies, Chief Capital Officer & MD of LendInvest Mortgages
Stephen Shipley, Chief Financial Officer
Chris Semple, Head of Corporate Communications & Investor
Relations
press@lendinvest.com
investorrelations@lendinvest.com
+44 (0)7575582855
Panmure Liberum (NOMAD and Broker)
Atholl Tweedie / David Watkins
+44 (0)20 7886 2500
Forward-looking statements
Certain statements in this announcement are forward-looking statements. In
some cases, these forward looking statements can be identified by the use of
forward looking terminology including the terms "anticipate", "believe",
"intend", "estimate", "expect", "may", "will", "seek", "continue", "aim",
"target", "projected", "plan", "goal", "achieve" and words of similar meaning
or in each case, their negative, or other variations or comparable
terminology. Forward-looking statements are based on current expectations and
assumptions and are subject to a number of known and unknown risks,
uncertainties and other important factors that could cause results or events
to differ material from what is expressed or implied by those statements. Many
factors may cause actual results, performance or achievements of LendInvest to
be materially different from any future results, performance or achievements
expressed or implied by the forward-looking statements. Important factors that
could cause actual results, performance or achievements of LendInvest to
differ materially from the expectations of LendInvest, include, among other
things, general business and economic conditions globally, industry trends,
competition, changes in government and changes in regulation and policy,
changes in its business strategy, political and economic uncertainty and other
factors. As such, undue reliance should not be placed on forward-looking
statements. Any forward-looking statement is based on information available to
LendInvest as of the date of the statement. All written or oral
forward-looking statements attributable to LendInvest are qualified by this
caution. Other than in accordance with legal and regulatory obligations,
LendInvest undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information, future
events or otherwise. Nothing in this announcement should be regarded as a
profit forecast.
Inside information
This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 (as it forms part of retained EU law as defined in
the European Union (Withdrawal) Act 2018).
Chairman's Statement
Having stepped into the role of Chair in March 2025, I write this introduction
with both a fresh perspective and longstanding familiarity.
As an Independent Non-Executive Director since the IPO in 2021, I have had the
opportunity to closely observe LendInvest's evolution as a public company, its
strategic recalibration in the face of the end of the ultra-low interest rate
era, and its steadfast commitment to innovation and value creation.
While my appointment came at the end of the reporting period, I am pleased to
begin my tenure at a moment of renewed confidence.
FY25 was a year of clear progress: while H1 FY25 continued to be impacted by
the effects of recalibrating the business to a new external environment, the
business returned to profitability in H2 with net fee income increasing by 48%
year-on-year, and its adjusted EBITDA for the year as a whole increased by
117% to £3.2m (EBITDA increased 113% to £2.8m). These outcomes reflect
disciplined execution of the strategy outlined last year - to simplify the
business, stabilise margins, and build for sustainable growth.
LendInvest today is a more resilient, more scalable business. The
capital-light platform now generates the majority of its income from fees
rather than its principal investments; operating leverage has improved
markedly; and our investment in technology continues to pay dividends - both
in efficiency gains and in delivering a better experience to our customers and
capital providers.
Looking ahead, I believe the opportunity for LendInvest remains compelling.
The UK alternative property-lending market offers substantial headroom for
growth, and our dual-engine model - connecting underserved borrowers with a
diverse base of investors - is well positioned to capture it.
When reflecting on our IPO and our journey as a listed company on the AIM
market, it's clear that the business has undergone significant transformation.
We successfully deployed the capital raised at IPO to build out a highly
specialised mortgage lending platform, expanding into the Buy-to-Let segment
and capturing meaningful market share. We invested in technology to enhance
speed, transparency, and service quality for our customers and partners.
The macroeconomic environment has, of course, evolved considerably. The sharp
rise in interest rates and the resulting shift in UK mortgage market dynamics
required us - like many alternative lenders - to retrench and recalibrate our
model to protect the long-term health of the business. These changes have not
been without difficulty, particularly for our shareholders, our team, our
valued brokers and borrowers, and our platform investors.
Operating as a public company has brought both opportunities and challenges.
While the capital that came with listing supported our early growth, it's also
clear that the associated costs of operating as a listed company as well as
the constraints - including limited shareholder liquidity which drives share
price volatility, and challenges in aligning incentives for retention and
reward - have created burdens of overhead cost and complexity for a business
of our scale.
Nonetheless, we continue to operate the company in the best interests of all
stakeholders and remain particularly mindful of our responsibilities towards
our public market shareholders who placed their trust in the company on
listing and subsequently. Our near-term focus is on growing profitability,
capital generation, and long-term sustainability - priorities which we believe
serve all stakeholders.
Market Backdrop
The UK property finance market in FY25 was defined by growing stability and
the early signs of recovery after a prolonged period of challenges and
sluggish growth.
While market volumes remained below long-term averages, the direction of
travel improved meaningfully. For alternative lenders and credit investors,
the year marked a turning point - with falling rates, moderating inflation,
and for the best part, renewed clarity in funding markets creating more
favourable conditions for growth.
We started the year with the Bank of England base rate at 5.25%, but ended it
in March 2025 at 4.25%, following a series of consistent reductions. This
shift, alongside less volatile swap rates, created a more stable backdrop for
pricing - enabling us to manage interest rate risk more effectively while
remaining competitive across all products. As a result, we unlocked new
opportunities for broker clients, reignited investor confidence, and delivered
a record year for mortgage origination, driven by optimised execution across
both short-term mortgages and buy-to-let.
For landlords, the income backdrop remained strong: private rental inflation
continued to outpace general inflation, underpinned by structural supply
shortages in the housing market. Demand remained strongest in value-accretive
investment strategies - such as refurbishment, HMO conversions, and
professionally managed lets - segments in which specialist lenders have a
distinct competitive advantage.
Headline CPI inflation rose 2.6% in the 12-months to March 2025, reflecting a
gradual easing of price
pressures across the economy. House prices stabilised, with Nationwide
reporting a 3.9% annual increase in the 12 months to March 2025. Mortgage
approvals rose from a low of around 61,100 per month at the start of the
financial year to approximately 64,300 by March 2025 (though the Stamp Duty
changes created a spike in demand in March 2025). While overall transaction
volumes remain constrained, investor and borrower sentiment improved
consistently through the second half of the year, as expectations for a
rate-driven recovery strengthened.
Labour market conditions softened marginally, with unemployment rising to 4.5%
by March 2025.
However wage growth, while higher than where the Bank of England would like,
remained robust -
supporting affordability and, in turn, credit performance. Core
mortgage-eligible demographics
remained well supported, and employment levels continued to sustain underlying
borrower affordability.
From a credit investor perspective, performance remained resilient -
supporting demand for income-
generating opportunities backed by real assets such as buy-to-let.
Institutional appetite for high-quality property finance exposure improved as
broader volatility eased. Private credit and public securitisation spreads
generally rallied over the course of the year, with AAA bonds tightening by as
much as 10bps at one stage, reflecting both increased investor confidence in
structured finance but importantly, the desire to allocate capital to highly
rated, investment grade securities with less correlation to the whims of the
global socio-political agenda. For investors seeking yield with security, this
asset class has, again, offered a compelling proposition in an unpredictable
world- a world where specialist lenders, or alternative platforms such as our
own, with both the origination scale and risk discipline, were best placed to
create and capture value.
Looking ahead, the outlook for the market in FY26 is increasingly
constructive, with rates expected to continue falling, inflation nearing
target, and borrower sentiment improving, the market environment is shifting
in favour of well-capitalised, tech-enabled lenders with differentiated
funding and platform advantages. While challenges will inevitably emerge - as
they have in recent years - we are well positioned to benefit from this next
phase of the cycle, with the best technology platform, the right partnerships,
the right investors, and a strong track record of performance in specialist
segments where growth is accelerating.
Core Performance
Lending: More Lending, Same Discipline
A critical part of our recovery strategy in FY25 was to lend more, with a
deliberate focus on the segments and structures where the business could
originate high-quality loans with strong risk-adjusted returns. While the
wider mortgage market remained subdued, our specialist platform and broker-led
origination model enabled the business to grow lending volumes across several
core segments, with total lending rising 39% YoY to a record £1.23bn.
Short-Term Mortgages lending was the standout performer. Transaction speeds
remained at the heart of this product's value proposition, and our ability to
deliver fast, reliable funding to brokers and borrowers gave us a clear edge
over traditional lenders. Demand from property professionals, developers, and
auction buyers rebounded steadily in H2, and we responded by deploying capital
at pace, without compromising on underwriting standards. Time-to-fund metrics
improved significantly through the year, reinforcing the platform's
competitive advantage in short-term finance.
Even in the Buy-to-Let (BTL) sector, where landlords are pivoting strategies
in response to ongoing yield challenges, there were enough 'windows of
opportunity' (openings in the market where falls in swap rates increased
product options and ultimately, affordability) to nudge the sector back into
growth mode. UK Finance reported that financing for purchases and remortgages
was up 58.9% and 41.7% respectively. Our fully digital and smart BTL product
proposition, focused on speed, transparency, and broker usability, gained
traction, with our level of purchases and remortgages up 129% and 24%
respectively. During the year, we expanded our intermediary panel, improved
quoting tools, and optimised product features to improve conversion rates,
with strong Q4 momentum carrying into FY26.
Residential lending was reshaped in response to challenging conditions. Higher
interest rates led to higher affordability assessments which constrained
demand for much of the year, particularly among near-prime borrowers. In
response, we reoriented our proposition to better serve underserved segments
including key workers, self-employed professionals, and for those borrowers
with credit profiles that require a specialist touch. We continue to see
market opportunity and growth potential in these cohorts, aligning closely
with LendInvest's appetite to alternative property finance solutions where
traditional banks pull back. As the macro backdrop improves and we roll out
our revamped distribution strategy, the repositioned product is expected to
gain share.
Development finance saw a year of stabilisation, shaped by a difficult macro
environment for SME house builders. High interest rates, elevated construction
costs, and subdued planning activity continued to limit demand, and
origination volumes remained broadly flat year-on-year. That said, momentum
began to build in the second half, supported by multiple base rate cuts,
improved sentiment, and growing political focus on housing delivery. Enquiry
volumes in H2 FY25 rose 35% versus the prior year, and we introduced tactical
funding solutions through new capital partners while continuing to develop a
scalable, long-term strategy for the segment.
Throughout FY25, the business remained selective in deploying resources.
Lending priorities were based on margin, scale, and operational efficiency.
We concentrated our efforts where returns were strongest - such as short-term
mortgages and BTL.
Where volumes or returns were lower - such as Residential - the focus shifted
to product refinement and cost control. This ensured both top-line growth and
a clear path to profitability.
Tech-enabled origination continued to underpin all product categories.
Automation, data-driven underwriting, and real-time broker dashboards
accelerated the end-to-end lending process and improved consistency. This not
only improved the borrower and broker experience, but also helped to ensure
operational scalability as volumes increased. The continued roll-out of our
proprietary originations engine supported better decisioning, faster
completions, and more efficient case management.
Lending in FY25 did not rely on a broad market rebound. It reflected a clear
strategy: to lean into segments where our platform has competitive advantage,
to maintain pricing discipline, and to prioritise origination where margins
and capital efficiency align.
Operational Efficiency: Leaner, Smarter, More Scalable
As part of the strategic shift initiated in FY24, we took decisive steps
throughout FY25 to reshape our operating model for efficiency, scalability,
and long-term margin improvement. This was not a one-off cost-cutting
exercise, but a structural realignment designed to reduce overheads, simplify
the business, and embed technology-led processes across every function.
A key focus was optimising our operational footprint. The London office was
right-sized, relocating to a smaller, more suitable space that better reflects
the hybrid and flexible nature of today's working environment. At the same
time, we deepened our investment in Glasgow - not simply as a cost-effective
alternative, but as a strategic growth centre.
Our Glasgow hub has rapidly evolved into a centre of excellence across key
functions including risk, underwriting, operations, finance, marketing,
product, tech, and servicing.
We've continued to build out high-calibre teams there, tapping into a strong
local talent pool with deep financial services expertise. This move enables us
to scale core operations in a way that is operationally efficient, culturally
aligned, and structurally future-facing.
FY25 also marked the first full year with all core mortgage products -
Buy-to-Let, Residential, and Short-Term Mortgages - operating on a single,
unified origination and processing platform. This consolidation delivered a
range of tangible benefits. Real-time API integrations now pull key data into
a single underwriting screen, significantly reducing manual handling and
underwriter processing time. Brokers can submit enquiries in under 90 seconds,
repeat cases auto-fill, and completions can occur in as little as five working
days using Automated Valuation Models (AVMs) and dual legal representation -
all without relying on third-party platforms.
Productivity improved materially across the year. Underwriters now reach final
decisions with fewer manual steps, eliminating the need to navigate multiple
PDFs or data systems. As lending volumes increased in H2, the business
sustained throughput without corresponding headcount increases - clear
evidence of scalable infrastructure. Technology efficiencies also reduced the
cost per loan processed across both BTL and short-term mortgage products,
strengthening our ability to grow lending volumes without margin compression.
An example of this operational leverage: each Buy-to-Let underwriter can now
process up to 150m applications per year. Based on a 50%
application-to-completion ratio and an average loan size of £300,000, a team
of six underwriters could support around £900m in BTL originations annually -
demonstrating the power of our streamlined operating model.
Platform-driven product transfers have also enabled early-stage retention
strategies, reduced customer acquisition cost (CAC) and supported long-term
income stability.
Technology adoption extended beyond origination. Internally, machine learning
models are now used to monitor live portfolio performance, surfacing early
warning signs based on borrower-level credit data and historical indicators.
This approach is already helping to pre-empt risk and inform proactive asset
management.
Operational KPIs reinforced the impact. Average short-term mortgages
completion times improved notably in the second half, driven by restructuring
of workflows and better process alignment. Broker satisfaction scores also
rose, particularly among lean brokerages that prioritise frictionless,
high-volume partnerships, a testament to the platform's ease of use and
consistent SLA delivery.
Crucially, these improvements were not made at the expense of delivery.
Despite reducing total staff numbers, we maintained, and in some areas
improved, turnaround times, customer experience scores, and broker
satisfaction levels. This speaks to the resilience of the platform and the
scalability of its tech-driven model.
The internal build of our proprietary tech stack, tailored specifically to the
needs of specialist property finance, remains a key competitive moat. Few new
entrants possess both the domain expertise and capital required to replicate
the same depth of automation, configurability, and scale. These changes
position LendInvest as a structurally leaner business, capable of absorbing
volume increases without proportional cost growth, and with the discipline
needed to protect margins through any future market cycle.
Return to Profitability: Disciplined Execution, Stronger Fundamentals
LendInvest delivered a return to profitability during FY25, following a period
of market-induced pressure and strategic restructuring. This outcome reflects
the execution of a deliberately sequenced plan, to lend more, operate more
efficiently, and scale in a way that builds resilience into the business
model.
While the first half of FY25 was shaped by ongoing market uncertainty and
subdued borrower activity, the second half brought a clear improvement in
funding conditions and sentiment. Against this backdrop, profitability was not
achieved through blunt cost-cutting or short-term fixes. Instead, it was the
result of improved income mix, greater operational leverage, and sharper
pricing discipline, all delivered within a leaner, more focused organisational
structure.
Income Diversification and Capital-Light Growth
FY25 marked the first full year of LendInvest's more 'capital-light' strategy
in action. This involved reducing reliance on warehouse funding and expanding
separate account partnerships - a shift designed to limit exposure to net
interest margin volatility and enhance return on equity.
Fee-based income streams, including servicing, origination, and management
fees from third-party assets under management, grew materially across the year
by 48% to £22m, contributing to a more balanced and predictable revenue mix.
At the same time, interest income remained an important part of the model,
growing by 99% to £15.7m, supporting profitability in areas where direct
lending offered strong returns and product control. This dual approach,
combining scalable fee-based income with selective, efficient lending,
continues to underpin the resilience of the platform.
As part of our strategy to diversify and stabilise income, management made the
decision to retain a portion of the Mortimer 2024 securitisation. This
increases the assets and liabilities on our balance sheet but enables us to
benefit from stable, recurring income, helping to cover fixed costs and
strengthen long-term earnings. Management may at some point sell the residual
interest which would bring forward the earnings and the assets and liabilities
would be de-recognised.
Margin Discipline and Product Optimisation
Margin improvement was achieved through both pricing strategy and funding
efficiency. After a highly competitive period in early FY25, the business took
steps to preserve margin integrity - focusing on transactions with strong
risk-adjusted returns.
Short-Term Mortgages volumes increased in H2, driven by fast turnaround times,
differentiated criteria, and broker trust - but without compressing returns.
In Buy-to-Let, platform enhancements improved conversion and enabled more
accurate pricing at enquiry stage, ensuring tighter spread management.
As swap rates stabilised in H2, pick up became more straightforward and this
allowed for more consistent margin performance - with Q4 seeing a notable
uplift in net lending income contribution per loan.
Cost Leverage and Operating Model Efficiency
Profitability was also supported by improved operational gearing. As detailed
in the previous section, average headcount over FY24 V FY25 reduced from 240
to 203, real estate costs fell with the relocation of the London office, and
technology efficiencies reduced cost per loan processed across BTL and
short-term mortgages.
Notably, these gains were delivered without compromising service or throughput
- a reflection of the scalability of the proprietary tech stack and the early
benefits of building out our Glasgow centre of excellence.
A Platform Positioned for Sustainable Returns
The return to profitability in FY25 was not the end-state - but the
proof-point. It demonstrates that the strategy is working: that we can grow
originations without chasing volume, scale operations without bloating cost,
and build a capital-light model that generates repeatable income.
The platform is now structurally leaner, more diversified, and better
positioned to deliver returns through changing market conditions - with a
funding model and operating structure designed not just for recovery, but for
resilience in any cycle.
Strengthening our team for the next phase of growth
As we continue to build towards sustained profitability and long-term value
creation, we have strengthened our senior leadership team with the appointment
of John Eastgate as Chief Commercial Officer in a non-Board role. John brings
extensive experience across the mortgage and specialist lending sectors and is
already playing a key role in supporting our commercial execution.
John's appointment enables a smooth transition of certain day-to-day
operational responsibilities previously held by Ian Thomas, allowing Ian to
adjust to a part-time working pattern and focus fully on his core role as an
Executive Director. Ian will remain actively involved in shaping the strategic
direction of the business, including his ongoing responsibilities across the
Board, subsidiary governance, and executive leadership forums. This evolution
reflects the maturity of our platform and the natural progression of our
leadership structure as we scale, while ensuring continuity in both vision and
execution.
Medium-Term Strategy
Our medium-term ambition is to scale both lending and asset management,
building a capital-light, tech-driven platform. We aim to double lending and
significantly increase AUM, while driving our fee-based income to strengthen
our margins.
Capital remains central to this. Deepening institutional relationships will
broaden investor access and improve capital alignment, helping fund a wider
range of assets efficiently.
Technology is core to our scalability. Investment in automation, AI
underwriting, and digital tools improves speed, accuracy, and cost control -
enabling margin protection without expanding headcount.
By executing with discipline and maintaining a scalable platform, LendInvest
is well positioned to deliver sustained growth and long-term value in UK
property finance.
Our Business Model
Platform-led. Capital-diverse. Resilient by design.
LendInvest is a technology-enabled property finance platform that connects a
wide spectrum of investors with professionally underwritten, asset-backed UK
mortgage opportunities. Our model has been purpose-built to originate, manage,
and scale property lending across residential, Buy-to-Let, and short-term
finance, efficiently and at pace.
At the heart of our business is a proprietary technology platform that powers
origination, underwriting, servicing, and portfolio management across all our
core products. This in-house platform enables seamless broker integration,
real-time decisioning, and a consistently high standard of borrower experience
- creating operational leverage and competitive advantage.
We match this origination capability with capital drawn from a diversified set
of sources:
● Institutional investors, including global banks and asset managers
● High-net-worth individuals and family offices, accessing
structured debt opportunities
● Sophisticated investors, participating in specific loans through
our investment platform
● Public securitisations, offering scalable, liability-matched
capital
The business model is now increasingly capital-light - shifting emphasis from
net interest margin to recurring, fee-based income across structuring,
servicing, and asset management. This evolution reduces balance sheet
dependency and insulates the business from market-driven funding volatility.
The result is a flexible, durable, and highly scalable lending platform:
● Originate loans in key segments underserved by banks
● Distribute and service those loans for a wide range of investors
● Retain the relationship, technology, and margin - while reducing
risk and capital intensity
This model allows LendInvest to maintain pricing discipline, operate
efficiently, and continue delivering strong risk-adjusted returns across the
cycle - for borrowers and investors alike.
Financial Statements
Audited Year to Year to Change
31 March 31 March
2025 2024
£'m £'m (Restated)
Net interest income 15.7 7.9 99%
Net fee income 22.0 14.9 48%
Net gains on derecognition of financial assets 0.8 (3.2) 125%
Net other operating income 0.1 0.1 (20%)
Net operating income 38.6 19.7 96%
Administrative expenses (36.3) (42.4) 14%
Impairment losses on financial assets (3.5) (8.4) 58%
Total operating expenses (39.8) (50.8) 22%
Loss before tax (1.2) (31.1) 96%
(Gain) / Losses from derivative hedge accounting (0.5) 4.0 (111%)
Exceptional operating costs 0.4 2.7 (85%)
Underlying loss before tax (1.3) (24.4) 95%
Loss after tax (1.6) (23.9) 93%
Gain/(loss) in adjusted EBITDA 3.2 (19.0) 117%
Condensed Consolidated Income Statement
The summary consolidated statement of profit and loss account for the year
ended 31 March 2025 is shown below. The prior year ended 31 March 2024 has
been restated as described in Note 14.
Net Interest Income
Net interest income nearly doubled to £15.7m for the year ended 31 March 2025
(FY24: £7.9m), underlining the continued importance of interest income in
supporting profitability during a year of transition. This result was driven
by a 44% increase in on-balance sheet Assets under Management (AuM) and a 155%
improvement in Net Interest Margins (NIM) to 2.71% (FY24: 1.06%) - supported
by improved funding terms.
While this growth reflects tactical deployment into strong risk-adjusted
return segments, it took place alongside progress in building a more
capital-efficient platform. The proportion of total Platform AuM held
on-balance sheet increased marginally to 21% (FY24: 17%) as we held select
assets to optimise execution and earnings. At the same time, 40% of assets
held were securitised - enabling capital recycling, boosting liquidity and
reducing risk concentration.
Although securitised assets remain on balance sheet under accounting
treatment, they carry lower risk and capital intensity than directly funded
loans. This reinforces our long-term model: balancing selective interest
income generation with scalable, lower-risk, third-party capital strategies to
support consistent, repeatable earnings.
Additionally, reported results reflected a stabilisation in derivative hedge
accounting, with a gain of £0.5m in FY25 compared to a £4.0m loss in FY24.
While not a direct contributor to income in the period, this swing supported a
cleaner interest income result and marked a notable improvement in
year-on-year volatility.
Net Fee Income
Net fee income rose significantly by 48% year-on-year, underscoring the
successful move towards a third-party asset management model. This growth
reflects the expansion of our fee-based revenue streams, particularly from
separate account mandates and servicing income, enabled by increased
third-party AuM.
This strategic emphasis on a capital-light, fee-driven model is delivering
higher margins with a lower risk profile, reinforcing the sustainability and
scalability of our earnings while supporting long-term value creation.
Impairment Losses on Financial Assets
Impairment charges decreased significantly by 58% year-on-year to £3.5m
(2024: £8.4m), reflecting a return to more normalised levels of credit risk.
The elevated charge in the prior year was primarily attributable to a small
number of complex exposures within the Capital Division, specifically in
Structured Property Finance and Development Finance, that were adversely
impacted by macroeconomic volatility.
In contrast, the Mortgage Division continues to demonstrate strong credit
performance, with expected credit losses remaining low. This is underpinned by
the high quality of the mortgage book and the ongoing resilience of the UK
property market. The improvement in impairment levels reinforces the strength
of our underwriting standards and the effectiveness of our portfolio risk
management strategies.
Administrative Expenses
Total administrative expenses decreased by £6.1m (14%) to £36.3m (FY24:
£42.4m), reflecting continued focus on cost optimisation and improved
operational efficiency.
Audited Year to Year to Change
31 March 31 March
2025 2024
£'m £'m (Restated)
Wages and salaries 16.8 20.1 (16%)
Depreciation and amortisation 3.7 3.2 15%
Depreciation of right-of-use asset 0.8 0.7 21%
Fees payable to the auditors for 1.6 1.4 14%
the audit of the financial statements
Fees payable to the auditors for 0.4 0.3 33%
the audit of the prior year financial statements
Share-based payment (credit)/charge (0.4) 1.2 (130%)
Other operating expenditure 13.4 15.5 (14%)
Total administrative expenses 36.3 42.4 (14%)
Key drivers of this reduction include:
● Wages and Salaries: Reduced by £3.3m (16%) to £16.8m (FY24:
£20.1m), primarily due to a 15% reduction in average headcount and the
absence of £1.1m in redundancy costs that were incurred in FY24. This aligns
with our strategy to optimise resource deployment while maintaining
productivity.
● Depreciation and Amortisation: Increased by £0.5m (15%) to £3.7m
(FY24: £3.2m), reflecting continued investment in technology infrastructure,
including internally developed platforms and software capitalisation.
● Depreciation of Right-of-Use Assets: Increased marginally to
£0.8m (FY24: £0.7m), up 21%, following right-sizing of our London footprint
following the relocation of operations from London to Glasgow.
● Audit Fees: Fees for the audit of the current year financial
statements increased to £1.6m (FY24: £1.4m), a 14% increase. Fees for the
audit of the prior year financial statements also increased to £0.4m (FY24:
£0.3m), a 33% increase.
● Share-Based Payment (SBP) Charge: Reversed to a credit of £0.4m
(FY24: charge of £1.2m), representing a 130% swing driven by leavers,
true-ups and expenses to the company share and share option plans.
● Other Operating Expenditure: Reduced by £2.1m (14%) to £13.4m
(FY24: £15.5m), driven by lower professional fees, tighter discretionary
spend controls, and further cost efficiencies realised through business
process reengineering.
This comprehensive reduction in administrative expenses demonstrates strong
execution of our efficiency strategy, enabling us to maintain a scalable cost
base and reinvest savings into strategic growth initiatives
Adjusted EBITDA
The reconciliation between Loss after taxation and Adjusted EBITDA for the
year ended 31 March 2025 is shown below.
Audited Year to Year to Change
31 March 31 March
2025 2024
£'m £'m (Restated)
Loss after tax (1.6) (23.9) (93%)
Corporation Tax 0.4 (7.2) (106%)
(Gain)/Losses from derivative hedge accounting (0.5) 4.0 (111%)
Share-based payment (credit) / expense (0.4) 1.2 (130%)
Depreciation and amortisation 3.7 3.2 15%
Depreciation of right-of-use asset 0.8 0.7 21%
Interest expense - lease liabilities 0.3 0.3 6%
Gain/(loss) in EBITDA 2.8 (21.7) (113%)
Exceptional operating expenses 1 0.4 2.7 (85%)
Gain/(loss) in adjusted EBITDA 3.2 (19.0) (117%)
1.Exceptional operating expenses in FY25 relate to restructuring costs
Segmental analysis
Our Mortgages Division provides mortgages to both professional BTL landlords
and Residential homeowners as well as a range of Short-term Mortgages. The
Capital Division provides larger, more structured finance primarily to
property developers and large property companies.
An analysis of the year ending 31 March 2025 based on these segments is
presented below.
Year to Year to Year to Year to
31 March 31 March 31 March 31 March
2025 2025 2025 2025
Mortgages Capital Central Group
£'m £'m £'m £'m
Total AuM 2,777.7 455.1 - 3,232.8
Principal Investments 546.4 137.5 - 683.9
3rd Party Funded 2,231.3 317.6 - 2,548.9
New lending 1,079.2 151.9 - 1,231.1
Net interest income 9.0 6.7 - 15.7
Net fee income 15.4 6.6 - 22.0
Net gains on derecognition of financial assets - 0.8 - 0.8
Net other income 0.1 - - 0.1
Net operating income 24.5 14.1 (0.0) 38.6
Administrative expenses (11.1) (2.4) (22.8) (36.3)
Impairment on financial assets (0.4) (3.1) - (3.5)
Total operating expenses (11.5) (5.5) (22.8) (39.8)
Profit/(loss) before taxation 13.0 8.6 (22.8) (1.2)
Funds under Management (FuM) reconciliation to and Platform Assets under
Management (AuM)
The reconciliation between Funds under Management (FuM) and Platform Assets
under Management (AuM) at 31 March 2025 is presented below.
As at As At Change
31 March 31 March
2025 2024
£'m £'m (Restated)
Platform Assets under Management (AuM) 3,232.8 2,783.5 16%
Principal Investments 683.9 473.4 44%
3rd Party Funded 2,548.9 2,310.1 10%
Unutilised funding facilities 1,895.8 1,343.8 41%
Principal Investments 629.3 364.6 73%
3rd Party Funded 1,266.5 979.2 29%
Funds under Management (FuM) 5,128.6 4,127.3 24%
Principal Investments 1,323.5 838.0 58%
3rd Party Funded 3,805.1 3,289.3 16%
Principal Investments FuM grew significantly, increasing by 58% year-on-year,
primarily driven by the successful execution of the Mortimer 2024-MIX
securitisation. This transaction, coupled with the expansion of warehouse
funding lines and the introduction of new debt facilities, has materially
strengthened our funding capacity and supported the scaling of Principal
Investment Assets under Management (AuM).
3rd Party FuM also rose by 16% year-on-year, reflecting increased origination
volumes under our separate account Forward Flow arrangements. These flows are
supported by enhanced facilities provided by our strategic funding partners,
aligning with our capital-light model and diversifying revenue streams.
This dual-track growth underscores the successful execution of our strategy to
simultaneously scale principal investments while accelerating 3(rd) Party
capital deployment, enhancing both capital efficiency and recurring fee-based
income.
Balance Sheet
Summary of assets, liabilities, and equity for the period.
Audited As at As At Change
31 March 31 March
2025 2024
£'m £'m (Restated)
Cash and cash equivalents 68.2 55.7 22%
Other receivables 12.8 10.7 19%
Loans and advances 694.2 473.4 47%
Investment securities 34.7 41.1 (15%)
Derivative financial asset 1.9 - -
Other assets 18.7 19.1 (2%)
Total assets 830.5 600.0 38%
Other payables (35.2) (25.6) (39%)
Lease liabilities (5.5) (2.3) (141%)
Derivative financial liability - (2.0) 100%
Interest bearing liabilities (725.0) (514.6) (41%)
Deferred taxation liability (0.4) - -
Total liabilities (766.1) (544.5) (41%)
Net assets 64.4 55.5 16%
Share capital 0.1 0.1 45%
Share premium 55.2 55.2 (0%)
Other reserves 18.6 10.1 85%
Retained Losses (9.5) (9.9) 4%
Total Equity 64.4 55.5 17%
Net assets: Net assets have increased by 16% to £64.4m (31 March 2024:
£55.5m).
Loans and advances: Loans and advances increased by 47% to £694.2m (FY24:
£473.4m), underpinned by a 39% year-on-year increase in new lending. This
reflects the successful execution of our lending strategy, with continued
momentum in origination activity for principal investments using the balance
sheet as well as for third parties.
Investment Securities: Declined in line with the shift towards on-balance
sheet securitisation, positioning the Group for future residual sale
opportunities. No new investments were made during the period.
Lease Liabilities: Increased during the year due to new office leases in
London and Glasgow. The London lease reflects a 53% reduction in footprint,
while the Glasgow office supports regional expansion-together reinforcing the
Group's long-term operational strategy and delivering improved cost efficiency
through strategic relocation.
Interest bearing liabilities: Interest-bearing liabilities rose 41%
year-on-year, broadly in line with the growth in the loan book. This was
primarily due to increased drawdowns on existing revolving facilities and a
new securitisation, positioning the group for future residual sale
opportunities, with corporate debt facilities increasing by 10.8%, reflecting
prudent leverage management in support of scalable growth.
Dividend
The Board is not recommending a final dividend for the year ended 31 March
2025. This decision reflects the Group's retained losses position at the year
end which precludes the payment of dividends. The Board remains committed to
commencing a progressive dividend policy as soon as it is prudent to do so.
Cash Flow Statement
As at 31 March 2025, the Group held cash and cash equivalents of £68.2m,
representing a 22% increase year-on-year (31 March 2024: £55.7m). This growth
reflects strong financing inflows and improved operational and funding
efficiency. Of the total balance, £57.1m is restricted for designated loan
funding purposes (31 March 2024: £38.5 million), supporting continued
origination activity within structured funding vehicles. In contrast,
unrestricted cash decreased to £11m (31 March 2024: £16.8m), reflecting
strategic reinvestment into loan book growth and securitisation readiness.
Audited Year to Year to
31 March 31 March
2025 2024
£'m £'m (Restated)
Cash (used in) /generated from operating activities (196.5) 28.6
Net cash generated from investing activities 3.8 (16.9)
Net cash generated from /(used in) financing activities 205.2 (2.7)
Net increase in cash and cash equivalents 12.5 9.0
Cash and cash equivalents at beginning of the year 55.7 46.7
Cash and cash equivalents at end of the year 68.2 55.7
Going Concern
The Group's business activities together with the factors likely to affect its
future development and position are set out 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 meet 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.
A future securitisation of approximately £300m is planned for 2025 when the
book reaches an optimal level.
Key Performance Indicators
Platform Assets Under Management (AuM)
Definition:
Platform Assets Under Management (AuM) represents the total loan balance we have provided to our customers, encompassing both the LendInvest Mortgages and Capital divisions. This balance reflects the outstanding amount that has not been repaid by a diverse clientele, including homeowners, property investors, SME developers, and landlords.
Revenue from our AuM is generated through fee and interest income. Fees associated with the origination process, such as product, application, valuation, and legal fees, are charged to the customer. Additional fees, including servicing, asset management, and performance fees, are charged to our investors and funding partners. For intermediated loans, expenses such as procuration fees are paid to brokers, and these costs can vary by product.
AuM can be held either on the Group's balance sheet or off-balance sheet. On-balance sheet AuM generates interest income, partially offset by funding costs, including interest and hedging expenses. Strategically, we aim to grow the proportion of off-balance sheet AuM, where assets are managed on behalf of investors, generating recurring fee income without associated liquidity and credit risk.
Platform Funds Under Management (FuM)
Definition:
Platform Funds Under Management (FuM) is the total funding available for lending from our investors and funding partners. This includes both the funds already utilised against our Platform AuM and the funding that is either drawn but unutilised or committed but not yet drawn. FuM excludes any pipeline capital or ongoing fundraising projects.
We raise funding from a diverse array of financial institutions, institutional investors, and individuals. Our funding partners, including BNP Paribas, HSBC, Barclays, Societe Generale, and Lloyds, primarily support our LendInvest Mortgages products via the Group's balance sheet. Additionally, we manage third party accounts on behalf of JP Morgan, Chetwood Financial, and other institutional investors, and serve as the servicer and mortgage originator for various securitisation programmes. In the LendInvest Capital division, we raise capital through funds, separate accounts, syndications, and strategic partnerships.
The funding provided through these investment solutions is used to originate larger and more complex property finance opportunities. The difference between FuM and AuM indicates the remaining lending capacity before the need to raise additional funds or capital for lending.
New Lending
Definition:
New lending includes all new lending originated for 3rd Party Funding and
Principal Investments.
How we measure value for our shareholders
Net Operating Income (NOI)
Definition:
Net Operating Income (NOI) aggregates all revenue from fees and interest income, subtracting the total interest and fee expenses associated with our AuM and FuM.
Adjusted EBITDA
Definition:
Earnings before Interest, Tax, Depreciation, and Amortisation (EBITDA) is a
key measure of underlying profitability. We use an Adjusted EBITDA figure to
exclude non-cash income or expenses. This KPI is important as it supports our
cash flow, supporting reinvestment opportunities or potential distributions.
Our Earnings line, which includes Net Operating Income, already accounts for
directly attributable financing and funding costs against the AuM and FuM.
Profit Before Tax (PBT)
Definition:
Profit Before Tax (PBT) represents the Group's profits before the deduction of
corporation tax, which is the net of NOI and total operating expenses. In a
loss-making year, we may benefit from tax relief.
Diluted Earnings Per Share (EPS)
Definition:
Diluted Earnings Per Share (EPS) measures our Profit After Tax (PAT) earnings
per share, considering all issued share capital plus outstanding options and
equity grants across the Group's share plans. This metric assumes the
conversion of all outstanding equity, providing a comprehensive view of
shareholder value.
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