8th April 2022
Strong demand for Buy-to-Let drives record Platform Assets Under Management
LendInvest plc (LSE: LINV, "LendInvest" or the "Group"), a technology-focused property finance asset manager, today announces its trading update for the year ended 31st March 2022.
31 Mar 2022
31 Mar 2021
30 Sep 2021
Platform Assets Under
Funds Under Management
● Platform Assets Under Management ("Platform AuM"), which represents deployed capital, increased by 36% year-on-year, and by 18% vs H1 2022, driven by strong demand for our Buy-to-Let offering.
● Funds Under Management ("FuM"), which represents committed and deployed capital, increased by 18% year-on-year, and by 2% vs H1 2022. Whilst headroom at 31 March 2022 of almost £800m supports our expected growth trajectory in the medium term, we continue to have strong engagement with investors and expect to complete a number of transactions in the first half of the current financial year.
● Launch of EPiC 'green mortgage' product range that incentivises landlords to refurbish and increase the environmental efficiency of their properties. The product range has been highly successful leading to a 29% increase in Buy-to-Let applications.
● Appointment of Nina Spencer to the LendInvest Board in January as an Independent Non-Executive Director. Nina is a highly experienced fintech and asset management executive with operational, regulatory and ESG expertise. Nina will also be a member of the Audit & Risk, Nomination and Remuneration Committees.
● Appointment of Greg Medcraft as Senior Advisor to the LendInvest Board in March. Greg has a wide breadth of experience, having previously been Commissioner and Chairman for Australia's ASIC, as well as having roles for the OECD, the IMF and the World Economic Forum.
● Further strengthening of our executive team with key hires across Homeowner Lending, Technology, Funds and Investor Relations.
Rod Lockhart, Chief Executive Officer of LendInvest, said:
"We have continued to achieve strong growth in Platform AuM and FuM, driven by the success of our innovative, proprietary technology and strong demand for our Buy-to-Let products. It was a huge achievement to pass the £2 billion Platform AuM milestone in January. It took more than 10 years to reach £1 billion of Platform AuM in July 2019 and only 30 months to double it.
"I'm delighted to welcome a number of new colleagues to the executive team and Board; their insight and range of expertise will be invaluable as we continue to scale our platform and grow our business. Looking forward, I remain confident that our unique offering will allow us to continue to disrupt the market and make property finance simple for more borrowers and investors."
Housing market conditions have remained favourable despite the recent base rate rises. In fact, in March, the Halifax house price index rose 11% year-on-year, its highest level since records began in 1983, driven by ongoing strong demand for housing and a shortage of properties for sale.
The dedication of our team of talent, our high-quality customer service and our continued investment in technology has contributed to our strong growth. Given these factors together with a favourable housing market, the excess level of FuM over Platform AuM, and despite an increased inflationary environment we expect full year profit before tax to be in-line with market expectations.
LendInvest via Tulchan Communications
+44 20 7353 4200
Rod Lockhart, Chief Executive Officer
+44 20 3846 6823
Berenberg (Nominated Advisor and Joint Broker)
+44 20 3207 7800
Panmure Gordon (Joint Broker)
+44 20 7886 2906
Tulchan Communications (Financial PR)
+44 20 7353 4200
LendInvest is a technology-focused property finance asset manager in the United Kingdom. Over a 13 year period, we have developed proprietary technology and digital solutions that have allowed us to capture market share from incumbents and attract significant third-party capital.
We use our technology to disrupt the £1.6 trillion* property finance market which is dominated by manual paper processes and poor customer care. Our platform, unencumbered by legacy systems, offers attractive products and pricing to borrowers and intermediaries through a seamless and customer-focused process. In addition, it also provides us with a highly scalable origination platform for future Platform AuM growth.
As an asset manager, we have designed a variety of investment solutions and products for our investors. These range from funds and separate accounts to financial partnerships and RMBS. These products are tailored to address their specific risk return and investment criteria. Through the platform, investors from around the world gain exposure to attractive UK property finance assets without requiring them to establish direct lending operations or borrower services.
Our innovative business model is underpinned by our proprietary end-to-end technology infrastructure, which facilitates operating leverage and delivers better pricing for our customers. This drives efficiency and underpins our business' roadmap for growth.
*Source, FCA -The outstanding value of all residential mortgage loans was £1.6 trillion at the end of Q4 2021.
The Group defines Platform AuM as the sum of (i) the total amount of outstanding loans and advances (including accrued interest, and gross of impairment provisions and fair value adjustments), (ii) off-balance sheet assets, which represents the total amount of outstanding loans and advances (including accrued interest) that the Group originates but does not hold on its balance sheet, comprising those loans that are held by its off-balance sheet entities. Off-balance sheet assets are not presented net of any impairment provisions relating thereto.
The directors of LendInvest view Platform AuM as a useful measure because it is used to analyse and evaluate the volume of revenue generating assets of the platform on an aggregate basis and is therefore helpful for understanding the performance of the business.
The Group defines FuM as the aggregate sum available to the Group under each of its funding lines. The Group's FuM are used to originate revenue generating AuM. The directors of LendInvest view the difference between the Group's FuM and Platform AuM as the headroom for future growth.
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 materially 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 the Company 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.