30th Nov 2022 13:04
(Alliance News) - Lendinvest PLC on Wednesday announced that its profit had risen in the first half, as funds under management also increased.
The London-based non-bank mortgage lender said that pretax profit was up 45% to GBP14.8 million in the first six months ended September 30, from GBP10.2 million for the equivalent period last year. The company said that it expects pretax profit for all of financial year 2023 to be in line with financial 2022.
For the first half, Lendinvest's revenue dropped by 8.2% to GBP42.5 million from GBP46.3 million a year ago. The company said the drop was driven by "lower average balance sheet loans on our short-term lending products, and lower performance fees from our funds".
The company saw a 20% increase in FuM, rising to GBP3.44 billion from GBP2.88 billion a year ago. According to Lendinvest, the increase was pushed by investment from JPMorgan Chase & Co and Lloyds Bank PLC. The company's JP Morgan separate account was upsized to GBP1.00 billion, up from GBP7.3 million, an increase of 38%.
The increase "is testament to the trust that leading financial institutions have in our talent and our technology," Lendinvest Chief Executive Officer Rob Lockhart said.
Lendinvest proposed an interim dividend of 1.30 pence per share, compared with no interim dividend in the first half of last year. Diluted earnings per share increased by 63% to 10.4p from 6.4p a year ago.
"We are well-positioned to weather the current difficult macroeconomic backdrop, given our robust business model, diverse sources of capital and ability to respond with new products in a fast-changing environment," Lockhart said.
Lendinvest shares were up 5.8%, trading at 82.50p per share at midday on Wednesday in London.
By Harvey Dorset; [email protected]
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