Business
Trading update
Trading update.
About this update from Lendinvest Plc
[{"type":"text","content":"\n\nNOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION.\n \nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.\n \nLEI: 213800NWMK3O4UWP9N91 \n5 September 2023\n \nLendInvest plc\nTrading update\nLendInvest plc (LSE: LINV) (\"LendInvest\" or the \"Company\"), the UK's leading platform for mortgages, today announces a trading update for the four month period to 31 July 2023, and updated guidance for the financial year ending 31 March 2024.\nLendInvest continues to make good progress on several fronts. Completions in respect of our Flow Bridging product remain strong. Our recent launch into the large Specialist Residential segment is on track and is building good momentum. Following the completion of a new forward-flow funding arrangement, the prospects for our Buy-to-Let ('BTL') proposition are strong. We also continue to develop our market-leading proprietary technology to make the lending process even better and more competitive.\nHowever, the market backdrop continues to remain challenging with the prospect of further base rate increases required to bring down persistently high inflation and with house prices starting to fall and lower levels of mortgage approvals.\nAgainst this backdrop, recent trading in the first four months of FY24 has fallen short of internal budgets, with a shortfall against budget in the Company's profit before tax of £4.5m (unaudited) over this four month period.\nThis primarily relates to the LendInvest Capital division (our fund management and syndication business which specialises in larger, more complex loans (i.e. over £5m), including Development Finance and Structured Bridging). The shortfall in this division is driven by two factors:\n1. Performance fees earned from third-party funds were below expectations, reflecting the fact that lending margins have been squeezed by rising interest rates and that development projects are being impacted by rising costs and are taking longer to complete; and\n \n2. A shortfall in the volume of loan originations, where the business earns arrangement fees on new lending. This partly reflects the macroeconomic...