Lendinvest Plc · LSE:LINV
Lendinvest — FY2024 Earnings Presentation
26 slides from Lendinvest's earnings presentation, Jul 24, 2024
Slide 1: Full year results for 12 months ended 31 March 2024
Full year results for 12 months ended 31 March 2024 24 July 2024
Slide 2: Introduction
Introduction Rod Lockhart Hugo Davies Stephen Shipley Chief Executive Officer Interim Chief Financial Officer Finance Director and Chief Capital Officer Mortgages made simple | 2
Slide 3: Agenda
Agenda 01 Introduction Rod Lockhart, CEO 02 Business Review Hugo Davies, Interim CFO 03 Financial Review Stephen Shipley, Finance Director 04 Outlook and long-term opportunity Rod Lockhart, CEO 05 Appendices Mortgages made simple | 3
Slide 4: Summary
Summary ● Challenging market backdrop for first 9 months of financial year but signs of recovery ● Key strategic objectives progressed ○ Released our fully integrated Mortgages Portal & product transfer process ○ Expansion of funding partnerships ○ Successfully refinanced £42.5m strategic funding fa
Slide 5: About us
About us ● Pioneering mortgage platform that develops technology to simplify the process of securing a mortgage ● Connect borrowers with diverse funding sources and offer investors access to the UK mortgage market ● We simplify the mortgage application process by reducing extensive paperwork and sho
Slide 6: Business Review
Business Review
Slide 7: Challenging market backdrop but tentative signs of progress
Challenging market backdrop but tentative signs of progress Base rate rising to its highest point since 2008 ¹ ● Base rate - 9 increases in FY 2023 and FY 20241 BoE Base Rate BoE Base Rate ● Swap rates - continued volatility, however now Forecast below 4% from peak of over 5% SONIA 5 Year Swap Rate
Slide 8: A year of transition preparing us for a market rebound
A year of transition preparing us for a market rebound ● Repaid £127.5m in mezzanine funding and raised £81.5m in new 3 year strategic capital 1 Less debt, longer ● Continued simplification of funding model, with total debt reduced by £645m, while FuM up 15% maturities and more ● Completed our fifth
Slide 9: Building strong foundations for the future
Building strong foundations for the future FuM +15% YoY to £4.1 billion ● BNP Paribas added £100m to our short-term mortgages financing syndicate ● New £500m separate account mortgage partnership ● £200m separate account short-term mortgages partnership ● Issued our fourth listed bond and repaid our
Slide 10: Mortgages Capital
Mortgages Capital Provides fast, flexible and simple mortgages to Dedicated division for our specialist investment homeowners, experienced property investors and products, including funds and our investment portfolio landlords. platform Key achievements in period: Key achievement in period: ○ New le
Slide 11: Financials
Financials
Slide 12: Group profit & loss
Group profit & loss Year to 31 Year to 31 Group P&L (£'m) Change % March 2024 March 2023 Platform Assets under Management 2,783 2,587 8% Several one-offs have negatively impacted FY24 performance: On balance sheet 477 1,123 (58%) Off balance sheet 2,306 1,464 58% ● Net gain/(loss) on derecognition o
Slide 13: Group FY24 H2 vs FY24 H1
Group FY24 H2 vs FY24 H1 Half year to Half year to Group (£'m) 30 September Change (%) 31 March 2024 2023 Net interest income substantially reduced as a result of Net interest income 2.2 6.3 (65)% £3.7m unrealised loss on hedge accounting in H2, compared to £0.3m loss in H1. Net fee income 9.3 6.6 4
Slide 14: Balance sheet
Balance sheet Group Balance Sheet £'m 31 March 2024 31 March 2023 Change (%) Cash and cash equivalents 55.7 46.7 19% Trade and other receivables 11.9 6.1 95% The balance sheet has been significantly de-leveraged, evidenced by a £645m (56%) reduction in debt and concurrently Loans and advances 477.0
Slide 15: Strengthening the balance sheet and reducing risk profile
Strengthening the balance sheet and reducing risk profile % of AuM which is on Balance Sheet Cash & cash equivalents Unrestricted cash* 17% £55.7m £17.2m -26pps vs March 2023 +19% vs March 2023 +16% vs March 2023 ● Material reduction in proportion of loan book held on balance sheet as a result of de
Slide 16: Outlook and long-term opportunity
Outlook and long-term opportunity
Slide 17: Our technology remains a key competitive advantage
Our technology remains a key competitive advantage Rapid product launch of Seamless broker journey Underwriting technology lending products ● Positive broker experience for a ● Able to support 100 new BTL ● Same day product launch and network of >4,400 registered applications per underwriter per pri
Slide 18: Clear market opportunity
Clear market opportunity ● We have moved all of our mortgage products onto a single platform to facilitate cross selling, product transfers and product switches providing opportunities for growth and operating leverage. ● The new Basel 3.1 capital reforms are likely to impact many specialist banks,
Slide 19: Strong foundations and more positive outlook
Strong foundations and more positive outlook Large broker Cost Substantial Market- On track to network & efficiencies funding leading return to excellent through headroom Technology profitability reputation technology Mortgages made simple | 19
Slide 20: Q&A
Q&A
Slide 21: Disclaimer
Disclaimer Certain statements in this presentation 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
Slide 22: For more information
For more information: lendinvest.com investorrelations@lendinvest.com lendinvest.com corporate.lendinvest.com Mortgages made simple 22
Slide 23: Appendices
Appendices
Slide 24: Cost base restructured
Cost base restructured Employee related costs ● Headcount Peaked at 277 in H1 FY23 ● In FY24 a restructuring process reduced headcount by 27% compared to start of period ○ The restructuring mainly related to central services and technology resource ○ Origination capacity has been maintained to ensur
Slide 25: Adjusted EBITDA to Profit (Loss)/Before Tax
Adjusted EBITDA to Profit (Loss)/Before Tax Adjusted EBITDA defined as Group profit or loss before finance income, finance expenses, income tax, depreciation and amortisation, share-based payment charge, and exceptional operational expenses. Mortgages made simple | 25
Slide 26: Segmental analysis of profit & loss
Segmental analysis of profit & loss Segmental (£'m) Mortgages Capital Central Group New divisional structure implemented at the 2,254 529 - 2,783 beginning of the period. Platform Assets under Management On balance sheet 335 142 - 477 Mortgages division focused on lower value, higher volume lending.