Lendinvest Plc · LSE:LINV
Lendinvest — H1 FY2025 Earnings Presentation
24 slides from Lendinvest's earnings presentation, Dec 9, 2024
Slide 1: 6 Months Results Ended 30 September 2024
6 Months Results Ended 30 September 2024 9 December 2024
Slide 2: Introduction
Introduction Rod Lockhart Hugo Davies Stephen Shipley Chief Executive Officer Chief Capital Officer & Chief Financial Officer Managing Director LI Mortgages Property finance made simple | 2
Slide 3: Agenda
Agenda 1 Performance & Strategy Update Rod Lockhart, CEO 2 Market & Business Review Hugo Davies, Chief Capital Officer & MD LendInvest Mortgages 3 Financial Review Stephen Shipley, Chief Financial Officer 4 Outlook and Long-Term Opportunity Rod Lockhart, CEO 5 Q&A 6 Appendices Property finance made
Slide 4: About LendInvest
About LendInvest ● Transforming Property Finance: Redefining mortgages and property lending through technology, customer-focused products, and dynamic pricing for speed and simplicity. ● Fast-Growing Assets Under Management: Delivering consistent Investor returns at class-leading industry levels, su
Slide 5: Performance & Strategy Update
Performance & Strategy Update Performance & -Strategy Rod Lockhart Chief Executive Update Officer Property finance made simple | 5
Slide 6: FY25 - HY1 Summary
FY25 - HY1 Summary ● Positive signs of market recovery - but interest rates remain volatile, fueled by +39% YoY +30% YoY macro-economic & socio-political uncertainties. ● Key Objectives Progressing: ○ Lending Growing ○ Debt Reducing ○ Net Operating Income increasing ○ Costs Lowering ● Path to Profit
Slide 7: Strategic Progress in H1
Strategic Progress in H1 1 ● Growth in Funds Under Management FuM: Increased by 12% year-on-year to £4.67bn ● Expanded Partnership with JP Morgan to £1.5bn, and renewed £300 Million Financing Continuing to Attract Syndicate with BNP Paribas, Barclays, and HSBC High Quality Capital ● Assets Under M
Slide 8: Strategic Progress in H1
Strategic Progress in H1 + 3 ● Debt Reduction: Debt fell by 29% year-on-year to £601.7m Fortifying the ● Credit Risk Mitigation: Balance sheet assets reduced to 19% of AuM (from 31% at Sep‘23 Balance Sheet ● Improved Liquidity: Cash and equivalents rose to £71.6m (from £55.7m at Mar‘24 ● Net Asset
Slide 9: Market & Business Review
Market & Business Review Market & Business Hugo Davies Review - Chief Capital Officer & Managing Director LINV Mortgages
Slide 10: Housing Market Green Shoots
Housing Market Green Shoots ● Base Rate¹: The base rate stands at 4.75%, after 0.25% cuts in August and November. BoE Base Rate BoE Base Rate ● Swap Rates: Less volatile than FY24; dipped below Forecast 4% in September but now slightly above. SONIA 5 Year Swap Rate ● CPIH2: The Consumer Prices Index
Slide 11: Mortgages Division
Mortgages Division Driving Growth in Lending, Funding, and Customer-Focussed Innovation to Deliver Stable Profitability Growth in Lending Capital Raising Products & Enhancements ● Significant increase in ● Successful securitisation ● New product launches new mortgage lending ● Upsized JP Morgan & ●
Slide 12: Capital Division
Capital Division Scaling investment opportunities with resilient growth - a significant driver of profitability for the group. Asset Management Model Key Metrics Growth Drivers ● Shifting to an asset ● 71% YoY growth in Net ● Secured Credit Fund III management approach Fee Income. launched, targetin
Slide 13: Buy-To-Let: Tech-Driven Transformation
Buy-To-Let: Tech-Driven Transformation Scaling Efficiency Across Operations to Strengthen Profitability Operational Improvements Scalable Model Tangible Benefits ● BTL now operates on a highly ● 40% reduction in cost to ● Increased underwriter scalable model. originate since FY24. capacity: 100+ app
Slide 14: Financial Review
Market & Business Review Financial Hugo DaviesReview - Chief Capital Officer & Managing Director LINV Mortgages
Slide 15: Group Profit & Loss
Group Profit & Loss ● The loss before tax has improved 89% to £1.7m, with underlying loss before tax of £1.3m and an adjusted EBITDA gain of £0.3m. ● Net Interest Income has increased 5% in line with 32% lower Principal Investments AuM reflecting the ongoing implementation of our capital-light strate
Slide 16: Balance Sheet
Balance Sheet ● Cash and Cash Equivalents have increased 29% over the period with £9.2m in unrestricted cash available at the end of the period as we lead up to our next securitisation transaction. ● Loans and Advances rose by 17% to £556.9m. This growth was primarily driven by a 30% growth in new l
Slide 17: Strengthening The Balance Sheet & Reducing Risk Profile
Strengthening The Balance Sheet & Reducing Risk Profile 81% £71.6m cash & cash equivalents £2.2m impairments of AuM managed on behalf Third Party Capital 29% vs March 2024 69% vs Sep 2023 £7.1m 12pps vs March 2024 ● Material increase in proportion of loan book funded by third Party capital as a
Slide 18: Strategic Priorities & Long-term Opportunity
Market & Business Review Strategic Priorities & Long-term Opportunity Hugo Davies - Chief Capital Officer & Managing Director LINV Mortgages
Slide 19: Growing Lending and Expanding Product Reach
Growing Lending and Expanding Product Reach ● Lending continues to show strong signs of growth, especially for out Buy-to-let products ● Streamlined Residential Mortgage Proposition will be launched in H2, to support further growth in the owner-occupied market. ● Further iteration of products will c
Slide 20: Securing Capital: Enabling Scalable Growth
Securing Capital: Enabling Scalable Growth AuM 9% YoY to £2.94 billion Immediate Opportunities: ● 3rd Party Managed Assets increased as a % of total AuM to 81% 69% 2023 ● Drive growth through new separate account ● Mortgage Division AuM is up 17% year-on-year lead by strong partnerships. growth
Slide 21: Driving Profitability & Managing Costs
Driving Profitability & Managing Costs ● Expanding Efficiency Gains: Scaling operational improvements to widen "positive jaws." ● Profitability Momentum: Building on Septemberʼs run-rate profitability with disciplined growth. ● Strategic Cost Focus: Realising sustained savings through optimised opera
Slide 22: Q&A
Market & Business Review Q&A Hugo Davies - Chief Capital Officer & Managing Director LINV Mortgages
Slide 23: 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 “anticipateˮ, “believeˮ, “intendˮ, “estimateˮ, “expectˮ, “mayˮ, “willˮ, “seekˮ, “continue
Slide 24: Property finance made simple.
Property finance made simple. For more information: investorrelations@lendinvest.com lendinvest.com corporate.lendinvest.com