Lendinvest inches closer to profit as fintech eyes housebuilding boost
Lendinvest is nearing a return to profitability as the property fintech eyes a boost from the new government’s housebuilding plans.
The London-listed firm reported a pre-tax loss of £1.7m for the six months to 30 September, 2024, compared to a £15.7m loss during the same period last year.
Lendinvest’s bottom line was helped by a 39 per cent increase in net operating income to £17.4m, with net income from fees rising 71 per cent to £11.3m.
Meanwhile, the firm’s operating expenses dropped to £19.1m from £28.2m as it reduced headcount by 16 per cent to around 200 employees.
To make further cost savings, the company said it would reduce its London office space and relocate some roles to Glasgow.
Lendinvest, which operates an online marketplace for property finance, enjoyed 30 per cent growth in new lending for the half year to £539.1m.
It is targeting a full-year profit for its 2025 financial year after swinging to a £27.3m loss during the previous 12 months.
The firm said on Monday that it achieved run-rate profitability in September and was “cautiously optimistic” of breaking even in the coming months.
Lendinvest’s stock price is down 87 per cent since it listed on the London Stock Exchange in 2021. Its shares fell 1.6 per cent in early trading on Monday.
Chief executive Rod Lockhart said that while LendInvest’s recent performance was “encouraging”, volatility surrounding interest rates due to macroeconomic and geopolitical uncertainity could “present headwinds” in the second half of the financial year.
“However, we are reassured by supportive UK government measures aimed at catalysing housebuilding, improving energy efficiency and professionalising the buy-to-let sector,” Lockhart added.
“As such, we remain cautiously optimistic about achieving run-rate profitability during the rest of the year.”
Keir Starmer’s government has committed to building 1.5m new homes over the course of the parliament, which would mean returning annual housebuilding to the highest levels since the 1970s.
Ministers are pushing ahead with major reforms to the planning regime to meet their targets, although a closely-watched survey last week pointed to a “sustained downturn” in residential construction that could pose a challenge.