Lendinvest: Property fintech ‘cautiously optimistic’ for return to profitability in 2025
Property fintech Lendinvest has said it expects to report full-year results in line with market expectations and is “cautiously optimistic” for a return to profitability in 2025, as the mortgage market rebounds.
The firm on Thursday cited “rising confidence in the UK property market” following a period of volatility last year, largely due to expectations for easing inflation, lower borrowing costs and falling swap rates.
Latest figures from the Bank of England showed mortgage approvals in February jumped to their highest level since the mini-budget, with the prospect of interest rate cuts set to support the market in the months to come.
Lendinvest’s company-compiled consensus has forecast a net operating income of £36m and pretax loss of £15.9m for the year ending on 31 March 2024.
Assets under management across Lendinvest’s platform were £2.78bn on 31 March, up 7.6 per cent from the previous year and 3.3 per cent from the end of the previous half-year.
Increased competition among mortgage lenders saw the AIM-listed firm swing to a loss of £15.1m in the six months to the end of September and forced it to cut more than a quarter of its staff.
However, the firm said on Thursday that the pace of mortgage recovery notably picked up in the final three months of last year, with its buy-to-let applications, offers and completions roughly doubling from the previous quarter.
Lendinvest touted its “enhanced pricing agility, optimised operating capacity, and a superior customer journey, driven by our new proprietary next-gen mortgages portal”.
Meanwhile, its funds under management rose 14.5 per cent from the previous year to £4.13bn, although this figure was down slightly from £4.17bn at the end of last September.
It said the year-on-year increase was mainly driven by the securitisation of £410m worth of prime buy-to-let mortgages, as well as the successful closing of a number of new separate account mandates.
Chief executive Rod Lockhart said: “This past year has been a tale of two halves for us at Lendinvest. The first half was characterised by significant internal restructuring – we prioritised liquidity, balance sheet flexibility, and reducing our cost base – crucial steps towards securing the financial health of the business. In the second half of the year we are now beginning to see the fruits of our labour. The benefits of our early-year actions are becoming apparent, and we’re experiencing a turnaround in the operating environment.”
He added: “There are also encouraging signs in the broader market landscape, and our achievement of a record number of buy-to-let offers in February reflects the robust demand and confidence in our product offerings and service. As we move forward, our sights are firmly set on bolstering these efforts, with a clear focus on driving towards our goal of returning to profitability during FY2025.”