LendInvest lending up 24 per cent as failed flotation costs £2.2m

However, pulling out of it’s planned stock market listing cost the lender £2.2m and pushed it to a pre-tax loss of £3.2m, down from a profit of £500,000 for the year ended March 2019.

It added the £2.2m would have been capitalised if the transaction had been completed.

Gross profit rose from £26.5m to £30.3m but the lender’s operating profit fell from £3.3m to £0.6m.

The group said this was the result of investment in technology and staff costs as the headcount increased from 155 to 210.

Securitisations

LendInvest added that its cash position had been strengthened by its second securitisation transaction completed shortly before the end of the financial year.

In June 2019, the group completed a securitisation of £259m on its buy-to-let portfolio. Its second securitisation, also completed on its buy-to-let portfolio in March this year, was for 285m.

Due to the timing of the year end reporting date, the group said there had been limited impact on its results from the Covid-19 pandemic.

Chief executive Rod Lockhart (pictured) said: “Despite the undoubtedly challenging couple of months we have all endured, stepping into the role of CEO this year as the business has continued to scale; investing in innovation and throughout it all, maintaining a consistent EBITDA for the sixth year running, has shown me we certainly have reason to be optimistic for the year ahead.”

He added that LendInvest had accomplished a “huge amount over the past year”, including the two securitisations and making its break into the home owner mortgage market with the launch of its first regulated product.