LendInvest profit stable at £14.3m in 2023

According to its financial results for the year to 31 March 2023, its platform assets under management, which is the total market value of investments that the company has made, rose by 21 per cent year-on-year to £2.6bn.

The company said that this was driven by a 21 per cent increase in buy-to-let platform assets under management.

The lender added that its funds under management jumped by 23 per cent year-on-year to £3.6bn.

LendInvest added that adjusted earnings before interest, taxes, depreciation and amortization fell by nearly a third to £14.3m, compared to £20.3m in 2022.

The company attributed this to the “expected launch costs” for its new residential mortgage product as well as increased impairment charges to £5.9m. This is up from £4.4m in 2022.

The impairment charges were largely related to two legacy defaulted loans, LendInvest said.

Rod Lockhart (pictured), chief executive of LendInvest, said: “I am pleased with the progress we have made over the past 12 months, despite a challenging market environment. We have continued to grow platform assets under management, build new funding relationships, introduce new products and make significant advancements in technology.

“Our ability to adapt to changing market dynamics has been evident through our product offerings and pricing strategies. Additionally, we have also focused on reducing our credit risk profile and enhancing our capital efficiency.”

He added: “Whilst the economic backdrop remains uncertain, we remain confident in the resilience of our business model and funding strategy, the increasingly capital-efficient nature of our lending and the long-term opportunities for our disruptive, differentiated offering.”