In its unaudited results, the firm said this was driven by “accelerated recoveries of non-performing assets, disposal of low-margin assets, lower lending volumes, and a higher degree of one-off costs”. 

This included the sale of a £250m low-margin buy-to-let (BTL) portfolio at a loss of £10.6m. 

LendInvest also reported an 11% fall in new lending, totalling £886.5m at the end of its 2024 financial year, which was lower than the figure of £994.8m the year before. 

Its net operating income also declined by 57% to £23.5m. 

When LendInvest closed its Q1 period last year, it said it was “disappointed” in its financial performance and lowered its profit projection. By Q4, the firm said there had been a turnaround during the latter half of its financial year. 

Sponsored

Conversations you need to have with landlords before the Renters’ Rights Act

Sponsored by BM Solutions

Speaking about its annual results, Rod Lockhart (pictured), chief executive of LendInvest, said the firm was “confident” about returning to profitability. 

He said: “Our strategic focus on technology, funding diversification and exceptional customer service has bolstered our resilience during what has undoubtedly been a challenging year, but also a year of important strategic transition. The successful launch of our Mortgages Portal is a testament to our innovative approach and commitment to delivering operational efficiency and growth.” 

LendInvest launched its Mortgages Portal last year to enhance the broker and customer experience, as well as improve cross-selling opportunities.

 

LendInvest positive about the year ahead 

LendInvest saw its platform assets under management (AUM) rise by 8% to £2.8bn, which it owed to a 13% increase in BTL and short-term mortgages. 

Its funds under management went up by 14% annually to £4.1bn, driven by £700m in new separate account mandates. 

LendInvest said it strengthened its balance sheet and de-risked the business over the year, as it repaid its second £55m retail-eligible bond and launched a new £39m retail-eligible bond. 

The firm also reduced its debt by 56% to £645m. 

Additionally, the firm completed its largest residential mortgage-backed securitisation (RMBS) at £410m and obtained a £42.5m three-year strategic funding facility. This saw the firm reduce its mezzanine borrowing by £30m. 

LendInvest also restructured the company’s headcount to around 200 employees, reducing payroll costs by around a quarter each year. 

Lockhart continued: “We remain confident in and focused on our target of returning to profitability during the current financial year. 

“Our team’s strategic initiatives have laid a strong foundation for future success, and I am particularly thankful for their dedication over the last 12 months.”