July 21st 2025

LendInvest plc

AUDITED RESULTS FOR THE YEAR ENDED 31 MARCH 2025

Driving Strong Growth and Enhanced Efficiency in an Improved Market

LendInvest plc (LSE: LINV; "LendInvest", the "Company" or the "Group") is a leading alternative property finance platform in the UK. The LendInvest Mortgages Division provides a range of term and short-term mortgages to both professional Buy-to-Let landlords and Homeowners. The LendInvest Capital Division provides larger, more structured finance primarily to property developers and investors.  

CEO's Statement (Rod Lockhart)

Building Momentum and Delivering Results

FY25 marks a turning point for LendInvest. Having returned to profitability in September, we delivered a sustained performance throughout the second half of the year - achieving profit before tax of £0.5m for H2 and an adjusted EBITDA of £3.2m for the year. This was a critical milestone for the business, and a clear demonstration that our strategy is working.

This progress reflects a combination of strong execution, tough decisions, and a focused effort across the business to simplify, scale, and reset the platform for long-term growth. That included reshaping our cost base, strengthening our capital markets relationships, and deepening our investment in the technology that underpins how we lend, underwrite, and serve our customers.

Total new lending grew 39% year-on-year to £1.23bn, with particularly strong momentum in our Mortgages Division, where lending rose 62%. These results were supported by a more stable market together with the strength of our service-led proposition - combining deep underwriting expertise with a tech-led platform that accelerates decisioning, reduces friction, and builds trust with borrowers and brokers.

Our revenue model combines fee income from third-party capital with interest income from our principal investments. Net fee income rose 48% to £22m (FY24: £14.9m), reflecting strong growth in the assets that we originate and manage for others. Net interest income almost doubled to £15.7m (FY24: £7.9m), supported by significant new and renewed financing partnerships on improved terms. Together, these two complementary streams provide resilience, scalability, and flexibility - with each reinforcing the strength of our broader platform.

Platform Assets under Management (AuM) increased by 16% to £3.23bn, with 79% of those assets now managed on behalf of third parties - a clear signal of our strategic shift to a capital-light model and the confidence our investors place in the business.

Operationally, we've made the business leaner and more scalable. Average headcount fell 15% in FY25, the London office footprint was right-sized, and Glasgow is now a growing centre of excellence across risk, underwriting, operations, finance, marketing, product, tech, and servicing. These efficiencies haven't compromised service: turnaround times improved, application-to-offer durations dropped 20%, and platform productivity rose significantly - with the BTL team achieving over 50% throughput gains.

We improved product transfer capabilities, helping brokers retain customers and giving borrowers a smoother refinancing path. As this scales, it will cut acquisition costs and increase lifetime value. We also enhanced products across Buy-to-Let, Residential, and short-term mortgages, and completed our sixth public securitisation. Together with five new or renewed funding lines, this supports scalable growth without compromising control or margin.

We were pleased to achieve profitability in H2 across EBITDA and PBT, recording a profit before tax of £0.5m, compared to a loss before tax in H1 of £1.7m - an improvement of 129% between H1 and H2.

While the strengthening in H2 was not sufficient to deliver full-year profitability on a statutory basis, we narrowed our annual loss before tax to -£1.2m (FY24: -£31.1m), an improvement of 96%. Adjusted EBITDA swung to a positive £3.2m from an £19.0m loss last year (EBITDA improved 113% from £21.7m loss  to a £2.8m positive). These figures mark a significant recovery - and the strength of H2, in particular, gives us confidence that our platform is on the right trajectory.

Outlook

Our focus in FY26  is on disciplined execution: driving lending growth, improving efficiency, and growing profitability in line with current market expectations for the year.

We start from a stronger, leaner base, with automation and operating leverage enabling growth without expanding fixed overheads. Continued investment in platform automation and product upgrades, like our Product Transfer tool for intermediaries, is improving retention and boosting originations without raising acquisition costs.

We remain committed to cost discipline, margin improvement, and sustainable growth across our core products.

Rod Lockhart
Chief Executive Officer

 

Summary Financials

1: Restatements detailed as per p73 of the annual report

FY25 Strategic Highlights

Delivering against our strategy: Lend more. Operate more efficiently. Return to profitability.

1. Lend More

In FY25, we significantly strengthened our funding base and grew lending across all major product lines.

●    Funds Under Management (FuM) increased by 24% to £5.13bn, driven by growth in 3^rd party mandates, resulting in a 48% increase in Net Fee Income to £22m.

●    Assets Under Management (AuM) rose 16% to £3.23bn, supported by the strong performance of the Mortgages Division, particularly in Buy-to-Let.

Key capital milestones:

●     JP Morgan Separate Account upsized by £500m to £1.5bn

●     Separate Account with a UK savings bank upsized by £500m to £1bn

●     £300m syndicate with BNP Paribas and HSBC renewed on improved terms

●     £300m facility with Lloyds renewed

●     £200m Separate Account with a credit fund expanded to include development loans

●     New £250m revolving facility with Societe Generale secured on competitive terms

●     Sixth securitisation, Mortimer 2024-MIX, completed - including our first securitisation of owner-occupied loans and attracting 17 investors

Lending performance:

●    Total lending rose 39% YoY to a record £1.23bn

●     Mortgages Division lending grew 62%, supported by stronger pricing and service improvements - including enhancements to the Broker Portal

●     BTL originations grew 113% YoY, while Short Term Mortgages  grew 53% YoY in H2

●     Development finance was flat in H1, but H2 originations grew 88% YoY, supported by improved market conditions

●     Application-to-offer times now average 11-14 days, with Short Term Mortgages application to completion times improving by 30% YoY

2. Operate More Efficiently

We enhanced scalability and productivity across the platform without proportionate cost increases.

●     Total operating expenses reduced by 22%, from £50.8m to £39.8m

●     Administrative expenses fell by 14%, including a 15% reduction in people-related costs

●     Continued migration of roles to our Glasgow Centre of Excellence, strengthening resilience and scalability

●     Technology and operating model changes delivered meaningful gains in operating leverage

Examples of efficiency improvements:

●     Each BTL underwriter now processes up to 6 cases a day, up from 4 in FY24 - a 50% increase.

●     Based on an average loan size of £300,000 and a 50% conversion rate, six underwriters could now support up to £900m in annual originations - or £150m per UW per year - up from £100m in FY24.

●     Operational efficiency gains of 50% delivered across BTL and STM teams

●     Improved processes enabled delivery of FY25 lending targets without headcount uplift

●     Broker NPS reached 85 at offer and 72 at completion

3. Return to Profitability

Our disciplined execution and stronger income mix restored profitability in H2.

●     We have been profitable for PBT in H2, recording a profit before tax of £0.5m compared to a loss before tax in H1 of £1.7m - an improvement of 129%. YoY we improved by 96% to a FY25 loss of £1.2m

●     Annual Net Operating Income almost doubled to £38.6m (FY24: £19.7m), driven by record lending and strong fee income

●     FY25 Adjusted EBITDA swung to a positive £3.2m (FY24: -£19.0m), up 117% YoY (EBITDA £2.8m FY24: -21.7m)

●     Loss before tax improved by 96% YoY, narrowing to £1.2m (FY24: £31.1m)

Analysts and investors presentation: 9.00am on July 21st 2025

A webcast for analysts and investors will be hosted by Rod Lockhart, Chief Executive Officer; Hugo Davies, Chief Capital Officer and MD LendInvest Mortgages; and Stephen Shipley, Chief Financial Officer at 9.00am today, July 21st 2025. A playback facility will also be available in due course.

To access the webcast, please register here

Enquiries:

LendInvest

Rod Lockhart, Chief Executive Officer  

Hugo Davies, Chief Capital Officer & MD of LendInvest Mortgages

Stephen Shipley, Chief Financial Officer

Chris Semple, Head of Corporate Communications  & Investor Relations                                                                          

press@lendinvest.com

investorrelations@lendinvest.com

+44 (0)7575582855

Panmure Liberum (NOMAD and Broker) 

Atholl Tweedie / David Watkins

+44 (0)20 7886 2500

Forward-looking statements

Certain statements in this announcement are forward-looking statements. In some cases, these forward looking statements can be identified by the use of forward looking terminology including the terms "anticipate", "believe", "intend", "estimate", "expect", "may", "will", "seek", "continue", "aim", "target", "projected", "plan", "goal", "achieve" and words of similar meaning or in each case, their negative, or other variations or comparable terminology. Forward-looking statements are based on current expectations and assumptions and are subject to a number of known and unknown risks, uncertainties and other important factors that could cause results or events to differ material from what is expressed or implied by those statements. Many factors may cause actual results, performance or achievements of LendInvest to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Important factors that could cause actual results, performance or achievements of LendInvest to differ materially from the expectations of LendInvest, include, among other things, general business and economic conditions globally, industry trends, competition, changes in government and changes in regulation and policy, changes in its business strategy, political and economic uncertainty and other factors. As such, undue reliance should not be placed on forward-looking statements. Any forward-looking statement is based on information available to LendInvest as of the date of the statement. All written or oral forward-looking statements attributable to LendInvest are qualified by this caution. Other than in accordance with legal and regulatory obligations, LendInvest undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Nothing in this announcement should be regarded as a profit forecast.

Inside information

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 (as it forms part of retained EU law as defined in the European Union (Withdrawal) Act 2018).

Chairman's Statement

Having stepped into the role of Chair in March 2025, I write this introduction with both a fresh perspective and longstanding familiarity.

As an Independent Non-Executive Director since the IPO in 2021, I have had the opportunity to closely observe LendInvest's evolution as a public company, its strategic recalibration in the face of the end of the ultra-low interest rate era, and its steadfast commitment to innovation and value creation.

While my appointment came at the end of the reporting period, I am pleased to begin my tenure at a moment of renewed confidence.

FY25 was a year of clear progress: while H1 FY25 continued to be impacted by the effects of recalibrating the business to a new external environment, the business returned to profitability in H2 with net fee income increasing by 48% year-on-year, and its adjusted EBITDA for the year as a whole increased by 117% to £3.2m (EBITDA increased 113% to £2.8m). These outcomes reflect disciplined execution of the strategy outlined last year - to simplify the business, stabilise margins, and build for sustainable growth.

LendInvest today is a more resilient, more scalable business. The capital-light platform now generates the majority of its income from fees rather than its principal investments; operating leverage has improved markedly; and our investment in technology continues to pay dividends - both in efficiency gains and in delivering a better experience to our customers and capital providers.

Looking ahead, I believe the opportunity for LendInvest remains compelling. The UK alternative property-lending market offers substantial headroom for growth, and our dual-engine model - connecting underserved borrowers with a diverse base of investors - is well positioned to capture it.

When reflecting on our IPO and our journey as a listed company on the AIM market, it's clear that the business has undergone significant transformation. We successfully deployed the capital raised at IPO to build out a highly specialised mortgage lending platform, expanding into the Buy-to-Let segment and capturing meaningful market share. We invested in technology to enhance speed, transparency, and service quality for our customers and partners.

The macroeconomic environment has, of course, evolved considerably. The sharp rise in interest rates and the resulting shift in UK mortgage market dynamics required us - like many alternative lenders - to retrench and recalibrate our model to protect the long-term health of the business. These changes have not been without difficulty, particularly for our shareholders, our team, our valued brokers and borrowers, and our platform investors.

Operating as a public company has brought both opportunities and challenges. While the capital that came with listing supported our early growth, it's also clear that the associated costs of operating as a listed company as well as the constraints - including limited shareholder liquidity which drives share price volatility, and challenges in aligning incentives for retention and reward - have created burdens of overhead cost and complexity for a business of our scale.

Nonetheless, we continue to operate the company in the best interests of all stakeholders and remain particularly mindful of our responsibilities towards our public market shareholders who placed their trust in the company on listing and subsequently. Our near-term focus is on growing profitability, capital generation, and long-term sustainability - priorities which we believe serve all stakeholders.

Market Backdrop

The UK property finance market in FY25 was defined by growing stability and the early signs of recovery after a prolonged period of challenges and sluggish growth.

While market volumes remained below long-term averages, the direction of travel improved meaningfully. For alternative lenders and credit investors, the year marked a turning point - with falling rates, moderating inflation, and for the best part, renewed clarity in funding markets creating more favourable conditions for growth.

We started the year with the Bank of England base rate at 5.25%, but ended it in March 2025 at 4.25%, following a series of consistent reductions. This shift, alongside less volatile swap rates, created a more stable backdrop for pricing - enabling us to manage interest rate risk more effectively while remaining competitive across all products. As a result, we unlocked new opportunities for broker clients, reignited investor confidence, and delivered a record year for mortgage origination, driven by optimised execution across both short-term mortgages and buy-to-let.

For landlords, the income backdrop remained strong: private rental inflation continued to outpace general inflation, underpinned by structural supply shortages in the housing market. Demand remained strongest in value-accretive investment strategies - such as refurbishment, HMO conversions, and professionally managed lets - segments in which specialist lenders have a distinct competitive advantage.

Headline CPI inflation rose 2.6% in the 12-months to March 2025, reflecting a gradual easing of price

pressures across the economy. House prices stabilised, with Nationwide reporting a 3.9% annual increase in the 12 months to March 2025. Mortgage approvals rose from a low of around 61,100 per month at the start of the financial year to approximately 64,300 by March 2025 (though the Stamp Duty changes created a spike in demand in March 2025). While overall transaction volumes remain constrained, investor and borrower sentiment improved consistently through the second half of the year, as expectations for a rate-driven recovery strengthened.

Labour market conditions softened marginally, with unemployment rising to 4.5% by March 2025.

However wage growth, while higher than where the Bank of England would like, remained robust -

supporting affordability and, in turn, credit performance. Core mortgage-eligible demographics

remained well supported, and employment levels continued to sustain underlying borrower affordability.

From a credit investor perspective, performance remained resilient - supporting demand for income-

generating opportunities backed by real assets such as buy-to-let.

Institutional appetite for high-quality property finance exposure improved as broader volatility eased. Private credit and public securitisation spreads generally rallied over the course of the year, with AAA bonds tightening by as much as 10bps at one stage, reflecting both increased investor confidence in structured finance but importantly, the desire to allocate capital to highly rated, investment grade securities with less correlation to the whims of the global socio-political agenda. For investors seeking yield with security, this asset class has, again, offered a compelling proposition in an unpredictable world- a world where specialist lenders, or alternative platforms such as our own, with both the origination scale and risk discipline, were best placed to create and capture value.

Looking ahead, the outlook for the market in FY26 is increasingly constructive, with rates expected to continue falling, inflation nearing target, and borrower sentiment improving, the market environment is shifting in favour of well-capitalised, tech-enabled lenders with differentiated funding and platform advantages. While challenges will inevitably emerge - as they have in recent years - we are well positioned to benefit from this next phase of the cycle, with the best technology platform, the right partnerships, the right investors, and a strong track record of performance in specialist segments where growth is accelerating.

Core Performance

Lending: More Lending, Same Discipline

A critical part of our recovery strategy in FY25 was to lend more, with a deliberate focus on the segments and structures where the business could originate high-quality loans with strong risk-adjusted returns. While the wider mortgage market remained subdued, our specialist platform and broker-led origination model enabled the business to grow lending volumes across several core segments, with total lending rising 39% YoY to a record £1.23bn.

Short-Term Mortgages lending was the standout performer. Transaction speeds remained at the heart of this product's value proposition, and our ability to deliver fast, reliable funding to brokers and borrowers gave us a clear edge over traditional lenders. Demand from property professionals, developers, and auction buyers rebounded steadily in H2, and we responded by deploying capital at pace, without compromising on underwriting standards. Time-to-fund metrics improved significantly through the year, reinforcing the platform's competitive advantage in short-term finance.

Even in the Buy-to-Let (BTL) sector, where landlords are pivoting strategies in response to ongoing yield challenges, there were enough 'windows of opportunity' (openings in the market where falls in swap rates increased product options and ultimately, affordability) to nudge the sector back into growth mode. UK Finance reported that financing for purchases and remortgages was up 58.9% and 41.7% respectively.  Our fully digital and smart BTL product proposition, focused on speed, transparency, and broker usability, gained traction, with our level of purchases and remortgages up 129% and 24% respectively. During the year, we expanded our intermediary panel, improved quoting tools, and optimised product features to improve conversion rates, with strong Q4 momentum carrying into FY26.

Residential lending was reshaped in response to challenging conditions. Higher interest rates led to higher affordability assessments which constrained demand for much of the year, particularly among near-prime borrowers. In response, we reoriented our proposition to better serve underserved segments including key workers, self-employed professionals, and for those borrowers with credit profiles that require a specialist touch. We continue to see market opportunity and growth potential in these cohorts, aligning closely with LendInvest's appetite to alternative property finance solutions where traditional banks pull back. As the macro backdrop improves and we roll out our revamped distribution strategy, the repositioned product is expected to gain share.

Development finance saw a year of stabilisation, shaped by a difficult macro environment for SME house builders. High interest rates, elevated construction costs, and subdued planning activity continued to limit demand, and origination volumes remained broadly flat year-on-year. That said, momentum began to build in the second half, supported by multiple base rate cuts, improved sentiment, and growing political focus on housing delivery. Enquiry volumes in H2 FY25 rose 35% versus the prior year, and we introduced tactical funding solutions through new capital partners while continuing to develop a scalable, long-term strategy for the segment.

Throughout FY25, the business remained selective in deploying resources. Lending priorities were based on margin, scale, and operational efficiency.  We concentrated our efforts where returns were strongest - such as short-term mortgages and BTL.

Where volumes or returns were lower - such as Residential - the focus shifted to product refinement and cost control. This ensured both top-line growth and a clear path to profitability.

Tech-enabled origination continued to underpin all product categories. Automation, data-driven underwriting, and real-time broker dashboards accelerated the end-to-end lending process and improved consistency. This not only improved the borrower and broker experience, but also helped to ensure operational scalability as volumes increased. The continued roll-out of our proprietary originations engine supported better decisioning, faster completions, and more efficient case management.

Lending in FY25 did not rely on a broad market rebound. It reflected a clear strategy: to lean into segments where our platform has competitive advantage, to maintain pricing discipline, and to prioritise origination where margins and capital efficiency align.

Operational Efficiency: Leaner, Smarter, More Scalable

As part of the strategic shift initiated in FY24, we took decisive steps throughout FY25 to reshape our operating model for efficiency, scalability, and long-term margin improvement. This was not a one-off cost-cutting exercise, but a structural realignment designed to reduce overheads, simplify the business, and embed technology-led processes across every function.

A key focus was optimising our operational footprint. The London office was right-sized, relocating to a smaller, more suitable space that better reflects the hybrid and flexible nature of today's working environment. At the same time, we deepened our investment in Glasgow - not simply as a cost-effective alternative, but as a strategic growth centre.

Our Glasgow hub has rapidly evolved into a centre of excellence across key functions including risk, underwriting, operations, finance, marketing, product, tech, and servicing.

We've continued to build out high-calibre teams there, tapping into a strong local talent pool with deep financial services expertise. This move enables us to scale core operations in a way that is operationally efficient, culturally aligned, and structurally future-facing.

FY25 also marked the first full year with all core mortgage products - Buy-to-Let, Residential, and Short-Term Mortgages - operating on a single, unified origination and processing platform. This consolidation delivered a range of tangible benefits. Real-time API integrations now pull key data into a single underwriting screen, significantly reducing manual handling and underwriter processing time. Brokers can submit enquiries in under 90 seconds, repeat cases auto-fill, and completions can occur in as little as five working days using Automated Valuation Models (AVMs) and dual legal representation - all without relying on third-party platforms.

Productivity improved materially across the year. Underwriters now reach final decisions with fewer manual steps, eliminating the need to navigate multiple PDFs or data systems. As lending volumes increased in H2, the business sustained throughput without corresponding headcount increases - clear evidence of scalable infrastructure. Technology efficiencies also reduced the cost per loan processed across both BTL and short-term mortgage products, strengthening our ability to grow lending volumes without margin compression.

An example of this operational leverage: each Buy-to-Let underwriter can now process up to 150m applications per year. Based on a 50% application-to-completion ratio and an average loan size of £300,000, a team of six underwriters could support around £900m in BTL originations annually - demonstrating the power of our streamlined operating model.

Platform-driven product transfers have also enabled early-stage retention strategies, reduced customer acquisition cost (CAC) and supported long-term income stability.

Technology adoption extended beyond origination. Internally, machine learning models are now used to monitor live portfolio performance, surfacing early warning signs based on borrower-level credit data and historical indicators. This approach is already helping to pre-empt risk and inform proactive asset management.

Operational KPIs reinforced the impact. Average short-term mortgages completion times improved notably in the second half, driven by restructuring of workflows and better process alignment. Broker satisfaction scores also rose, particularly among lean brokerages that prioritise frictionless, high-volume partnerships, a testament to the platform's ease of use and consistent SLA delivery.

Crucially, these improvements were not made at the expense of delivery. Despite reducing total staff numbers, we maintained, and in some areas improved, turnaround times, customer experience scores, and broker satisfaction levels. This speaks to the resilience of the platform and the scalability of its tech-driven model.

The internal build of our proprietary tech stack, tailored specifically to the needs of specialist property finance, remains a key competitive moat. Few new entrants possess both the domain expertise and capital required to replicate the same depth of automation, configurability, and scale. These changes position LendInvest as a structurally leaner business, capable of absorbing volume increases without proportional cost growth, and with the discipline needed to protect margins through any future market cycle.

Return to Profitability: Disciplined Execution, Stronger Fundamentals

LendInvest delivered a return to profitability during FY25, following a period of market-induced pressure and strategic restructuring. This outcome reflects the execution of a deliberately sequenced plan, to lend more, operate more efficiently, and scale in a way that builds resilience into the business model.

While the first half of FY25 was shaped by ongoing market uncertainty and subdued borrower activity, the second half brought a clear improvement in funding conditions and sentiment. Against this backdrop, profitability was not achieved through blunt cost-cutting or short-term fixes. Instead, it was the result of improved income mix, greater operational leverage, and sharper pricing discipline, all delivered within a leaner, more focused organisational structure.

Income Diversification and Capital-Light Growth

FY25 marked the first full year of LendInvest's more 'capital-light' strategy in action. This involved reducing reliance on warehouse funding and expanding separate account partnerships - a shift designed to limit exposure to net interest margin volatility and enhance return on equity.

Fee-based income streams, including servicing, origination, and management fees from third-party assets under management, grew materially across the year by 48% to £22m, contributing to a more balanced and predictable revenue mix. At the same time, interest income remained an important part of the model, growing by 99% to £15.7m, supporting profitability in areas where direct lending offered strong returns and product control. This dual approach, combining scalable fee-based income with selective, efficient lending, continues to underpin the resilience of the platform.

As part of our strategy to diversify and stabilise income, management made the decision to retain a portion of the Mortimer 2024 securitisation. This increases the assets and liabilities on our balance sheet but enables us to benefit from stable, recurring income, helping to cover fixed costs and strengthen long-term earnings. Management may at some point sell the residual interest which would bring forward the earnings and the assets and liabilities would be de-recognised.

Margin Discipline and Product Optimisation

Margin improvement was achieved through both pricing strategy and funding efficiency. After a highly competitive period in early FY25, the business took steps to preserve margin integrity - focusing on transactions with strong risk-adjusted returns.

Short-Term Mortgages volumes increased in H2, driven by fast turnaround times, differentiated criteria, and broker trust - but without compressing returns. In Buy-to-Let, platform enhancements improved conversion and enabled more accurate pricing at enquiry stage, ensuring tighter spread management.

As swap rates stabilised in H2, pick up became more straightforward and this allowed for more consistent margin performance - with Q4 seeing a notable uplift in net lending income contribution per loan.

Cost Leverage and Operating Model Efficiency

Profitability was also supported by improved operational gearing. As detailed in the previous section, average headcount over FY24 V FY25 reduced from 240 to 203, real estate costs fell with the relocation of the London office, and technology efficiencies reduced cost per loan processed across BTL and short-term mortgages.

Notably, these gains were delivered without compromising service or throughput - a reflection of the scalability of the proprietary tech stack and the early benefits of building out our Glasgow centre of excellence.

A Platform Positioned for Sustainable Returns

The return to profitability in FY25 was not the end-state - but the proof-point. It demonstrates that the strategy is working: that we can grow originations without chasing volume, scale operations without bloating cost, and build a capital-light model that generates repeatable income.

The platform is now structurally leaner, more diversified, and better positioned to deliver returns through changing market conditions - with a funding model and operating structure designed not just for recovery, but for resilience in any cycle.

Strengthening our team for the next phase of growth

As we continue to build towards sustained profitability and long-term value creation, we have strengthened our senior leadership team with the appointment of John Eastgate as Chief Commercial Officer in a non-Board role. John brings extensive experience across the mortgage and specialist lending sectors and is already playing a key role in supporting our commercial execution.

John's appointment enables a smooth transition of certain day-to-day operational responsibilities previously held by Ian Thomas, allowing Ian to adjust to a part-time working pattern and focus fully on his core role as an Executive Director. Ian will remain actively involved in shaping the strategic direction of the business, including his ongoing responsibilities across the Board, subsidiary governance, and executive leadership forums. This evolution reflects the maturity of our platform and the natural progression of our leadership structure as we scale, while ensuring continuity in both vision and execution.

Medium-Term Strategy

Our medium-term ambition is to scale both lending and asset management, building a capital-light, tech-driven platform. We aim to double lending and significantly increase AUM, while driving our fee-based income to strengthen our margins.

Capital remains central to this. Deepening institutional relationships will broaden investor access and improve capital alignment, helping fund a wider range of assets efficiently.

Technology is core to our scalability. Investment in automation, AI underwriting, and digital tools improves speed, accuracy, and cost control - enabling margin protection without expanding headcount.

By executing with discipline and maintaining a scalable platform, LendInvest is well positioned to deliver sustained growth and long-term value in UK property finance.

Our Business Model

Platform-led. Capital-diverse. Resilient by design.

LendInvest is a technology-enabled property finance platform that connects a wide spectrum of investors with professionally underwritten, asset-backed UK mortgage opportunities. Our model has been purpose-built to originate, manage, and scale property lending across residential, Buy-to-Let, and short-term finance, efficiently and at pace.

At the heart of our business is a proprietary technology platform that powers origination, underwriting, servicing, and portfolio management across all our core products. This in-house platform enables seamless broker integration, real-time decisioning, and a consistently high standard of borrower experience - creating operational leverage and competitive advantage.

We match this origination capability with capital drawn from a diversified set of sources:

●     Institutional investors, including global banks and asset managers

●     High-net-worth individuals and family offices, accessing structured debt opportunities

●     Sophisticated investors, participating in specific loans through our investment platform

●     Public securitisations, offering scalable, liability-matched capital

The business model is now increasingly capital-light - shifting emphasis from net interest margin to recurring, fee-based income across structuring, servicing, and asset management. This evolution reduces balance sheet dependency and insulates the business from market-driven funding volatility.

The result is a flexible, durable, and highly scalable lending platform:

●     Originate loans in key segments underserved by banks

●     Distribute and service those loans for a wide range of investors

●     Retain the relationship, technology, and margin - while reducing risk and capital intensity

This model allows LendInvest to maintain pricing discipline, operate efficiently, and continue delivering strong risk-adjusted returns across the cycle - for borrowers and investors alike.

 

Financial Statements

Audited		Year to 31 March 2025 £'m	Year to 31 March 2024 £'m (Restated)	Change
Net interest income		15.7	7.9	99%
Net fee income		22.0	14.9	48%
Net gains on derecognition of financial assets		0.8	(3.2)	125%
Net other operating income		0.1	0.1	(20%)
Net operating income		38.6	19.7	96%
Administrative expenses		(36.3)	(42.4)	14%
Impairment losses on financial assets		(3.5)	(8.4)	58%
Total operating expenses		(39.8)	(50.8)	22%
Loss before tax		(1.2)	(31.1)	96%
(Gain) / Losses from derivative hedge accounting		(0.5)	4.0	(111%)
Exceptional operating  costs		0.4	2.7	(85%)
Underlying loss before tax		(1.3)	(24.4)	95%
Loss after tax		(1.6)	(23.9)	93%
Gain/(loss) in adjusted EBITDA		3.2	(19.0)	117%

 

Condensed Consolidated Income Statement

The summary consolidated statement of profit and loss account for the year ended 31 March 2025 is shown below. The prior year ended 31 March 2024 has been restated as described in Note 14.

Net Interest Income

Net interest income nearly doubled to £15.7m for the year ended 31 March 2025 (FY24: £7.9m), underlining the continued importance of interest income in supporting profitability during a year of transition. This result was driven by a 44% increase in on-balance sheet Assets under Management (AuM) and a 155% improvement in Net Interest Margins (NIM) to 2.71% (FY24: 1.06%) - supported by improved funding terms.

While this growth reflects tactical deployment into strong risk-adjusted return segments, it took place alongside progress in building a more capital-efficient platform. The proportion of total Platform AuM held on-balance sheet increased marginally to 21% (FY24: 17%) as we held select assets to optimise execution and earnings. At the same time, 40% of assets held were securitised - enabling capital recycling, boosting liquidity and reducing risk concentration.

Although securitised assets remain on balance sheet under accounting treatment, they carry lower risk and capital intensity than directly funded loans. This reinforces our long-term model: balancing selective interest income generation with scalable, lower-risk, third-party capital strategies to support consistent, repeatable earnings.

Additionally, reported results reflected a stabilisation in derivative hedge accounting, with a gain of £0.5m in FY25 compared to a £4.0m loss in FY24. While not a direct contributor to income in the period, this swing supported a cleaner interest income result and marked a notable improvement in year-on-year volatility.

Net Fee Income

Net fee income rose significantly by 48% year-on-year, underscoring the successful move towards a third-party asset management model. This growth reflects the expansion of our fee-based revenue streams, particularly from separate account mandates and servicing income, enabled by increased third-party AuM.

This strategic emphasis on a capital-light, fee-driven model is delivering higher margins with a lower risk profile, reinforcing the sustainability and scalability of our earnings while supporting long-term value creation.

Impairment Losses on Financial Assets

Impairment charges decreased significantly by 58% year-on-year to £3.5m (2024: £8.4m), reflecting a return to more normalised levels of credit risk. The elevated charge in the prior year was primarily attributable to a small number of complex exposures within the Capital Division, specifically in Structured Property Finance and Development Finance, that were adversely impacted by macroeconomic volatility.

In contrast, the Mortgage Division continues to demonstrate strong credit performance, with expected credit losses remaining low. This is underpinned by the high quality of the mortgage book and the ongoing resilience of the UK property market. The improvement in impairment levels reinforces the strength of our underwriting standards and the effectiveness of our portfolio risk management strategies.

Administrative Expenses

Total administrative expenses decreased by £6.1m (14%) to £36.3m (FY24: £42.4m), reflecting continued focus on cost optimisation and improved operational efficiency.

Key drivers of this reduction include:

●     Wages and Salaries: Reduced by £3.3m (16%) to £16.8m (FY24: £20.1m), primarily due to a 15% reduction in average headcount and the absence of £1.1m in redundancy costs that were incurred in FY24. This aligns with our strategy to optimise resource deployment while maintaining productivity.

●     Depreciation and Amortisation: Increased by £0.5m (15%) to £3.7m (FY24: £3.2m), reflecting continued investment in technology infrastructure, including internally developed platforms and software capitalisation.

●     Depreciation of Right-of-Use Assets: Increased marginally to £0.8m (FY24: £0.7m), up 21%, following right-sizing of our London footprint following the relocation of operations from London to Glasgow.

●     Audit Fees: Fees for the audit of the current year financial statements increased to £1.6m (FY24: £1.4m), a 14% increase. Fees for the audit of the prior year financial statements also increased to £0.4m (FY24: £0.3m), a 33% increase.

●     Share-Based Payment (SBP) Charge: Reversed to a credit of £0.4m (FY24: charge of £1.2m), representing a 130% swing driven by leavers, true-ups and expenses to the company share and share option plans.

●     Other Operating Expenditure: Reduced by £2.1m (14%) to £13.4m (FY24: £15.5m), driven by lower professional fees, tighter discretionary spend controls, and further cost efficiencies realised through business process reengineering.

This comprehensive reduction in administrative expenses demonstrates strong execution of our efficiency strategy, enabling us to maintain a scalable cost base and reinvest savings into strategic growth initiatives

Adjusted EBITDA

The reconciliation between Loss after taxation and Adjusted EBITDA for the year ended 31 March 2025 is shown below.

1.Exceptional operating expenses in FY25 relate to restructuring costs

Segmental analysis

Our Mortgages Division provides mortgages to both professional BTL landlords and Residential homeowners as well as a range of Short-term Mortgages. The Capital Division provides larger, more structured finance primarily to property developers and large property companies.

An analysis of the year ending 31 March 2025 based on these segments is presented below. 

Funds under Management (FuM) reconciliation to and Platform Assets under Management (AuM)

The reconciliation between Funds under Management (FuM) and Platform Assets under Management (AuM) at 31 March 2025 is presented below.

Principal Investments FuM grew significantly, increasing by 58% year-on-year, primarily driven by the successful execution of the Mortimer 2024-MIX securitisation. This transaction, coupled with the expansion of warehouse funding lines and the introduction of new debt facilities, has materially strengthened our funding capacity and supported the scaling of Principal Investment Assets under Management (AuM).

3rd Party FuM also rose by 16% year-on-year, reflecting increased origination volumes under our separate account Forward Flow arrangements. These flows are supported by enhanced facilities provided by our strategic funding partners, aligning with our capital-light model and diversifying revenue streams.

This dual-track growth underscores the successful execution of our strategy to simultaneously scale principal investments while accelerating 3^rd Party capital deployment, enhancing both capital efficiency and recurring fee-based income.

Balance Sheet

Summary of assets, liabilities, and equity for the period.

Net assets: Net assets have increased by 16% to £64.4m (31 March 2024: £55.5m).

Loans and advances: Loans and advances increased by 47% to £694.2m (FY24: £473.4m), underpinned by a 39% year-on-year increase in new lending. This reflects the successful execution of our lending strategy, with continued momentum in origination activity for principal investments using the balance sheet as well as for third parties.

Investment Securities: Declined in line with the shift towards on-balance sheet securitisation, positioning the Group for future residual sale opportunities. No new investments were made during the period.

Lease Liabilities: Increased during the year due to new office leases in London and Glasgow. The London lease reflects a 53% reduction in footprint, while the Glasgow office supports regional expansion-together reinforcing the Group's long-term operational strategy and delivering improved cost efficiency through strategic relocation.

Interest bearing liabilities: Interest-bearing liabilities rose 41% year-on-year, broadly in line with the growth in the loan book. This was primarily due to increased drawdowns on existing revolving facilities and a new securitisation, positioning the group for future residual sale opportunities, with corporate debt facilities increasing by 10.8%, reflecting prudent leverage management in support of scalable growth.

Dividend

The Board is not recommending a final dividend for the year ended 31 March 2025. This decision reflects the Group's retained losses position at the year end which precludes the payment of dividends. The Board remains committed to commencing a progressive dividend policy as soon as it is prudent to do so.

Cash Flow Statement

As at 31 March 2025, the Group held cash and cash equivalents of £68.2m, representing a 22% increase year-on-year (31 March 2024: £55.7m). This growth reflects strong financing inflows and improved operational and funding efficiency. Of the total balance, £57.1m is restricted for designated loan funding purposes (31 March 2024: £38.5 million), supporting continued origination activity within structured funding vehicles. In contrast, unrestricted cash decreased to £11m (31 March 2024: £16.8m), reflecting strategic reinvestment into loan book growth and securitisation readiness.

Going Concern

The Group's business activities together with the factors likely to affect its future development and position are set out in the Strategic report. The Directors have assessed the Group's funding position and confirm that no committed funding lines mature within 12 months from the date of approval of these financial statements.

Directors have a reasonable expectation that the Group will have adequate resources to continue to operate for a period of at least 12 months from the signing of these accounts including severe yet plausible downside scenarios that Group will have sufficient funds to meet its liabilities as they fall due for that period. Therefore, it is on this basis that the Directors have continued to prepare the accounts on a going concern basis. More information on the Directors' assessment of going concern is set out in the Directors' report.

A future securitisation of approximately £300m is planned for 2025 when the book reaches an optimal level.

Key Performance Indicators

Platform Assets Under Management (AuM)

Definition:

Platform Assets Under Management (AuM) represents the total loan balance we have provided to our customers, encompassing both the LendInvest Mortgages and Capital divisions. This balance reflects the outstanding amount that has not been repaid by a diverse clientele, including homeowners, property investors, SME developers, and landlords.

Revenue from our AuM is generated through fee and interest income. Fees associated with the origination process, such as product, application, valuation, and legal fees, are charged to the customer. Additional fees, including servicing, asset management, and performance fees, are charged to our investors and funding partners. For intermediated loans, expenses such as procuration fees are paid to brokers, and these costs can vary by product.

AuM can be held either on the Group's balance sheet or off-balance sheet. On-balance sheet AuM generates interest income, partially offset by funding costs, including interest and hedging expenses. Strategically, we aim to grow the proportion of off-balance sheet AuM, where assets are managed on behalf of investors, generating recurring fee income without associated liquidity and credit risk.

Platform Funds Under Management (FuM)

Definition:

Platform Funds Under Management (FuM) is the total funding available for lending from our investors and funding partners. This includes both the funds already utilised against our Platform AuM and the funding that is either drawn but unutilised or committed but not yet drawn. FuM excludes any pipeline capital or ongoing fundraising projects.

We raise funding from a diverse array of financial institutions, institutional investors, and individuals. Our funding partners, including BNP Paribas, HSBC, Barclays, Societe Generale, and Lloyds, primarily support our LendInvest Mortgages products via the Group's balance sheet. Additionally, we manage third party accounts on behalf of JP Morgan, Chetwood Financial, and other institutional investors, and serve as the servicer and mortgage originator for various securitisation programmes. In the LendInvest Capital division, we raise capital through funds, separate accounts, syndications, and strategic partnerships.

The funding provided through these investment solutions is used to originate larger and more complex property finance opportunities. The difference between FuM and AuM indicates the remaining lending capacity before the need to raise additional funds or capital for lending.

New Lending

Definition:

New lending includes all new lending originated for 3rd Party Funding and Principal Investments.

How we measure value for our shareholders

Net Operating Income (NOI)

Definition:

Net Operating Income (NOI) aggregates all revenue from fees and interest income, subtracting the total interest and fee expenses associated with our AuM and FuM. 

Adjusted EBITDA

Definition:

Earnings before Interest, Tax, Depreciation, and Amortisation (EBITDA) is a key measure of underlying profitability. We use an Adjusted EBITDA figure to exclude non-cash income or expenses. This KPI is important as it supports our cash flow, supporting reinvestment opportunities or potential distributions. Our Earnings line, which includes Net Operating Income, already accounts for directly attributable financing and funding costs against the AuM and FuM.

Profit Before Tax (PBT)

Definition:

Profit Before Tax (PBT) represents the Group's profits before the deduction of corporation tax, which is the net of NOI and total operating expenses. In a loss-making year, we may benefit from tax relief.

Diluted Earnings Per Share (EPS)

Definition:

Diluted Earnings Per Share (EPS) measures our Profit After Tax (PAT) earnings per share, considering all issued share capital plus outstanding options and equity grants across the Group's share plans. This metric assumes the conversion of all outstanding equity, providing a comprehensive view of shareholder value.