Lendinvest (LINV) investor relations material

Executive summary

• Achieved a transformative year with a return to profitability, delivering H2 profit before tax of £500,000 and a 117% increase in EBITDA to £3.2m year-over-year.

• Lending volumes grew 39% to £1.23bn, with mortgages division up 62%, and platform assets under management rising 16% to £3.23bn.

• Shifted to a capital-light, asset management model, with 79% of AUM managed for third parties.

• Embedded structural cost reductions, with operating costs down 22% and headcount flat, driving efficiency gains.

• Recognized as Digital Lender of the Year 2025, reflecting strong customer experience and market validation.

Financial highlights

• Net fee income rose 48% to £22m, and net interest income nearly doubled to £15.7m year-over-year.

• Administration costs fell 22%, with staff costs down 15% and restructuring costs reduced by £2.3m.

• Impairment charges dropped 58% to £3.5m, reflecting improved credit quality and legacy exposure roll-off.

• Net assets increased 16% to £64m; loans and advances rose 47% to £694m; cash and equivalents up 22% to £68m.

• Hedge accounting swung to a £0.5m gain from a £4m loss in the prior year.

Outlook and guidance

• FY26 focus on disciplined execution, operating efficiency, and profit growth in line with market expectations.

• Medium-term ambition to double lending volumes and AUM, leveraging existing products and deepening institutional relationships.

• Continued automation and AI adoption to scale without significant headcount increases.

• Expectation of exceptional profit growth in coming years, with a clear pathway to scalable profitability.

• Dividend resumption planned once profitability and balance sheet are fully restored.