LendInvest sees 2020 profits slashed by aborted IPO costs

By Oliver Smith on Monday 22 June 2020

Alternative Lending

An additional £2.2m in exceptional costs related to the delayed listing.

LendInvest sees 2020 profits slashed by aborted IPO costs
Image source: Rod Lockhart/LendInvest.

After five years of ever-increasing revenue and profits, LendInvest suffered a fall in its operating profit last year to £0.6m (down from £3.3m in FY2019) as a result of its cancelled IPO.

The stock market listing which was explored last summer led to exceptional costs of £2.2m for the business which, along with additional hiring and investment in infrastructure, pushed down earnings.

Revenue and loan originations jumped 49 per cent and 23 per cent respectively to £108.4m and £925.2m for the year ending 31 March (up from £72.7m and £747.4m in FY2019).

“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,” said CEO Rod Lockhart, who stepped into the role only this January.

LendInvest passed a series of milestone in the last financial year including becoming the first UK fintech to securitise its own assets in a £259m transaction last summer, and a second £285m securitisation just three months ago.

The business also secured a £200m credit line from National Australia Bank which it used for buy-to-let loans, and launched its first home owner product in the form of a regulated bridging loan.

While the results mostly cover a period pre-Covid-19, they note that the company has “reduced capital expenditure and taken prudent steps to reduce operating expenses to maximise working capital” as a result of recent developments.

Despite the uncertainty, as of the results being prepared for 31 March LendInvest said it has “continued to lend across all products since lockdown was enforced.”

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