LendInvest reported a 244 per cent year-on-year rise in core earnings in its latest half-year results, during what its chief executive described as a “uniquely challenging year”.
The specialist mortgage lender reported core earnings of £6.2m in the six months to 30 September 2020, while gross profits rose by 22 per cent to £17.6m.
Gross revenue rose by 11 per cent year-on-year to reach £56.4m, while almost £1.4bn was processed via gross loans and advances – a 27 per cent year-on-year increase.
“It’s been a uniquely challenging year, one which the industry could never have foreseen nor planned for,” said Rod Lockhart, chief executive of LendInvest.
“Despite the challenging macro-economic environment, we have continued to grow our loanbook, proven out our business model, solidified our balance sheet and substantially grown our profitability as we move into 2021.
“The performance of the business over this period is a testament to our ongoing investment in technology, and the operational infrastructure we have built; we delivered an online experience to our customers when they needed it the most.”
As at 30 September 2020, LendInvest had invested £112.5m in short-term loans to property business owners and professionals.
In the interim results report – published by its listed subsidiary LendInvest Secured Income – the lender warned that Covid-19 and the associated government restrictions remain a risk for wider economic activity.
“Whilst the directors do not currently consider Brexit to be a principal risk for the group, they note the group is focused predominantly on lending against property assets in the UK,” LendInvest said.
“A general and persistent weakening of the UK economy and a fall in market sentiment caused by the uncertainty that Brexit or Covid-19 may pose, has the potential to impact the performance of the group’s underlying asset recovery.”
Earlier this month, LendInvest announced the passing of its chief financial officer Angelie Panteli.
“The company is deeply saddened to announce that Angelie Panteli, chief financial officer, company secretary and hugely respected colleague, passed away on 30 November 2020,” the report added.
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