Lendinvest PLC
15 July 2026
LendInvest plc
Audited results for the year ended 31 March 2026
(Analysts and investors presentation: 10.00am today, July 15th 2026, To access the webcast, please register here)
LendInvest FY26: Operating leverage delivering profitable growth
LendInvest plc (AIM: 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.
Financial highlights
• Net operating income increased 12% to £43.2m (FY25: £38.6m), of which:
- Principal investments - net interest income of £19.7m, up 26% (FY25: £15.7m)
- Third-party assets - net fee income of £23.7m, up 8% (FY25: £22.0m)
- Net gains on sale of loans to third parties of £1.4m
• Administrative expenses decreased 1% to £36m; underlying administrative expenses decreased 5% to £33.3m, despite materially higher Assets under Management (AUM) and lending volumes
• Underlying PBT £4.0m (FY25: Loss of £1.3m); Profit before taxation of £3.2m (FY25: loss of £1.2m); Profit after tax £2.3m
• Adjusted EBITDA increased 200% to £8.7m (FY25: £2.8m)
• Diluted earnings per share of 1.6p (FY25: loss of 1.2p)
Operational highlights
• Record originations of £1.44bn (+17%); record quarterly originations of £415m in Q4; record monthly originations of £196m in March
• Buy-to-Let originations of £917m; Short-Term Mortgages record offers of £113m in Q4
• Gross principal investment loans increased 38% to £943.2m (FY25: £683.9m)
• Assets under management increased 18% to £3.82bn (FY25: £3.23bn), of which 75% third-party AUM; Funds under Management (FUM) increased to £5.48bn (FY25: £5.13bn)
• Further funds available to lend of £1.66bn
• Group entered FY27 with its largest lending pipeline to date
• Headcount reduced to 192 (FY25: 203); 51% of office-based staff now in Glasgow (FY25: 35%)
Credit quality and funding
• Impaired balances (Stage 3) reduced 30% to £63.1m (FY25: £89.8m)
• Cost of risk of 0.48% of principal investment loans, with the £4.0m impairment charge concentrated (£3.4m) in the legacy Capital portfolio which reduced in size by 20% over the period and £0.6m in the Mortgages portfolio
• Seventh consecutive RMBS securitisation, comprising £310.6m of UK prime Buy-to-Let and owner-occupied mortgage loans; fifth listed bond issued in FY26
|
Summary financials |
Year ended 31 March 2026 |
Year ended 31 March 2025 |
|
|
|
£m |
£m (restated) |
Change |
|
Funds under management (FUM) |
5,478.7 |
5,128.6 |
7% |
|
Platform assets under management (AUM) |
3,815.6 |
3,232.8 |
18% |
|
Proportion of AUM on third-party funds |
75% |
79% |
(5%) |
|
New lending |
1,437.2 |
1,231.1 |
17% |
|
Proportion of new lending for third-party funds |
60% |
56% |
7% |
|
Interest bearing liabilities |
982.1 |
725.0 |
35% |
|
Total liabilities |
1,011.0 |
753.2 |
34% |
|
Total assets |
1,083.5 |
819.5 |
32% |
|
Net assets |
72.5 |
66.3 |
9% |
|
Net interest income |
19.7 |
15.7 |
26% |
|
Net fee income |
23.7 |
22.0 |
8% |
|
Net operating income |
43.2 |
38.6 |
12% |
|
Impairment losses on financial assets |
4.0 |
3.5 |
(16%) |
|
Administrative expenses |
36.0 |
36.3 |
1% |
|
Total operating expenses |
40.0 |
39.8 |
(1%) |
|
Profit/(loss) before taxation |
3.2 |
(1.2) |
n/m |
|
Underlying profit/(loss) before taxation |
4.0 |
(1.3) |
n/m |
|
Profit/(loss) after taxation |
2.3 |
(1.6) |
n/m |
|
Adjusted EBITDA |
8.7 |
2.8 |
200% |
|
Diluted earnings/(loss) per share |
1.6p |
(1.2p) |
n/m |
1.AUM is gross loans and advances to customers and funding partners at the end of the period
2.Comparisons where the percentage change is >200% or <(200%) are deemed not meaningful (n/m)
Chair's statement
Stephan Wilcke
In FY25 we set out to simplify the business, reduce costs and build the foundations for scalable, profitable growth. FY26 is the year those foundations have started to deliver. Record lending of £1.44bn, a return to full-year profitability and clear evidence of operating leverage - revenues growing, costs reducing - demonstrate that the operating model is now working as intended.
The Group generated a profit before taxation of £3.2m for the year, a £4.4m improvement on FY25. The Group originated a record £1.44bn of loans during the year, with particularly strong momentum through the second half and into Q4. Assets under management increased 18% to £3.82bn and funds under management increased 7% to £5.48bn. The business enters FY27 with its largest pipeline to date, providing strong forward visibility.
Recent events across the alternative lending market have reinforced the importance of governance, transparency and institutional discipline. LendInvest continues to maintain strong oversight, controls and reporting standards across the Group. During FY26, the Group completed additional third-party portfolio verification exercises as part of ongoing institutional oversight processes, reinforcing the confidence our long-standing funding partners place in the quality and integrity of our portfolio. We believe the rigour we apply - to our portfolio, to our funding relationships, to our people and to our conduct - is both the right way to run a business and an increasingly important source of competitive differentiation. Institutions want to back platforms they can trust, and we are committed to being one of them.
The UK property finance market continues to offer compelling long-term fundamentals. Structural undersupply sustained rental demand, and a growing cohort of professional portfolio property investors create enduring opportunities for well-capitalised, well-governed lenders. LendInvest exists to serve that market - connecting underserved property investors with institutional capital, and doing so with the rigour, transparency and discipline that makes the proposition sustainable for all parties. When that is done well, it creates genuine value: for borrowers who access reliable, competitively priced finance; for institutional partners who gain exposure to high-quality, well-managed assets; and for shareholders who benefit from a scalable, capital-efficient platform with a growing earnings trajectory. That is the business we are building. That is what FY26 demonstrates we are capable of delivering.
The Board remains confident in the Group's strategy, operating model and the long-term opportunity in UK property finance. The business is demonstrably past the inflection point: lending is scaling, costs are well controlled, and profitability is growing. We enter FY27 with strong momentum, significant funding capacity and a clear trajectory of continued earnings progression.
Chief Executive Officer's statement
Rod Lockhart
Delivering profitable and scalable growth
FY26 marks the point at which LendInvest's strategic transformation becomes business as usual. The work of the preceding year - simplifying the business, building the capital-light platform and embedding operational efficiency - is now reflected clearly in our financial results. Lending is growing at record levels, costs are flat, and profitability is increasing. The compounding mechanics of the model are now clearly visible, and the profitability jaws are widening.
Underlying profit before taxation improved to £4.0m, a year-on-year improvement of £5.3m (FY25: loss of £1.3m). Adjusted EBITDA increased 200% to £8.7m (£2.8m in FY25), while profit after taxation was £2.3m, representing a swing of £3.9m year-on-year.
Diluted earnings per share were 1.6p. Net operating income grew 12% to £43.2m, while reported administrative expenses decreased 1% at £36m despite record lending volumes and continued platform growth. On an underlying basis, administrative expenses decreased 5% year-on-year to £33.3m, demonstrating clear operating leverage as the business continues to scale.
Record lending momentum
The Group originated a record £1.44bn of loans during FY26, a 17% increase on FY25, with momentum building consistently through the year. Q4 delivered record quarterly originations of £415m, including a record monthly figure of £196m in March. Buy-to-Let originations reached £917m, with March representing the highest monthly BTL lending on record. Short-Term Mortgages delivered record offers of £113m in Q4.
Assets under management increased 18% to £3.82bn from £3.23bn, while funds under management increased to £5.48bn from £5.13bn, reflecting continued growth across both principal and third-party lending. The Group enters FY27 with its largest lending pipeline to date.
Operating leverage
Our income is generated across two earnings engines: principal investments, which earn net interest income on the lending we retain; and third-party assets, on which we earn recurring fee income for originating and managing loans on behalf of institutional partners.
Net interest income grew 26% to £19.7m (FY25: £15.7m), reflecting the growth in our principal lending and improved net interest margins (NIM) in the Mortgage portfolios. Net fee income increased 8% to £23.7m (FY25: £22.0m), supported by continued growth in fee income on loans originated and managed for third parties, which increased to £20.6m from £16.4m in FY25. Together, these drove a 12% increase in net operating income to £43.2m.
The Mortgages segment continued to perform strongly, with net operating income growing 40% to £34.5m (FY25: £24.7m). BTL retention remained strong at 56%, improving significantly from 35% in FY25, supporting both income quality and customer lifetime value.
Administrative expenses across the Group decreased by 1% to £36.0m (FY25: £36.3m), despite significantly higher lending volumes and increased AuM. Excluding variable and non-core items, underlying administrative expenses decreased by 5% to £33.3m (FY25: £35.2m). Central costs reduced to £21.3m from £22.8m in FY25, reflecting the continued simplification of the organisational structure. Headcount reduced 5% to 192 from 203, with capacity maintained through platform efficiency and workflow automation.
Simplification and operational discipline
Alongside continued growth, the Group has remained focused on simplifying the business and concentrating resources behind its core scalable lending activities. In FY27, the Group continued the reduction in group subsidiaries, and further streamlining of operational complexity. Post period, in FY27, the Group also took the decision to close the Self-Select platform and commence an orderly rundown of retail investor balances. These steps improve the simplicity of our operating model, reduce overhead drag, and strengthen the predictability and quality of our earnings.
Technology investment during the year remained focused on improving operational scalability and efficiency across the lending lifecycle. During FY26, the Group took the strategic decision to transition to a more AI-enabled loan servicing model, with the Prism platform selected to support that transition - enabling more efficient management of the loan portfolio via greater automation. Implementation begins in FY27. Capitalised development costs of £1.9m (FY25: £2.0m) reflect continued, modest, targeted investment in our proprietary platform.
Credit quality
Impaired balances (Stage 3) reduced 30% to £63.1m from £89.8m in FY25. Cost of risk remained low at 0.48% of average principal investment loans. The £4.0m impairment charge is concentrated (£3.4m) in the legacy Capital portfolio, which is being run down, with the Mortgages portfolio, the large majority of new principal lending, contributing just £0.6m, reflecting rigorous underwriting and a portfolio concentrated in professionally managed, income-generating property. Of gross loans and advances at 31 March 2026, 76% were in Stage 1.
Funding and capital
Cash and cash equivalents increased to £78.3m (FY25: £55.7m), with cash of £14.2m (FY25: £12m) after excluding restricted cash; this reflects strong operating cash generation.
Third-party funding.
The Group maintained a strong funding position throughout FY26, supported by a diversified funding model and long-standing institutional relationships with a number of funding partners. We continued to expand these relationships and maintained strong support from our existing separately managed account partners. Our separately managed accounts, anchored by J.P. Morgan and now supported by partners including Castlelake and AB CarVal, now form a substantial part of our available funding, with third-party funding having grown approximately 60% over the past two years to £3.4bn.
Principal-investment funding.
During the year the Group issued its fifth retail-eligible listed bond ('LIV5'), issuing £75m with £6.85m retained in treasury of which £3.5m has now been sold to support future debt requirements at an 8.25% coupon maturing in 2030; over 70% of the bonds maturing in October 2026 elected to exchange into the new issue, materially de-risking that refinancing. Post year end, in June 2026, the Group also issued a sixth retail-eligible listed bond (LIV6) at 8% running to 2032, issuing £75m with £50m retained in treasury and £25m allocated.
In FY26, the Group completed its seventh consecutive annual RMBS securitisation under the Mortimer programme, 'Mortimer 2025-1', comprising £310.6m of UK prime Buy-to-Let and owner-occupied mortgage loans - its best-priced securitisation since 2021 - further demonstrating the depth of institutional demand for LendInvest-originated assets.
Recent events across the alternative lending market have reinforced the importance of governance, transparency and operational controls. LendInvest's long-standing institutional relationships, prudent underwriting approach and the independent double-pledging review completed by our largest funder - which verified that every loan is uniquely allocated - position the business strongly within an increasingly selective funding environment.
Outlook
The Group enters FY27 with strong committed funding capacity, its largest lending pipeline to date, and a highly scalable operating model.
Global events, and most recently the war in Iran, have driven an unexpected rise in swap rates since February 2026, and have halted the anticipated path of Bank of England interest rate cuts, increasing funding and lending costs across the market. While the duration of this impact remains uncertain and may moderate lending activity in the near term, the underlying fundamentals of our market remain attractive. Demand across our core products is resilient, professional landlord and specialist mortgage activity continues to provide significant growth opportunities, and our platform is well positioned to continue capturing and retaining that business at scale.
Post period end, we have delivered another quarter (Q1 2027) record for originations. We anticipate a drop in lending in Q2 2027 from the record high in Q1 as a result of higher interest rate swaps post the start of the Iran war. We are confident of delivery on growth ambitions and expect to be in line with analyst consensus for FY27.
Our focus remains on disciplined growth, continued operational efficiency and the further compounding of profitability, as we continue to execute against our medium-term ambition, first set out in FY25, to double lending.
Rod Lockhart
Chief Executive Officer
Analysts and investors presentation: 10.00am on July 15th 2026
A webcast for analysts and investors will be hosted by Rod Lockhart, Chief Executive Officer; Stephen Shipley, Chief Financial Officer; and Daniel O'Connor, Chief Operating Officer at 10.00am today, Wednesday July 15th 2026.
A playback facility will also be available in due course.
To access the webcast, please register here
Enquiries
LendInvest
Rod Lockhart, Chief Executive Officer
Stephen Shipley, Chief Financial Officer
Chris Semple, Head of Corporate Communications & Investor Relations
press@lendinvest.com | investorrelations@lendinvest.com
Panmure Liberum (NOMAD and Broker)
Atholl Tweedie / David Watkins
+44 (0)20 7886 2500
KK Advisory
Kam Bansil / Steve Keeling
+44 (0)20 7039 1901
Market backdrop
Foundations hold: governance, depth and performance in a year that tested the market
FY26 was a year of continued progress and recalibration. The normalisation of the UK property finance market advanced, but on a slower and more uneven path than originally forecast. More recently, the interest-rate easing many had expected to define 2026 stalled as inflation risks re-emerged following geopolitical disruption to global energy markets.
Interest rate swaps were volatile through the period, increasing funding costs across the market, while the Bank of England adopted a more cautious policy stance. Against that backdrop both borrowers and lenders adapted, and the capital-raising environment became more discerning - a trend that has continued into FY27, with institutional capital increasingly concentrating around established platforms able to demonstrate governance, transparency and credit discipline.
Borrower activity and housing fundamentals
Borrower activity strengthened through the second half of FY26, as improving sentiment following the Autumn Budget gave professional landlords and property investors greater clarity and confidence to act. That activity was purposeful and concentrated in segments where the economics remained demonstrably robust - Buy-to-Let portfolio management, refinancing of performing assets, and professionally managed residential investment - segments in which LendInvest has deep experience and strong broker relationships. Pipeline conversion reflected it: £917m of Buy-to-Let originations in FY26, including a record month of lending in March.
Refinancing pressure across the market continued to build, as a substantial volume of loans originated in a lower-rate environment moved towards maturity and many borrowers sought a clear, considered path forward. LendInvest responded proactively, introducing and significantly expanding its product transfer and product transition capabilities to give existing borrowers continuity, certainty and competitive terms.
Institutional funding markets and the flight to quality
The most significant structural shift in the funding market during FY26 was the acceleration of a trend already underway: the concentration of institutional capital around lending platforms that can demonstrate governance, transparency and verified credit quality. LendInvest's long-standing relationships with bank lenders, investor partners and RMBS investors remained strong throughout the year, supported by the quality of the portfolio, the completion of an independent loan-level collateral verification and anti-double-pledging audit by the Group's largest funder, and a continued commitment to transparency and operational discipline.
That confidence was evident in execution. The Group's fifth listed bond issuance, completed during the year, was further evidence of sustained investor support. In the securitisation market, Mortimer 2025-1 - the Group's seventh RMBS - closed oversubscribed, with the AAA-rated senior note priced at 81 basis points over SONIA. With AAA BTL spreads tightening from around 95 basis points in April to the mid-80s by March, the ability to execute inside that range is a measure of where the platform now sits in the market. In an environment of intensified institutional scrutiny, the governance disciplines and independent verification LendInvest has consistently maintained are increasingly valued by the RMBS market.
Operational review
Our business model
LendInvest originates, underwrites, services and manages alternative property mortgages and loans across Buy-to-Let, Residential, Short-Term and Development and Structured Finance. Our proprietary platform supports each stage of the loan lifecycle, enabling consistent credit decisions, efficient processing and disciplined control over portfolio outcomes.
How we generate income
Our income is generated across both the third-party assets we manage and the principal investments we retain.
Third-party investments fee yields
Third-party assets are funded by institutional investors and managed by the Group, generating recurring, capital-light fee income through management and servicing fees, and origination and structuring fees. At FY26 year-end the Group managed £2.86bn of third-party assets, 75% of total assets under management.
|
|
Mortgages |
Mortgages |
Capital |
Group |
|
|
Long-term |
Short-term |
|
|
|
Year ended 31 March 2026 |
% |
% |
% |
% |
|
Loan servicing fees on asset management / Third-party avg. AUM |
0.21% |
0.25% |
0.36% |
0.23% |
|
NFI on third-party originations incl. gain on sales / Third-party originations |
1.71% |
1.69% |
1.28% |
1.64% |
Principal investments fee yields & margins
Principal investments are funded directly by the Group, earning net interest income, fees and realisations on the lending we retain. At FY26 year-end the Group held £943.2m of principal investments.
|
|
Mortgages |
Mortgages |
Capital |
Group |
|
|
Long-term |
Short-term |
|
|
|
Year ended 31 March 2026 |
% |
% |
% |
% |
|
Net interest margin (NIM) |
1.12% |
5.05% |
3.78% |
2.24% |
|
Impairment losses / Principal avg. AUM |
(0.11%) |
0.04% |
(3.13%) |
(0.48%) |
|
NFI on loans and advances / Principal avg. AUM |
N/A |
0.43% |
1.43% |
0.28% |
1.For detailed product views including AUM and originations by product see business performance
2.Net interest margin excludes gain on derivative financial instruments and hedge accounting
The combination of third-party assets and principal investments creates a capital-efficient revenue model. Third-party assets generate fee income with limited capital requirement, while principal investments generate recurring net interest income. As both activities grow, revenue increases across multiple income streams while the fixed cost base stays broadly stable.
The £8.9m net fee income on asset management (FY25: £10.3m) reflects the orderly rundown of the legacy Self-Select platform and Funds, rather than any weakening of the underlying fee income, where fee income on origination of loans to third parties grew 31% to £12.5m.
Scalability
The platform is built to grow lending and assets under management without a proportionate rise in fixed cost: automation and data-led, AI-supported underwriting mean volumes can increase while headcount stays broadly stable. In FY26 that operating leverage showed through clearly: record lending of £1.44bn (+17%) and an 18% increase in assets under management to £3.82bn were delivered while underlying administrative expenses fell 5% to £33.3m and headcount reduced to 192 (FY25: 203). Net operating income grew 12% against an essentially flat cost base, and the Group delivered two consecutive profitable half-years.
LendInvest's BTL lending grew 17% during the year, ahead of the wider alternative lending market at 13%, according to UK Finance Data
Risk and capital discipline
Credit risk is managed through real-time portfolio monitoring, early-warning analytics and careful control of Principal investments exposure. Distribution of credit risk through institutional partnerships and securitisation further reduces concentration. This allows the Group to grow lending while maintaining capital efficiency and supporting sustainable returns through the cycle.
Summary
FY26 demonstrates that LendInvest's strategic transformation is delivering tangible results. The Group has returned to profitability, achieved record lending volumes, expanded both third-party assets managed and principal investments, maintained strong credit quality and strengthened its funding position.
With significant available funding capacity, a scalable technology platform and its largest lending pipeline to date, the Group enters FY27 well positioned to continue growing earnings and shareholder value.
Business performance
Lending: record volumes, embedded discipline
The platform showed it can scale with efficiency and strong operating leverage.
Total lending reached a record £1.44bn, with momentum building consistently through the year and accelerating sharply into Q4 delivering record quarterly originations of £415m and a record monthly figure of £196m in March.
This was not a market-driven windfall. It reflects a business with the broker relationships, product capability and operational infrastructure to originate at volume without compromising on discipline.
|
Mortgages: long-term lending |
Year ended 31 March 2026 |
Year ended 31 March 2025 |
|
|
|
£m |
£m |
Change |
|
Principal investments avg. AUM |
548.4 |
284.9 |
92% |
|
Principal investments originations |
303.2 |
251.6 |
21% |
|
Third-party investments avg. AUM |
2,258.3 |
2,022.5 |
12% |
|
Third-party originations |
637.4 |
570.1 |
12% |
|
Net fee income on asset management |
4.8 |
4.4 |
11% |
|
Net fee income on origination of loans to third parties |
10.9 |
8.5 |
27% |
|
Net fee Income (NFI) |
15.7 |
12.9 |
22% |
|
Net interest income |
6.1 |
2.9 |
111% |
|
NFI on asset management / Third-party avg. AUM |
0.21% |
0.22% |
(1%) |
|
Loan servicing fees on asset management / Third-party avg. AUM |
0.21% |
0.20% |
5% |
|
NFI on third-party originations incl. gain on sales / Third-party originations |
1.71% |
1.50% |
14% |
|
Net interest income / Principal investments avg. AUM (NIM) |
1.12% |
1.02% |
10% |
|
Impairment losses / Principal investments avg. AUM |
(0.11%) |
(0.26%) |
57% |
1.Net interest margin excludes gain on derivative financial instruments and hedge accounting
2.AUM is gross annual average AUM for the period
Buy-to-Let was the primary growth engine. Originations reached £917m, with March representing the highest monthly BTL lending on record. Activity was concentrated among professional landlords and portfolio investors - the segment where we are seeing the greatest market opportunity as the BTL market consolidates into fewer bigger landlords.
The significant improvement in BTL retention to 56% (from 35% in FY25) was a direct consequence of deliberate platform investment: product transfer capability is now embedded in the broker portal, with a streamlined legal process supported by digital valuations and automated workflows designed to remove the friction that traditionally made renewals a bottleneck for brokers and borrowers alike. Retention is not just a customer satisfaction metric - it is an increasingly important driver of income quality and acquisition cost efficiency as the volume of fixed-rate maturities in our portfolio continues to build.
|
Mortgages: Short-term lending |
Year ended 31 March 2026 |
Year ended 31 March 2025 |
|
|
|
£m |
£m |
Change |
|
Principal investments avg. AUM |
169.7 |
137.1 |
24% |
|
Principal investments originations |
249.7 |
159.5 |
57% |
|
Third-party investments avg. AUM |
54.9 |
61.3 |
(10%) |
|
Third-party originations |
72.2 |
75.9 |
(5%) |
|
Net fee income on loans and advances |
0.7 |
0.8 |
(10%) |
|
Net fee income on asset management |
1.0 |
1.1 |
(12%) |
|
Net fee income on origination of loans to third parties |
0.8 |
0.6 |
44% |
|
Net fee Income (NFI) |
2.5 |
2.5 |
1% |
|
Net gains on sale of loans and loan portfolios |
0.4 |
0.2 |
82% |
|
Net fee Income incl. gain on sale of loans and loan portfolio |
2.9 |
2.7 |
7% |
|
Net interest income |
8.6 |
6.0 |
43% |
|
NFI on loans and advances / Principal investments avg. AUM |
0.43% |
0.59% |
(28%) |
|
NFI on asset management / Third-party avg. AUM |
1.82% |
1.86% |
(2%) |
|
Loan servicing fees on asset management / Third-party avg. AUM |
0.25% |
0.19% |
28% |
|
NFI on third-party originations incl. gain on sales / Third-party originations |
1.69% |
1.04% |
62% |
|
Net interest income / Principal investments avg. AUM (NIM) |
5.05% |
4.36% |
16% |
|
Impairment losses / Principal investments avg. AUM |
0.04% |
0.30% |
(87%) |
1.Net interest margin excludes gain on derivative financial instruments and hedge accounting
2.AUM is gross annual average AUM for the period
Short-term mortgages delivered a record Q4, with offers reaching £113m. The maturation of this product as a mainstream financing solution, used increasingly for refurbishment financing and development exits alongside traditional bridge scenarios - plays directly to LendInvest's strengths. Speed, underwriting rigour and certainty of funding are the differentiators in this segment, and demand for all three intensified as market conditions became more selective.
|
Capital |
Year ended 31 March 2026 |
Year ended 31 March 2025 |
|
|
|
£m |
£m |
Change |
|
Principal investments avg. AUM |
109.1 |
136.7 |
(20%) |
|
Principal investments originations |
33.8 |
88.0 |
(62%) |
|
Third-party investments avg. AUM |
319.9 |
327.7 |
(2%) |
|
Third-party originations |
141.1 |
86.0 |
64% |
|
Net fee income on loans and advances |
1.6 |
1.4 |
12% |
|
Net fee income on asset management |
3.1 |
4.8 |
(37%) |
|
Net fee income on origination of loans to third parties |
0.8 |
0.4 |
100% |
|
Net fee Income (NFI) |
5.5 |
6.6 |
(18%) |
|
Net gains on sale of loans and loan portfolios |
1.0 |
0.6 |
65% |
|
Net fee Income incl. gain on sale of loans and loan portfolio |
6.5 |
7.2 |
(11%) |
|
Net interest income |
4.1 |
6.4 |
(36%) |
|
NFI on loans and advances / Principal investments avg. AUM |
1.43% |
1.02% |
41% |
|
NFI on asset management / Third-party avg. AUM |
0.95% |
1.47% |
(35%) |
|
Loan servicing fees on asset management / Third-party avg. AUM |
0.36% |
0.49% |
(26%) |
|
NFI on third-party originations incl. gain on sales / Third-party originations |
1.28% |
1.17% |
9% |
|
Net interest income / Principal investments avg. AUM (NIM) |
3.78% |
4.71% |
(20%) |
|
Impairment losses / Principal investments avg. AUM |
(3.13%) |
(2.26%) |
(38%) |
1.Net interest margin excludes gain on derivative financial instruments and hedge accounting
2.AUM is gross annual average AUM for the period
Within the Capital division, performance reflected the inherently cyclical nature of development finance and larger structured lending. Loan balances reduced as developers remained cautious in the face of persistent macroeconomic uncertainty - higher-for-longer rates, elevated construction costs and subdued planning activity continued to constrain project starts across the SME housebuilding sector. The Capital division remained profitable, contributing £1.4m profit before taxation, and the Group managed the portfolio with appropriate discipline given market conditions. Consistent with this, the Capital division's principal investments are treated as a legacy portfolio in orderly rundown, with capital recycled into higher-return lending as positions amortise. New lending from the Capital division is focussed on third-party investments with 45% (£15.1m) of the new principal investment originations sold to third parties by 31 March 2026.
Looking ahead, a material near-term recovery in development finance volumes is not assumed. However, critically, the Group enters FY27 better funded than it has been - fundraising from third-party investors completed towards the end of FY26 has put the necessary capital infrastructure in place. When developers are ready to move, LendInvest is positioned to support them.
Post year end, this has included the decision to close the Self-Select platform to new investments and commence an orderly rundown of retail investor balances. This further simplifies the Group's operating and regulatory footprint, consistent with the long-term strategic shift towards deep institutional capital.
Credit quality
The Group maintained strong underwriting discipline throughout the year, and the quality of the portfolio improved materially. Impaired balances (Stage 3) reduced to £63.1m from £89.8m in FY25 - a 30% reduction - reflecting the continued resolution of legacy exposures in the Capital division rather than any deterioration in the current origination portfolio. Of the £943.2m gross loans and advances at 31 March 2026, 76% were Stage 1, with an average LTV on Stage 1 loans of 71%.
The £4.0m impairment charge is concentrated in the legacy Capital portfolio (£3.4m), which is being run down and reduced by 20% over the period from £137.5m to £93m; the Mortgages division contributed just £0.6m, continuing to demonstrate strong underlying credit performance underpinned by rigorous underwriting and a portfolio concentrated in professionally managed, income-generating property. Cost of risk was 0.48% of all principal investment loans.
The independent loan-level collateral verification and anti-double-pledging audit completed by the Group's largest funder during FY26 - which confirmed every loan is uniquely allocated - is a further external validation of the quality and integrity of the portfolio. In a market where institutional scrutiny has intensified, that verification matters.
|
|
Mortgages |
Mortgages |
Capital |
Group |
|
|
Long-term |
Short-term |
|
|
|
Year ended 31 March 2026 |
£m |
£m |
£m |
£m |
|
Stage 1 Gross AUM |
581.7 |
135.7 |
3.7 |
721.1 |
|
Stage 2 Gross AUM |
76.3 |
39.7 |
43.0 |
159.0 |
|
Stage 3 Gross AUM |
3.4 |
14.6 |
45.1 |
63.1 |
|
Principal Investments AUM |
661.4 |
190.0 |
91.8 |
943.2 |
|
Impairment losses on financial assets |
(0.7) |
0.1 |
(3.4) |
(4.0) |
1.AUM is gross loans and advances to customers and funding partners at the end of the period
Financial statements
The summary consolidated income statement for the year ended 31 March 2026 is shown below.
|
Consolidated income statement |
Year ended 31 March 2026 |
Year ended 31 March 2025 |
|
|
|
£m |
£m |
Change |
|
Net interest income |
19.7 |
15.7 |
26% |
|
Net fee income |
23.7 |
22.0 |
8% |
|
Net gains on sale of loans and loan portfolios |
1.4 |
0.8 |
69% |
|
Net losses on derecognition of financial liabilities |
(1.6) |
- |
- |
|
Net other operating income |
- |
0.1 |
- |
|
Net operating income |
43.2 |
38.6 |
12% |
|
Administrative expenses |
(36.0) |
(36.3) |
1% |
|
Impairment losses on financial assets |
(4.0) |
(3.5) |
(16%) |
|
Total operating expenses |
(40.0) |
(39.8) |
(1%) |
|
Profit/(loss) before taxation |
3.2 |
(1.2) |
n/m |
|
Gain on derivative financial instruments and hedge accounting |
(1.1) |
(0.5) |
(159%) |
|
Net losses on derecognition of financial liabilities |
1.6 |
- |
- |
|
Exclude exceptional operating expenses |
0.3 |
0.4 |
(20%) |
|
Underlying profit/(loss) before tax |
4.0 |
(1.3) |
n/m |
|
Profit/(loss) after taxation |
2.3 |
(1.6) |
n/m |
|
Adjusted EBITDA |
8.7 |
2.8 |
200% |
1.Comparisons where the percentage change is >200% or <(200%) are deemed not meaningful (n/m)
|
Net operating income |
Year ended 31 March 2026 |
Year ended 31 March 2025 |
|
|
|
£m |
£m |
Change |
|
Net interest income |
19.7 |
15.7 |
26% |
|
Net fee income |
23.7 |
22.0 |
8% |
|
Net gains on sale of loans and loan portfolios |
1.4 |
0.8 |
69% |
|
Net losses on derecognition of financial liabilities |
(1.6) |
- |
- |
|
Net other operating income |
- |
0.1 |
- |
|
Net operating income (NOI) |
43.2 |
38.6 |
12% |
|
Exclude Net losses on derecognition of financial liabilities |
1.6 |
- |
- |
|
Underlying net operating income |
44.8 |
38.6 |
16% |
Our income is generated across both the third-party assets we originate and manage and the principal investments we originate and retain. Net operating income increased by 12% to £43.2m for the year ended 31 March 2026 (FY25: £38.6m), driven by growth in both net interest income and net fee income.
Included in net operating income is net losses on derecognition of financial liabilities and a one-off £1.6m bond exchange premium. Rather than an operational drag, this premium represents a highly accretive, proactive liability management exercise that allowed us to successfully extend £75m of our bond debt funding at reduced fixed rates for a further four years. Adjusting for this strategic one-off item, underlying net operating income grew 16% to £44.8m (FY25: £38.6m).
|
Net interest income |
Year ended 31 March 2026 |
Year ended 31 March 2025 |
|
|
|
£m |
£m |
Change |
|
Principal investments avg. AUM |
827.2 |
558.7 |
48% |
|
Net interest income |
19.7 |
15.7 |
26% |
|
Net interest income / Principal investments avg. AUM (NIM) |
2.38% |
2.81% |
(15%) |
1.AUM is gross annual average AUM for the period
Sustained top-line delivery
Net interest income (NII) grew 26% to £19.7m for the full year ended 31 March 2026 (FY25: £15.7m), serving as the core engine for the Group's return to full year profitability. This step-change in revenue generation was anchored by a 48% year-on-year expansion in average Principal investments AuM, demonstrating our ability to consistently deploy capital into high-demand segments.
Deliberate mix shift and margin resilience
While the overall net interest margin (NIM) moderated to 2.38% (FY25: 2.81%), this was a deliberate byproduct of our year-long transition toward a higher-quality, lower-risk portfolio mix. Crucially, underlying unit economics remain highly robust; when viewed in isolation, margins across both our core Buy-to-Let (BTL) and Short-Term Mortgages (STM) portfolios strengthened as the year progressed.
Structural balance sheet evolution
FY26 marked a shift in our balance sheet architecture. We ended the year with 25% of Platform AuM selectively held on the balance sheet (FY25: 21%), allowing us to maximise execution certainty and enhance earnings capture. More importantly, we achieved a year-end exit rate of 57% of assets funded via securitisation (up from 41% at the close of FY25).
This structural transition was cemented by the successful £310.6m Mortimer 25 transaction in October 2025. Executed at the midpoint of the financial year, it accelerated our ability to recycle capital, structurally insulate our liquidity profile, and materially de-risk our credit exposure through the second half.
Foundation for capital-efficient growth
Although these securitised assets remain on the balance sheet under IFRS, they demand materially less capital than directly funded loans. The full-year results validate this strategic trajectory: we have successfully replaced capital-intensive legacy models with scalable, third-party funding solutions. The Group enters FY27 with a highly defensive, capital-efficient platform designed to deliver repeatable, through-the-cycle earnings.
|
Net fee income including Net gains on sale of loans and loan portfolios Net losses on derecognition of financial liabilities |
Year ended 31 March 2026 |
Year ended 31 March 2025 |
|
|
|
£m |
£m |
Change |
|
Principal investments avg. AUM |
827.2 |
558.7 |
48% |
|
Principal investments originations |
586.7 |
499.1 |
18% |
|
Third-party investments avg. AUM |
2,633.1 |
2,411.5 |
9% |
|
Third-party originations |
850.7 |
732.0 |
16% |
|
Net fee income on loans and advances |
2.3 |
2.2 |
4% |
|
Net fee income on asset management |
8.9 |
10.3 |
(14%) |
|
Net fee income on origination of loans to third parties |
12.5 |
9.5 |
31% |
|
Net fee Income (NFI) |
23.7 |
22.0 |
8% |
|
Net gains on sale of loans and loan portfolios |
1.4 |
0.8 |
69% |
|
Net fee Income incl. gain on sale of loans and loan portfolio |
25.1 |
22.8 |
10% |
|
|
|
|
|
|
NFI on loans and advances / Principal avg. AUM |
0.28% |
0.39% |
(30%) |
|
NFI on asset management / Third-party avg. AUM |
0.34% |
0.43% |
(21%) |
|
Loan servicing fees on asset management / Third-party avg. AUM |
0.23% |
0.24% |
(4%) |
|
NFI on third-party originations incl. gain on sales / Third-party originations |
1.64% |
1.41% |
16% |
1. AUM is gross loans and advances to customers and funding partners at the end of the period
Strong core growth driven by third-party originations
Core net fee income increased 8% to £23.7m for the year ended 31 March 2026 (FY25: £22.0m). This growth was driven by a 31% increase in net fee income on the origination of loans to third parties, which reached £12.5m (FY25: £9.5m) in line with underlying volume growth. This strong performance underscores the continued momentum in our strategic transition toward a capital-light revenue mix, bolstered by the introduction of new separate accounts that have successfully unlocked additional product lines capable of driving third-party income.
Asset management performance
The strong growth in third-party origination successfully offset a 14% decline in net fee income on asset management, which fell to £8.9m (FY25: £10.3m). This decrease reflects the reduction in the size of our Self-Select platform and Funds' portfolios during the period.
Foundation for long-term value
Our strategic emphasis on capital-light, fee-based income is consistently bearing fruit. By generating structurally higher operating margins with lower balance sheet intensity and reduced earnings volatility, this revenue stream reinforces the sustainability and scalability of long-term shareholder value creation.
|
Impairment losses on financial assets |
Year ended 31 March 2026 |
Year ended 31 March 2025 |
|
|
|
£m |
£m |
Change |
|
Stage 1 gross AUM |
721.1 |
464.7 |
55% |
|
Stage 2 gross AUM |
159.0 |
129.4 |
23% |
|
Stage 3 gross AUM |
63.1 |
89.8 |
(30%) |
|
Principal Investments AUM |
943.2 |
683.9 |
38% |
|
Impairment losses on financial assets |
(4.0) |
(3.5) |
(16%) |
|
ECL total / Principal investments AUM |
1.90% |
1.79% |
(6%) |
|
Impairment losses / Principal investments avg. AUM |
0.48% |
0.61% |
22% |
Impairment losses were £4.0m (FY25: £3.5m). The charge is concentrated in the legacy Capital portfolio, which contributed £3.4m (85%) as positions are resolved and the portfolio is run down. The Mortgages portfolio, which represents the substantial majority of new principal lending, contributed just £0.6m, reflecting strong underlying credit performance, rigorous underwriting and a portfolio concentrated in professionally managed, income-generating property.
This concentration, rather than any deterioration in current origination, is also why impaired balances (Stage 3) reduced 30% to £63.1m (FY25: £89.8m) even as lending grew: the legacy exposures that drove historical losses continue to resolve, while the quality of newly originated lending remains high.
|
Administrative expenses |
Year ended 31 March 2026 |
Year ended 31 March 2025 |
|
|
|
£m |
£m |
Change |
|
Wages and salaries |
16.6 |
16.8 |
1% |
|
Depreciation and amortisation |
3.5 |
3.7 |
4% |
|
Depreciation of right-of-use asset |
0.6 |
0.8 |
30% |
|
Interest expense - lease liabilities |
0.3 |
0.3 |
- |
|
Fees payable to the auditors for the audit of the FS |
1.8 |
1.6 |
(13%) |
|
Fees payable to the auditors for the audit of the prior year FS |
0.3 |
0.4 |
25% |
|
Share-based payment charge/(credit) |
0.6 |
(0.4) |
n/m |
|
Other operating expenses |
12.3 |
13.1 |
6% |
|
Total administrative expenses |
36.0 |
36.3 |
1% |
|
Exclude company bonus |
(1.8) |
(1.1) |
(66%) |
|
Exclude share-based payment charge/(credit) |
(0.6) |
0.4 |
n/m |
|
Exclude exceptional operating costs |
(0.3) |
(0.4) |
20% |
|
Underlying administrative expenses |
33.3 |
35.2 |
5% |
|
|
|
|
|
|
Comprising |
|
|
|
|
Direct expenditure |
14.7 |
13.5 |
(8%) |
|
Support expenditure |
21.3 |
22.8 |
6% |
|
Total administrative expenses |
36.0 |
36.3 |
1% |
1.Comparisons where the percentage change is >200% or <(200%) are deemed not meaningful (n/m)
Total administrative expenses remained tightly controlled, decreasing 1% by £0.3m to £36.0m for the year ended 31 March 2026 (FY25: £36.3m).
Core run-rate efficiency
After normalising for variable and non-core items, specifically a swing in share-based payments (a £0.6m charge in FY26 versus a prior-year £0.4m credit), increased performance bonus accruals aligned with our return to profitability (£1.8m vs. £1.1m), and exceptional operating costs, underlying administrative expenses actually decreased by 5% to £33.3m (FY25: £35.2m).
This 5% reduction in the underlying expense base demonstrates that our core run-rate costs continue to trend downward. The savings were primarily realised through targeted reductions in wages and salaries, which fell 1% to £16.6m, and a 6% reduction in other operating expenses to £12.3m.
Demonstrating scalability
This result provides clear evidence of our ongoing, rigorous cost discipline and an increasingly efficient operating footprint. Crucially, we have successfully driven down our core cost base against a backdrop of 17% higher business volumes, scaling AuM, and intensified delivery activity, proving the strong operating leverage now inherent within the platform.
Key drivers of this decrease include:
Wages and salaries: underlying reductions and strategic resourcing
Wages and salaries decreased by 1% to £16.6m (FY25: £16.8m). This structural saving is the direct result of our targeted organisational redesign. Total average headcount is down 5% YoY and was strategically reduced as roles were rationalised and redeployed into higher-productivity areas. Additionally, our geographic operating-model transition continues to bed in successfully with our Glasgow hub now accounting for 51% of office-based staff (FY25: 35%) cementing a structurally lower-cost and highly scalable delivery platform.
Depreciation and amortisation: extracting platform leverage
Depreciation and amortisation decreased by 4% to £3.5m (FY25: £3.7m). This reduction reflects a natural shift in our capital expenditure cycle; as the business transitions away from an intensive build-out phase, we are successfully extracting greater operational leverage and scale from our existing technology and platform estate. Depreciation of right-of-use assets also saw a notable 30% reduction to £0.6m (FY25: £0.8m), further reflecting footprint efficiencies.
Audit fees: stabilising prior-year spillovers
Current-year audit fees increased by 13% to £1.8m (FY25: £1.6m), driven by sector inflation, heightened regulatory scrutiny, additional subsidiaries, and one-off costs related to securitisation complexities. Conversely, prior-year audit fees fell 25% to £0.3m (FY25: £0.4m).
Share-Based Payments (SBP): return to a normalised run-rate
The SBP expense moved to a charge of £0.6m (FY25: £0.4m credit). The prior period benefited significantly from one-off, favourable adjustments linked to leavers, true-ups, and timing effects across company share and option plans. The current period's £0.6m charge, therefore, represents a return to a normalised, ongoing run-rate for SBP expenses.
Other operating expenses: embedded cost control
Other operating expenses decreased by 6% to £12.3m (FY25: £13.1m). This net reduction demonstrates excellent ongoing cost control and rationalisation of third-party spend, successfully offsetting any volume-driven increases associated with the expansion of our serviced loan book and originations.
|
Adjusted EBITDA |
Year ended 31 March 2026 |
Year ended 31 March 2025 |
|
|
|
£m |
£m |
Change |
|
Profit/(loss) after taxation |
2.3 |
(1.6) |
n/m |
|
Gain on derivative financial instruments and hedge accounting |
(1.1) |
(0.5) |
(159%) |
|
Bond exchange premium |
1.6 |
- |
- |
|
Corporation tax |
0.9 |
0.4 |
103% |
|
Depreciation and amortisation |
3.5 |
3.7 |
(4%) |
|
Depreciation of right-of-use asset |
0.6 |
0.8 |
(30%) |
|
Share-based payment charge/(credit) |
0.6 |
(0.4) |
n/m |
|
EBITDA |
8.4 |
2.4 |
n/m |
|
Exclude exceptional operating expenses |
0.3 |
0.4 |
(20%) |
|
Adjusted EBITDA |
8.7 |
2.8 |
200% |
1.Comparisons where the percentage change is >200% or <(200%) are deemed not meaningful (n/m)
The reconciliation between profit/(loss) after taxation and adjusted EBITDA for the year ended 31 March 2026 is shown above.
|
Segmental analysis |
Mortgages |
Capital |
Central |
Group |
|
Year ended 31 March 2026 |
£m |
£m |
£m |
£m |
|
Principal Investments |
850.2 |
93.0 |
- |
943.2 |
|
Third-party funded |
2,474.9 |
397.5 |
- |
2,872.4 |
|
Total AUM |
3,325.1 |
490.5 |
- |
3,815.6 |
|
New lending |
1,262.4 |
174.8 |
- |
1,437.2 |
|
Net interest income |
15.8 |
4.2 |
(0.3) |
19.7 |
|
Net fee income |
18.3 |
5.4 |
- |
23.7 |
|
Net gains on derecognition of financial assets |
0.4 |
1.0 |
- |
1.4 |
|
Net losses on derecognition of financial liabilities |
- |
- |
(1.6) |
(1.6) |
|
Net other operating income |
- |
- |
- |
- |
|
Net operating income |
34.5 |
10.6 |
(1.9) |
43.2 |
|
Administrative expenses |
(29.5) |
(5.8) |
(0.7) |
(36.0) |
|
Impairment losses on financial assets |
(0.6) |
(3.4) |
- |
(4.0) |
|
Total operating expenses |
(30.1) |
(9.2) |
(0.7) |
(40.0) |
|
Profit before taxation |
4.4 |
1.4 |
(2.6) |
3.2 |
1. AUM is gross loans and advances to customers and funding partners at the end of the period
Above is the analysis of the PBT for the year ended 31 March 2026 based on these segments.
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.
|
Funds under management (FUM) reconciliation to platform assets under management (AUM) |
As at 31 March 2026 |
As at 31 March 2025 |
|
|
|
|
|
£m |
£m |
Change |
|
Principal Investments |
943.2 |
683.9 |
38% |
|
|
Third-party funded |
2,872.4 |
2,548.9 |
13% |
|
|
Platform assets under management (AUM) |
|
3,815.6 |
3,232.8 |
18% |
|
Principal investments |
668.7 |
639.3 |
5% |
|
|
Third-party funded |
994.4 |
1,256.5 |
(21%) |
|
|
Unutilised funding facilities |
|
1,663.1 |
1,895.8 |
(12%) |
|
Principal investments |
1,611.8 |
1,323.2 |
22% |
|
|
Third-party funded |
3,866.9 |
3,805.4 |
2% |
|
|
Funds under management (FUM) |
|
5,478.7 |
5,128.6 |
7% |
1. AUM is gross loans and advances to customers and funding partners
The table above is the reconciliation between funds under management (FUM) and Platform assets under management (AUM) at 31 March 2026.
Principal investments FUM grew significantly, increasing by 22% year-on-year, primarily driven by the successful execution of the Mortimer 2025 securitisation. This transaction has materially strengthened our funding capacity and supported the scaling of Principal investments assets under management (AUM).
Third-party FUM increased 2% year-on-year, underpinned by continued commitments from strategic funding partners and reflects the latest securitisation completed by our third-party capital provider. Together, these flows reinforce the capital-light model, broadening revenue streams, increasing fee scalability and further validating the depth of demand across our core growth segments.
This dual-track growth underscores the successful execution of our strategy to simultaneously scale Principal Investments while accelerating third-party capital deployment, enhancing both capital efficiency and recurring fee-based income.
|
Consolidated statement of financial position |
As at 31 March 2026 |
As at 31 March 2025 |
|
|
|
|
|
£m |
£m (restated) |
Change |
|
Cash and cash equivalents |
78.3 |
55.7 |
41% |
|
|
Other receivables |
13.8 |
12.8 |
8% |
|
|
Loans and advances |
946.9 |
694.2 |
36% |
|
|
Investment securities |
18.6 |
34.7 |
(46%) |
|
|
Derivative financial asset |
10.4 |
1.9 |
n/m |
|
|
Other assets |
15.5 |
20.2 |
(24%) |
|
|
Total assets |
|
1,083.5 |
819.5 |
32% |
|
Other payables |
23.6 |
22.7 |
4% |
|
|
Interest bearing liabilities |
982.1 |
725.0 |
35% |
|
|
Lease liabilities |
4.9 |
5.5 |
(11%) |
|
|
Deferred taxation liability |
0.4 |
- |
- |
|
|
Total liabilities |
|
1,011.0 |
753.2 |
34% |
|
Net assets |
|
72.5 |
66.3 |
9% |
|
Share capital |
0.1 |
0.1 |
- |
|
|
Share premium |
55.2 |
55.2 |
- |
|
|
Other reserves |
22.1 |
18.6 |
19% |
|
|
Retained losses |
(4.9) |
(7.6) |
35% |
|
|
Total equity |
|
72.5 |
66.3 |
9% |
1.Comparisons where the percentage change is >200% or <(200%) are deemed not meaningful (n/m)
The above table includes the summary of assets, liabilities, and equity for the period.
Net assets
Net assets have increased by 9% to £72.5m (31 March 2025: £66.3m).
Loans and advances
Loans and advances increased by 36% to £946.9m (31 March 2025: £694.2m), underpinned by robust year-on-year growth in new lending. This substantial expansion reflects the successful execution of our core lending strategy, demonstrating continued momentum in origination activity for both principal investments on the balance sheet and third parties.
Investment securities
Investment securities declined by 46% to £18.6m (31 March 2025: £34.7m). This planned reduction aligns closely with our strategic shift towards Principal investments securitisation, effectively positioning the Group for future residual sale opportunities. Consistent with this strategy, no new investments were made within this asset class during the period.
Derivative financial asset
Derivative financial assets increased significantly to £10.4m (31 March 2025: £1.9m). This was driven by £6.7m of favourable market movements and £3.2m of premiums added to new off-market swaps.
Interest-bearing liabilities
Interest-bearing liabilities increased by 35% to £982.1m (31 March 2025: £725.0m), broadly in line with the growth of the Group's loan book. Approximately 99% of the increase was attributable to the successful completion of the Group's most recent securitisation transaction. As a result, more than 50% of the Group's funding is now sourced from high-quality public RMBS markets, providing a lower-cost, longer-term and more stable funding base. This continued evolution of the funding mix enhances funding resilience, supports sustainable growth and reinforces the capital-efficient nature of the Group's operating model.
Dividend
The Board is not recommending a final dividend for the year ended 31 March 2026. This decision reflects the Group's retained losses position at the period 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 |
Year ended 31 March 2026 |
Year ended 31 March 2025 |
|
|
|
|
|
£m |
£m (restated) |
Change |
|
Cash (used in) /generated from operating activities |
(242.5) |
(209.0) |
(16%) |
|
|
Net cash generated from investing activities |
14.2 |
3.8 |
n/m |
|
|
Net cash generated from /(used in) financing activities |
250.9 |
205.2 |
22% |
|
|
Net increase in cash and cash equivalents |
|
22.6 |
- |
n/m |
|
Cash and cash equivalents at beginning of the year |
55.7 |
55.7 |
(0%) |
|
|
Cash and cash equivalents at end of the year |
|
78.3 |
55.7 |
41% |
|
Comprising: |
||||
|
Unrestricted cash |
14.2 |
12.0 |
18% |
|
|
Restricted cash |
64.1 |
43.7 |
47% |
1.Comparisons where the percentage change is >200% or <(200%) are deemed not meaningful (n/m)
As at 31 March 2026, the Group held cash and cash equivalents of £78.3m, representing a 41% increase year-on-year (31 March 2025: £55.7m). This growth reflects strong financing inflows and improved operational and funding efficiency.
Of the total cash balance, £64.1m was restricted for designated loan funding and securitisation purposes (31 March 2025: £43.7m). The £20.5m increase primarily reflects a combination of timing-related factors and the growth of the Group's funding platform.
Approximately £10m of the increase relates to higher levels of collections in transit and wet funding at the period end, driven by the timing of loan redemptions and associated warehouse facility drawdowns. The remaining increase is principally attributable to the addition of a further Mortimer securitisation transaction during the year, resulting in higher reserve fund requirements and increased balances held within transaction accounts.
Unrestricted cash increased to £14.2m (31 March 2025: £12.0m), reflecting the Group's continued improvement in profitability and cash generation, providing additional liquidity and financial flexibility.
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 also considered the impact of the funding lines maturing in the next 12 months from the date of approval of the financial statements. In line with the normal operations of the Group, there are a number of facilities which mature or maybe refinanced during this period, however these are not considered to be a significant factor in going concern uncertainty.
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.
The Group's funding plans include a further residential mortgage-backed securitisation transaction, currently expected to be completed during 2026 once the underlying portfolio reaches the required scale. The transaction is expected to provide approximately £300m of additional funding capacity and release capital currently supporting the retained mezzanine and subordinated positions. In addition, the Group is progressing a further retail bond issuance of £75m, with £25m sold during 2026 to refinance the £14m retail bond maturing in October 2026 and to provide additional liquidity to support future funding requirements.
Key performance indicators
Platform assets under management (AUM)
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)
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, 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
New Lending represents total gross originations across both the third-party Funding platform and Principal investments channels, inclusive of all product transfer activity.
How we measure value for our shareholders
Net operating income (NOI)
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
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 taxation (PBT)
Profit before taxation (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)
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.
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