Lendinvest PLC on Tuesday said it slightly increased its annual profit and raised its total payout despite earnings falling amid an ‘uncertain’ and ‘challenging’ climate, expressing confidence in its resilience and adaptability.

The London-based non-bank mortgage lender said pretax profit for the year ended March 31 was £14.3 million, up 1% from £14.2 million the previous year. Net operating income increased 8% to £54.7 million from £50.5 million over the same periods.

However adjusted earnings before interest, tax, depreciation and amortisation fell by 30% to £14.3 million from £20.3 million, while basic earnings per share remained unchanged at 8.3 pence. Lendinvest’s total operating expenses meanwhile increased 11% to £40.4 million from £36.3 million.

Lendinvest declared a 3.2p per share final dividend. This brought the full-year payout up to 4.5p per share, up from its 4.4p maiden gross dividend for financial 2022.

‘Looking back at our achievements in what was one of the most challenging years since the global financial crisis has reinforced my confidence in our ability to execute successfully on our strategic objectives,’ said Chief Executive Officer Rod Lockhart.

Going forward, Lockhart said Lendinvest faces various headwinds including interest rates most likely continuing to rise while property prices keep declining.

However, he said Lendinvest remains confident ‘in the resilience of our business model, our ability to disrupt, to be agile and quickly respond to changing market conditions and to win market share.’ The company expects its financial 2024 performance to be ‘heavily weighted’ towards the second half year.

‘While risks and challenges persist, we believe that our proactive approach, coupled with our strategic focus and deep industry expertise, will position us for sustainable growth and success in the coming years,’ Lockhart concluded.

Shares in Lendinvest were up 4.1% at 51.00p on Tuesday in London.

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