LendInvest PLC on Tuesday announced no interim dividend, a change from a year ago, as it swung to a pretax loss amid a contraction in new lending.

The London-based non-bank mortgage lender said it swung to a pretax loss of £15.1 million in the six months to September 30, from a pretax profit of £14.8 million a year prior.

New lending contracted by 28% to £415.2 million from £575.0 million.

Funds under management however rose 21% to £4.18 billion as at September 30, from £3.44 billion a year prior.

Assets under management grew 11% to £2.70 billion from £2.43 billion over the same period.

Net assets climbed 12% to £67.5 million as at September 30 from £60.2 million year-on-year.

The company decided against declaring an interim dividend, compared to a 1.3p payout a year prior.

Looking ahead, the company expects full-year pretax profit to be in line with financial 2023’s £14.3 million, but anticipates some margin compression from higher interest costs in the first financial half which could normalise towards the end of the second financial half.

The company’s financial year ends on March 31.

Chief Executive Rod Lockhart said: ‘We are well-positioned to weather the current difficult macroeconomic backdrop, given our robust business model, diverse sources of capital and ability to respond with new products in a fast-changing environment. We recently launched a two-year tracker product to support landlords while they navigate the changing economic environment, which is already proving popular.’

LendInvest shares fell 10% to 26.00 pence each on Tuesday afternoon in London.

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