LEI: 213800NWMK3O4UWP9N91
19 April 2023
LendInvest plc
Sale of residual economic interest in securitisation
LendInvest plc (AIM: LINV, "LendInvest" or the "Group"), the UK's leading platform for mortgages, through its wholly owned subsidiary, LendInvest BTL Limited, announces that it has today successfully completed the sale of its non-risk retention residual economic interest in the Mortimer BTL 2021-1 plc securitisation for a cash consideration of £8.565 million (the "Transaction"). Citi purchased the residual economic interest for onward sale.
In line with the Group's strategy to optimise its funds under management, while at the same time moving more assets off its balance sheet, the Transaction results in a reduction in the Group's gross loans and advances of £236 million. The Transaction also generates a net pre-tax profit of £10.8 million1 for the year ended 31 March 2024, recognised through the P&L.
The Group continues to pursue further potential sales of financial assets currently held on its balance sheet in the current financial year which are expected to offset (or partially offset) the effect of the Transaction in P&L terms. As such, Management's expectations of the Group's performance for the year ended 31 March 2024 remain unchanged.
1 The difference between the cash consideration and the Group's net gain is driven by the Group no longer consolidating the Mortimer BTL 2021-1 plc securitisation entity into the Group's results.
Enquiries:
LendInvest via Teneo +44 (0)20 7353 4200
Rod Lockhart, Chief Executive Officer
Michael Evans, Chief Financial Officer
Alex Dee, Head of Investor Relations
Leigh Rimmer, Head of External Communications
investorrelations@lendinvest.com
Panmure Gordon (NOMAD and Joint Broker) +44 (0)20 7886 2500
Atholl Tweedie / Stephen Jones / Tom Scrivens
finnCap Limited (Joint Broker) +44 (0)20 7220 0500
Jonny Franklin-Adams/George Dollemore (Corporate Finance)
Tim Redfern/Alice Lane (ECM)
Teneo (Financial PR) +44 (0)20 7353 4200
Tom Murray / Ed Cropley / Olivia Lucas
Important Notices
Certain statements in this announcement are forward-looking statements. In some cases, these forward looking statements can be identified by the use of forward looking terminology including the terms "anticipate", "believe", "intend", "estimate", "expect", "may", "will", "seek", "continue", "aim", "target", "projected", "plan", "goal", "achieve" and words of similar meaning or in each case, their negative, or other variations or comparable terminology. Forward-looking statements are based on '''current expectations and assumptions and are subject to a number of known and unknown risks, uncertainties and other important factors that could cause results or events to differ materially from what is expressed or implied by those statements. Many factors may cause actual results, performance or achievements of LendInvest to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Important factors that could cause actual results, performance or achievements of LendInvest to differ materially from the expectations of LendInvest, include, among other things, general business and economic conditions globally, industry trends, competition, changes in government and changes in regulation and policy, changes in its business strategy, political and economic uncertainty and other factors. As such, undue reliance should not be placed on forward-looking statements. Any forward-looking statement is based on information available to LendInvest as of the date of the statement. All written or oral forward-looking statements attributable to LendInvest are qualified by this caution. Other than in accordance with legal and regulatory obligations, LendInvest undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Nothing in this announcement should be regarded as a profit forecast.
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