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LendInvest PLC - London-based non-bank mortgage lender - Says subsidiary LendInvest BTL Ltd has completed the sale of its residual economic interest in the Mortimer BTL 2022-1 PLC securitisation for £5.8 million in cash. Lendlnvest says the transaction will generate a net pretax gain of £3.3 million for financial 2023, which will largely be recognised in the first half. Says the difference between the net gain and cash consideration is driven by the gross profit lost in the second half of the financial year.
Looking ahead, the company has adjusted its pretax profit forecast for financial 2024 by £2.3 million lower and for financial 2025 by £2.0 million lower, as a result of the impact of the transaction on the timing of the group's profit recognition. Says the the transaction will result of in a reduction of the company's gross loans and advances of about £280 million.
Chief Executive Officer Rod Lockhart says: ‘This transaction demonstrates our proactive approach to capital management and our ability to execute capital markets transactions even in difficult markets. Investor demand and the final terms achieved further reflect investor confidence in the quality of our underwriting and our track record.’
Current stock price: 149.50 pence
12-month change: down 28%
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