AUM reached £2.15bn at the end of FY22 (31 Mar ‘22), 36% up y-o-y (end FY21 AUM: £1.57bn), 18% up in H2 (AUM on 30 Sep ‘21: £1.83bn), and almost exactly in line with our forecast of £2.17bn. Continuing the trend of H1, buy-to-let lending was the main driver of growth.
FUM (‘funds under management’ i.e. capital committed by investors and available to lend out to borrowers) was largely unchanged from the end of H1 at £2.9bn (+2%), which was as expected, as LendInvest did secure a number of new or expanded funding lines during H1 to give itself ample capital headroom (currently just under £800m).
At a more macro level, despite significant general economic headwinds, LendInvest’s market environment - UK housing - has remained relatively robust. Longer term prospects also remain strong - buoyed fundamentally by a need to dramatically ramp up housing supply to meet demand.
There are no material changes to our forecasts. Our fundamental valuation remains 310p per share, 58% above the current share price.
