Half-year results to 30 Sept 21 (H1 22) show continuing strength in LendInvest’s growth and profitability trajectory. AUM grew 16% over H1 from £1.57bn to £1.83bn with 32% growth y-o-y (H1 21: £1.39bn). H1 revenue grew 30% y-o-y from £39.1m to £50.8m. AUM growth has continued into H2, reaching £1.9bn by 30 Nov.
However, most impressive was LendInvest’s profitability. H1 adjusted EBITDA jumped 179% from £4.8m to £13.4m with PAT increasing from -£0.13m to £8.3m (full year FY21 PAT £4.9m).
The balance sheet remains strong, with net assets increasing from £48.2m on 31 Mar 21 to £106.6m on 30 Sep 21. Cash and cash equivalents stood at £169.9m, however £100.1m of this is restricted for loan funding purposes. The remaining cash balance of £69.8m has increased by £52.1m over H1, with around £36m of cash (net after costs) raised via the July 21 IPO.
In terms of UK residential property market conditions, recent statistics show that property prices, transaction volumes, and mortgage lending volumes all remain strong. We believe the group is on track to achieve its medium-term ambitions: trebling AUM over the three years from FY21 to FY24, and increasing EBITDA by 3-5x.
Our fundamental valuation remains 310p per share, around 57% above the current share price.
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