In the twelve months to 31 March 2016, gross revenues surged to £32 million from £14 million in 2015. Profits increased marginally to £3.4 million to £3.3 million. There was an 84% increase in total annual lending.
Gross revenue for the first four months of the new financial year was 59% higher than for the same period last year
Incoming platform investment and total lending volumes were 50% and 29% higher respectively in the three months since the Brexit vote, compared with the same period in 2016.
“In light of the headwinds that the Brexit vote has caused for the UK’s economy, it’s been particularly rewarding to see customer demand for our products still growing and we look forward to building on this positive momentum in the next year,” said Christian Faes, co-founder and CEO of LendInvest.
LendInvest diversified its funding model during the year to maintain a stable funding environment, increase its lending capacity, and expand the options for investors in the UK’s lower-for-longer interest rate environment.
During the financial year, funds managed on LendInvest’s online investment platform grew by 135% to £80 million. The company also secured further committed institutional funding. The company now operates four bank funding lines, including a £40 million warehouse line from Macquarie
LendInvest reported that demand from professional borrowers grew steadily over the year, enabling the company to help fill a critical funding gap. During the period, the company lent more in the year than in the preceding 18 months (£320 million in FY16, versus £260 million between launch and end of FY15).
LendInvest also launched a dedicated development finance team that underwrote 14 deals in its first four months of operation to year-end.
“In this lower for longer interest rate environment, the continued search for yield remains ever more prevalent among,” said Faes. “Investors of all types and we are working hard to be able to supply better access points to a much sought after asset class that have never before existed.
“Likewise, short-term borrowers and small-scale property developers remain vitally underserved by traditional lenders, creating a substantial market opportunity for agile non-bank lenders like LendInvest.”