LendInvest PLC · LSE:LINV
LendInvest — FY2022 Earnings Presentation
28 slides from LendInvest's earnings presentation, Jun 29, 2022
Slide 1: Full year results for the year to 31 March 2022
Full year results for the year to 31 March 2022 Property finance made simple 29 June 2022
Slide 2: Record FuM and strong demand for Buy-to-Let drove growth
Record FuM and strong demand for Buy-to-Let products drove growth 1 £2,937m £2,146m £87.8m Funds under management Platform AuM Revenue 18% 36% 21% £20.3m £14.2m 4.4p Adjusted EBITDA Profit before tax Dividend per share 90% 190% maiden dividend Delivering exceptional growth in profit, in line with ma
Slide 3: Property finance made simple for investors and borrowers
Property finance made simple for investors and borrowers 2 Investors Brokers & & Financial Partners Borrowers We define capital raised and ready Once the capital is lent out or to be deployed as Funds under deployed, we define that as The property finance Management Platform assets under Management
Slide 4: Delivering on our strategic priorities
We’re delivering on what we said at IPO 3 Grow FuM and Launch new products Accelerate tech roadmap Platform AuM £150m financial partnership Relaunched Regulated Launched new with Barclays & HSBC Bridging product Bridging broker portal resulting in a 35% increase in Bridging applications £100m increa
Slide 5: Financial Performance
(lendinvest Financial Performance
Slide 6: Delivering high revenue growth with operating leverage
Delivering high revenue growth with operating leverage 5 Full Year to Full year to 31 March 2022 31 March 2021 Change (£m) Restated (£m) (%) Platform AuM increased by 36% primarily driven by a 67% increase in Buy-to-Let platform AuM Platform AuM 2,146.1 1,573.3 36 Fee income 22.7 16.6 37 Interest in
Slide 7: Diverse revenue sources
Diverse revenue sources 6 Customer Revenue Amount (£m) Recurring* Driver % of total revenue Management fees Servicing fees Investors & 21.8 Platform AuM 25% Financial Partners Performance fees Gain on derecognition of financial assets Interest income 58.6 Platform AuM Brokers & 75% Borrowers Arrange
Slide 8: Growth in Platform AuM drives income growth
Growth in Platform AuM drives income growth 7 Platform AuM of £2.1bn Total income of £87.8m 2,500.00 100 £87.8m £2,146.1m 21% 2,000.00 36% £72.4m £646.0m 75 £1,573.3m 1,500.00 £58.6m £677.6m 50 £50.0m 1,000.00 £1,500.1m 25 £6.5m 500.00 £895.7m £5.8m £22.7m £16.6m 0.0 0 FY 2021 FY 2022 FY 2021 FY 202
Slide 9: Technology drives operating leverage and transforms the customer experience
Technology drives operating leverage and transforms the customer experience 8 Technology delivering efficiency Operational time savings per loan 3.50% 2500 Technology Pre tech build Post tech build Loan Engine 45 mins 5 mins 3.00% 2000 Rules Engine 30 mins 5 mins Opex as % of Average AUM New Broker
Slide 10: Looking ahead
9 Looking ahead
Slide 11: Well-positioned, in the current environment and for long-term growth
Well-positioned, in the current environment and for long-term growth 10 Challenges Strategy Resilience Macro headwinds Our response to a slower UK market LendInvest business model providing resilience Highest rate of inflation since 198 Although house price growth is Diverse investor base and lendin
Slide 12: Consistent growth and resilience despite the unknown unknowns
Consistent growth and resilience despite the unknown unknowns 11 69% CAGR Unexpected events served to highlight the 3,000 resilience of our platform, acceleratingg rowth and profitability COVID-19 By July 2020 we had bounced back from COVID 2,000 and reached record level of signed applications We
Slide 13: Multiple drivers for future growth
Multiple drivers for future growth 12 Grow FuM and Launch new products Accelerate tech roadmap Platform AuM New separate accounts and Recently launched Portfolio NextGen Buy-to-Let funds Buy-to-Let product experience Refinancing of our Bond Specialist Homeowner Development of machine programme produ
Slide 14: Significant growth opportunity in existing and adjacent markets
Significant growth opportunity in existing and adjacent markets 13 Specialist homeowner Grow FuM and Platform AuM Multitude of headwinds resulting in volatile markets Launch new products Launch of our specialist homeowner product is a significant step as it takes us into a major new market segmen Ta
Slide 15: Confidence in our strategy supports a reliable, growing dividend
Confidence in our strategy supports a reliable, growing dividend 14 Strong financials New dividend policy Profitable and cash generativ New progressive dividend polic Diversified revenue strea Board recommends full year dividend of 4.4 Operational gearing supports profitable The dividend reflects th
Slide 16: Summary
Summary 15 £2,146m Delivered strong growth in Platform AuM and Platform AuM profitability driven by robust demand forour Buy-to- Let product 36% Our growth isunderpinned by our technology, which drives efficiency and facilitates operatingleverage £87.8m Revenue Cash generation supports a
Slide 17: Q&A
(lendinvest Q&A
Slide 18: Appendices
Wlendinvest Appendices
Slide 19: At a glance
At a glance 18 What we do Key financial metrics Activity: We are the UK’s leading asset management platform for property finance. We provide investors with a range of solutions to easily access and £2.1bn £20.3m £14.2m 8.0p gain exposure to this market. For borrowers, we make it simpler to access th
Slide 20: Investment case
Investment case 19 #1 #2 Competitive edge underpinned by Proven ability to launch and scale new proprietary technology products Our technology disrupts; our service differentiates; #3 #4 our people are dedicated; Large and diverse pool of investor Technology investments driving scale capital and eff
Slide 21: Our platform can address the whole UK market
Our platform can address the whole UK market 20 Bridging/short-term £0.4bn1/c.£6bn2 (19% of Platform AuM) Development £0.2bn1/c.£24bn2 (11% of Platform AuM) Professional Buy-to-let £1.5bn1/c.£120bn2 (70% of Platform AuM) Specialist Homeowner c.£100bn2 (Launch targeted FY23) Consumer Buy-to-let c.£10
Slide 22: Our revenue model drives recurring income | Buy to Let
Our revenue model drives recurring income | Buy to Let 21 Separate Account Financial Partnerships & RMBS 4.00% 4.00% 3.60% 3.00% 3.00% 1.36% 2.00% 2.00% 2.50% to 3.00% 1.00% 1.00% 2.24% 0.00% 0.00% Management and servicing Cost of funding Platform margin Notes: Management and servicing, cost of fund
Slide 23: Our revenue model drives recurring income | Short term
Our revenue model drives recurring income | Short term 22 Funds & Separate Accounts Financial Partnerships & Bonds 9.34% 4.00% 10.00% 3.00% 2.36% 7.50% 4.25% 0.29% 2.00% 5.00% 1.00% 2.07% 2.50% 5.09% 0.00% 0.00% Management and Servicing Performance Cost of funding Platform margin Notes: Management a
Slide 24: Balance sheet
Balance sheet 23 As at 31 March 2022 As at 31 March 2021 Balance sheet (£m) Restated (£m) Cash and cash equivalents 118.2 62.2 Trade and other receivables 6.3 6.4 Loans and advances 1,209.1 1,056.6 Other assets 44.3 15.6 Total assets 1,377.9 1,140.8 Trade and other payables (48.6) (27.1) Interest be
Slide 25: Limited credit risk exposure
Limited credit risk exposure 24 2.5bn £2,146.1m 2bn No risk retained 1.5bn 1bn 500m £111.0m 0 £19.3m £10.0m £25.6m Platform Aum First loss Non-investment Investment Guarantee grade RMBS grade RMBS Financial partnership (Long-term) Financial partnership (Short-term) RMBS 2019 RMBS 2020 RMBS 2021 List
Slide 26: Lending sustainably and with purpose
Lending sustainably and with purpose 25 £1bn+ 3,000+ £600m+ 14,000+ of existing property ‘upcycled’ through new homes built and brought to market of our Buy-to-Let loans were for properties jobs created by our development lending upgrade or conversion resulting in a since 2015 thanks to finance prov
Slide 27: Disclaimer
Disclaimer 26 Certain statements in this presentation 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”, “conti
Slide 28: Thank you!
Thank you! For more information Alex Dee Head of Investor Relations [email protected] lendinvest.com