LendInvest nets 12.1m pre-tax gain from Mortimer BTL sale

LendInvest has successfully sold its non-risk retention residual economic interest in the Mortimer BTL 2023-1 securitisation, it announced on Friday, via its subsidiary LendInvest BTL.

The AIM-traded firm said the transaction, managed by Citi's secondary trading desk, yielded a net consideration of £5m.

It said the move aligned with its strategic objective to optimise its funds under management while simultaneously reducing its balance sheet exposure.

As a result of the transaction, the group's gross loans and advances would decrease by about £392m.

The sale was also expected to generate a net pre-tax gain of around £12.1m for the 2024 financial year.

“We are delighted to have successfully completed this sale, which will strengthen our balance sheet, and underlines our focus on returning the business to profitability,” said chief executive officer Rod Lockhart.

At 1057 GMT, shares in LendInvest were up 7.41% at 29p.

Reporting by Josh White for Sharecast.com.