Update on FY24 guidance

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

LEI: 213800NWMK3O4UWP9N91 

17 June 2024

LendInvest plc

Update on FY24 guidance

LendInvest plc (AIM: LINV) ("LendInvest" or the "Company") announces that it has identified adjustments that will be made to its previously expected Net Operating Income ("NOI") and Profit Before Tax ("PBT") for FY 2024.

Background

On 5 January 2024, LendInvest announced that the sale of its residual economic interest in the Mortimer BTL 2023-1 plc securitisation (the "Sale"), would generate a net gain of approximately £12.1 million before tax.

The Company has now identified an isolated issue with the accounting advice concerning the Sale. The issue relates to Swap and Hedge Accounting assumptions that include mark-to-market adjustments and Fair Value Hedge Accounting applied as part of the derecognition calculation. 

FY 2024 Impact

On the basis of the Company's revised derecognition calculation in respect of the Sale, the Company advises the market to reduce expectations for NOI  and PBT for FY 2024 by disregarding the previously expected net gain of £12.1 million.

These adjustments have no impact on the Company's current cash position.

Outlook

Guidance for FY 2025 remains unchanged with respect to the Company's expectation of returning to profitability during the financial year. Full year results for the twelve months ending 31^st March 2024 and an update on our strategy will be announced in July 2024.

Enquiries:

LendInvest via Teneo                                                                                                +44 (0)20 7353 4200
Rod Lockhart, Chief Executive Officer                                      

Hugo Davies, Chief Capital Officer & Interim CFO
Leigh Rimmer, Director of Communications                                                                                   
[email protected]                       

Panmure Gordon (NOMAD and Broker)                                                +44 (0)20 7886 2500
Atholl Tweedie
David Watkins
 

Teneo (Financial PR)                                                                                                  +44 (0)20 7353 4200
Tom Murray
Ed Cropley
Olivia Lucas 

Important Notice

The information contained within this announcement is deemed by LendInvest to constitute inside information as stipulated under the UK Market Abuse Regulation. By the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain. The person responsible for arranging for the release of this announcement on behalf of LendInvest is Rod Lockhart.

Forward-looking statements

Certain statements in this announcement 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", "continue", "aim", "target", "projected", "plan", "goal", "achieve" and words of similar meaning or in each case, their negative, or other variations or comparable terminology. Forward-looking statements are based on current expectations and assumptions and are subject to a number of known and unknown risks, uncertainties and other important factors that could cause results or events to differ materially from what is expressed or implied by those statements. Many factors may cause actual results, performance or achievements of LendInvest to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Important factors that could cause actual results, performance or achievements of LendInvest to differ materially from the expectations of LendInvest, include, among other things, general business and economic conditions globally, industry trends, competition, changes in government and changes in regulation and policy, changes in its business strategy, political and economic uncertainty and other factors. As such, undue reliance should not be placed on forward-looking statements. Any forward-looking statement is based on information available to LendInvest as of the date of the statement. All written or oral forward-looking statements attributable to LendInvest are qualified by this caution. Other than in accordance with legal and regulatory obligations, LendInvest undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Nothing in this announcement should be regarded as a profit forecast.