LendInvest — Scalable growth on the horizon

LendInvest (LINV)

Last close As at 25/07/2025

GBP0.43

−0.50 (−1.15%)

Market capitalisation

GBP62m

More on this equity

Research: Financials

LendInvest — Scalable growth on the horizon

After a tough year, LendInvest (LINV) has turned a corner and returned to profitability, with H225 PBT turning positive. The mortgage origination division continues to drive the recovery in growth, with lending increasing by more than 60% in FY25. The company should continue to benefit from the recovery in the UK buy-to-let mortgage market, with falling base rates acting as a tailwind to demand. The cost base has been significantly restructured to increase speed and efficiency in the underwriting parts of the business. LINV’s FY25 results were materially ahead of consensus, which caused the share price to increase by 15% on the day. Medium-term consensus estimates assume double-digit growth in revenues in FY27.

Martyn King

Written by

Martyn King

Director, Financials

Financials

QuickView

25 July 2025

Price 43.50p
Market cap £62m
Price Performance
Share details
Code LINV
Listing LSE

Shares in issue

142.8m

Net cash/(debt) at end FY25


£(7.0)m

Business description

LendInvest is a UK asset management platform for property finance. It provides investors with a range of solutions to access and gain exposure to the UK property market. For borrowers, it provides access to capital (as mortgages) through its platform.

Bull points

  • Fast-growing buy-to-let mortgage origination platform.
  • A well-established technology that is scalable.
  • Strong recovery of revenues in a falling interest rate environment.

Bear points

  • Mortgage market competitive.
  • Pressure on buy-to-let market from regulatory reforms.
  • Demand sensitive to changes in economic conditions.

Analysts

Martyn King
+44 (0)20 3077 5700
Jonathan Richards
+44 (0)20 3077 5700

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Strong FY25 results ahead of consensus expectations

On 21 July, LINV reported FY25 results, which were ahead of market expectations. Strong revenues of £38.6m (+96% y-o-y) were 11% ahead of consensus (£34.8m). Importantly, the company posted H225 PBT of £0.5m, compared to a £1.7m loss in H125. Adjusted EBITDA was also positive at £3.2m compared with a £19m loss in FY24 and better than the £2.5m loss consensus estimate. Total operating expenses decreased by 22% to £39.8m, principally driven by lower staffing costs and efficiency savings.

Positive outlook, with focus on increasing profitability

LINV will focus on driving lending growth, improving efficiency and growing profitability in FY26. It secured improved terms on several funding commitments from large institutions, including a £500m increase in its separate account funding agreement with JP Morgan, as well as funding from BNP Paribas and HSBC. Coupled with completion of its sixth securitisation, these deals give LINV ample runway for growth over the medium term. Additionally, it showed operational efficiency gains, with buy-to-let underwriters processing up to six cases per day, a 50% increase over FY24. Management believes its current platform is scalable and can roughly double lending volumes without a significant increase in operating expenses. This should drive profitability higher over the medium term, in our view.

Valuation: Revenue growth continues

The stock was up by >15% on the day of results, with guidance remaining in line with market expectations and consensus forecasts increased to account for the strong results beat. Consensus factors in 7% revenue growth in FY26, before accelerating to 13% in FY27. FY26 EPS is forecast to turn positive, with strong top-line growth supporting of the share price given LINV’s technology focus.

Source: Company data, LSEG Data & Analytics

Consensus estimates

Year end Revenue (£m) EBITDA (£m) EPS (p) EV/EBITDA (x) P/E (x)
3/24 19.7 (19.0) (14.50) N/A N/A
3/25 38.6 3.2 (1.10) 21.6 N/A
3/26e 41.2 3.9 1.50 17.7 29.0
3/27e 46.6 5.8 2.70 12.0 16.1

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