LONDON - LendInvest Secured Income II PLC, a UK-based company specializing in property finance services, has released its interim financial results for the six months ending September 30, 2024. During the reporting period, the company generated revenue of £5.2 million, up from £1.7 million in the same period of 2023. The company's interest expenses also rose to £4.3 million from £1.4 million in the previous year, resulting in a net income margin of 17% for both periods.
Despite the rise in revenue, administrative expenses and impairment provisions climbed to £1.2 million, compared to £0.3 million in 2023. Consequently, LendInvest Secured Income II experienced a loss before tax of £0.3 million, compared to a break-even point the year prior.
As of September 30, 2024, the company reported £87.6 million in outstanding issued bonds by principal value, an increase from £80.2 million on March 31, 2024. The gross loan book also grew to £34.8 million from £32.9 million.
The company highlighted its compliance with all covenants outlined in the prospectus issued on July 12, 2022. These include obligations such as the provision of financial statements, maintaining certain portfolio limits, and interest coverage ratios.
In assessing the company's risk management framework, the Board considered various risks including credit, market, and liquidity risks. The directors expressed confidence that the business could absorb losses from potential defaulting borrowers even against the current market backdrop, citing a loan-to-value rate of under 70% for lending within their risk appetite.
The report also provided an outlook on the housing market, noting both challenges and opportunities. The market's performance suggested optimism driven by shifting expectations around interest rates, though tempered by caution due to recent fiscal policy changes and geopolitical uncertainties.
Regarding liquidity risk, the company has strategies in place to ensure it can meet its financial obligations, including the potential securitization of assets.
The directors have prepared the financial statements on a going concern basis, reflecting their belief that the company has sufficient resources to operate for at least the next 12 months. This is supported by the company's financial plan and the ability to refinance or sell loans if necessary.
Key performance indicators for the period included a gross loan book of £34.8 million and an interest coverage ratio of 120%. The company reported a loss before tax of £266,000.
The report concluded with a statement of responsibility from the directors, confirming the interim financial statements give a true and fair view of the company's financial position.
This summary is based on a press release statement and does not include any speculative content or subjective assessments.
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