Sale of residual economic interest in RMBS

RNS Number : 5739R

Lendinvest PLC

01 March 2023

 

LEI: 213800NWMK3O4UWP9N91 

1 March 2023

LendInvest plc

Sale of residual economic interest in securitisation

LendInvest plc (AIM: LINV, "LendInvest" or the "Group"), the UK's leading platform for mortgages has, through its LendInvest BTL Limited subsidiary, successfully completed the sale of its non-risk retention residual economic interest in the Mortimer BTL 2020-1 plc securitisation for a cash consideration of £7.0 million. Citi's secondary trading desk managed the sale process and purchase for onward sale.

In line with the Group's strategy to optimise its funds under management, while at the same time moving more assets off its balance sheet, the transaction will result in a reduction in the Group's gross loans and advances of £212 million. The transaction will generate a net pre-tax gain of £1.4 million for FY2023 inline with management's expectations.

The difference between the cash consideration and the Group's net gain is driven by gross profit lost in the final month of the financial year, and the impact of no longer consolidating the Mortimer BTL 2020-1 plc securitisation entity into the Group's results.

Enquiries:

LendInvest via Tulchan Communications     [phone]
Rod Lockhart, Chief Executive Officer 
Michael Evans, Chief Financial Officer
Alex Dee, Head of Investor Relations
Leigh Rimmer, Senior PR Manager   
[e-mail]   

Panmure Gordon (NOMAD and Joint Broker)          [phone]
Atholl Tweedie
Gabriel Hamlyn

finnCap Limited (Joint Broker)            [phone]
Jonny Franklin-Adams/George Dollemore (Corporate Finance)
Tim Redfern/Alice Lane (ECM)

Tulchan Communications (Financial PR)        [phone]
Tom Murray
Olivia Lucas 

Important Notices
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.

 

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