LEI: 213800NWMK3O4UWP9N91

12^th August 2022

LendInvest plc

Sale of residual economic interest in securitisation

LendInvest plc (LSE: LINV), ("LendInvest" or the "Group"), a leading technology driven asset manager for UK property finance, is pleased to announce that its wholly owned subsidiary, LendInvest BTL Limited has successfully completed the sale of its residual economic interest in the Mortimer BTL 2022-1 plc securitisation for cash consideration of £5.8 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 c.£280 million. The transaction brings forward profit recognition for the Group from future financial years and will therefore generate a net pre-tax gain of £3.3 million for FY2023, which will largely be recognised in H1 FY2023.

The difference between the cash consideration and the Group's net gain is driven by gross profit lost in the second half of the financial year, and the impact of no longer consolidating the Mortimer BTL 2022-1 plc entity into the Group's results.

These brought forward profits are offset by the weaker performance in the Group's Buy-to-Let division as a result of volatility in interest swap rates in the first half of 2022. Given the impact of the transaction on the timing of the Group's profit recognition, the Group has adjusted its profit before tax forecast for FY2024 by £2.3 million lower and for FY2025 by £2.0 million lower.

Commenting on the transaction, Rod Lockhart, CEO of LendInvest, said: "This transaction demonstrates our proactive approach to capital management and our ability to execute capital markets transactions even in difficult markets.  Investor demand and the final terms achieved further reflect investor confidence in the quality of our underwriting and our track record."

Enquiries:

LendInvest via Tulchan Communications                                                     +44 (0)20 7353 4200
Rod Lockhart, Chief Executive Officer                                       
Michael Evans, Chief Financial Officer
Alex Dee, Head of Investor Relations
Leigh Rimmer, Senior PR Manager                                                                                        
[email protected]                       

Panmure Gordon (NOMAD and Joint Broker)                                            +44 (0)20 7886 2500
Charles Leigh-Pemberton
Atholl Tweedie
Gabriel Hamlyn

finnCap Limited (Joint Broker)                                                                    +44 (0)20 7220 0500
Jonny Franklin-Adams/George Dollemore (Corporate Finance)
Tim Redfern/Alice Lane (ECM)

Tulchan Communications (Financial PR)                                                   +44 (0)20 7353 4200
Tom Murray
Matt Low
Misha Bayliss
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.