Update on FY24 guidance
LendInvest withdraws £12.1m pre-tax gain from Mortimer securitisation sale due to accounting adjustment.
vs expectations: below
- Previously expected net gain from Mortimer BTL 2023-1 sale £12.1m
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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 31st March 2024 and an update on our strategy will be announced in July 2024.
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.