Together Financial Services’ Q125 Results

Together Financial Services Limited (‘Together’ or ‘the Group’), one of the UK’s leading non-bank relationship lenders, is pleased to announce its results for the quarter ended September 30, 2024.

Commenting on today’s results, Mike McTighe, Chairman of Together, said:

“Together delivered another strong performance in the quarter to 30 September, growing the loan book to £7.6bn while the Group remained highly profitable and cash generative.

“Originations remained robust as we further increased interest receivable and similar income, underlying profit before tax and cash receipts during the quarter, and we successfully raised or refinanced over £1bn of facilities to end the period with c£1.0bn of funding headroom. We have continued to strengthen and enhance our Executive team, announcing the appointment of Richard Rowntree as our new CEO and promoting Chris Adams to CFO and John Barker to CEO of our Personal Finance division. We were also delighted to be named one of ‘Europe’s Long-term Growth Champions’ by the Financial Times in October.

“While inflation is now close to the Bank of England’s target and interest rates are continuing to reduce gradually, UK economic growth is forecast to remain modest. Against this backdrop and as evidenced by our recent residential property market report, we expect many more customers will be underserved by mainstream lenders and look to specialist lenders, like Together, for support. We will continue to be there to help our customers realise their ambitions and to play our part in supporting the UK economy, as we have for the last 50 years.”

Financial highlights: quarter ended September 30, 2024:

Robust loan book growth at conservative LTVs
– Average monthly lending of £269.3m, up 20.5% on Q1‘24 (£223.5m), slightly down 3.5% on Q4‘24 (£279.2m)
( Conservative weighted average origination LTVs of 60.0% (Q1‘24: 58.6%; Q4‘24: 60.1%)- Group net loan book increased to £7.6bn, up 14.7% on Q1‘24 (£6.6bn) and up 3.0% on Q4‘24 (£7.4bn)
(Weighted average indexed LTV remains very low at 55.6% (Q1‘24: 56.2%; Q4‘24: 55.7%)
( In line with the wider industry, we are seeing some increases in arrears and continue to manage carefully)

Strong and sustainable financial performance
– Interest receivable and similar income of £214.5m, up 17.3% on Q1‘24 (£182.9m) and up 3.7% on Q4‘24 (£206.9m)
– Net interest margin remains in line with prior quarter at 5.2% (Q1‘24: 5.5%; Q4‘24: 5.2%)- Annualised cost of risk of 0.79% (Q1‘24: 0.76%; Q4‘24: 0.85%)
– Group remains highly profitable and cash generative
(Underlying profit before tax of £53.7m, up 12.6% on Q1‘24 (£47.7m) and up 1.3% on Q4‘24 (£53.0m) primarily due to the increase in net interest income during the period and continued cost efficiency with underlying cost to income ratio remaining low at 30.3% (Q1’24: 31.6%; Q4’24: 28.0%)
( Cash receipts of £787.6m (Q1‘24: £653.8m; Q4‘24: £723.9m) as redemptions remained strong)

Q1 25 RNS – final 201124