BridgingBuy-to-letCommercial FinanceNewsSecond Charge

Together’s loan book up 24.6% year-on-year

Specialist secured lender Together’s loan book reached £3.47bn in Q3, up 24.6% from £2.78bn in Q3 2018.

The lender’s average monthly loan originations were in line with the second quarter of this year and up 20.5% on the same period last year, while origination LTVs remained conservative at 58.0% and principal losses very low at less than 0.1%.

Profit before tax remained strong at £31.4m, up 8.8% on the same quarter last year and in line with the previous quarter and the Group remained highly cash generative, with cash receipts of £376.7m for the period.

Mike McTighe, group chairman, said: “Together delivered another solid performance in the third quarter, with robust lending volumes at low LTVs growing the loan book to £3.47bn, as profitability and cash generation remained strong.

“We further extended our distribution capabilities during the quarter, appointing a head of corporate relationships and building out our team to support our larger corporate customers, while also increasing the number of strategic broking partners in our Together+ platform to 40.

“We have also added further depth of maturity across our funding platform having successfully completed the refinancing of our Delta securitisation facility in March, increasing the size by £110m and extending the maturity to 2023.

“The UK’s economic outlook remains uncertain with the Brexit deadline extended until the end of October.

“Lead indicators are also mixed with continued wage growth, unemployment at a 44 year low and the annual rate of growth in house prices remaining stable, being offset partially by weaker consumer spending.

“Despite the continuing uncertainty, we are seeing strong ongoing demand for our products and believe that Together remains well placed to deliver on our future growth plans.”

Marc Goldberg, commercial finance chief executive, added: “We are very proud to be announcing another good set of results for the quarter, reflecting the continued hard work and dedication of all of our colleagues and our commitment to delivering great service and positive outcomes to our customers.

“The future is very exciting for everyone at Together and we look forward to continuing to grow the business and helping more personal and business customers to achieve their financial ambitions.”

Pete Ball, Personal Finance chief executive, said: “Together’s robust quarterly growth is a great testament to the success of our unique model and our commitment to continually developing our offering to customers.

“During the quarter, we further extended our distribution capabilities, launching and building our Together+ platform for strategic broking partners and we continued to proactively engage with customers to enhance service, communication and outcomes.”


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