Financial services group upbeat with 30% profit rise
Specialist lender Together has delivered record results for 2017, reporting a £30% profit rise and boosting its loan book to £2.24bn.
The Cheadle, Greater Manchester-based finance company reported underlying profit before tax of £117.1m for the year to June 30, up from £90.3m the year before.
Underlying EBITDA was up 21.4% to £193.4m from 159.3m in 2016.
Mike McTighe, group chairman of Together, said: “Together delivered another record performance in the year to 30 June 2017, with sustained growth in lending volumes and profitability underpinned by continued investment for future growth and a corresponding increase in the scale, depth and diversity of our funding structure.
“We further enhanced our position as one of the UK’s leading specialist secured lenders, growing the loan book by 24.4% to £2.24bn, with originations averaging over £98.8m per month and our weighted average loan-to-value of new originations remaining conservative at 57.1%. We also increased underlying profit before tax by 29.7% to £117.1m while accelerating our programme of significant investment across the business to support our future growth ambitions.”
The group said it raised significant additional liquidity to support future growth, issuing £575m of senior secured notes and repaying £300m of existing notes, introducing a new £90m asset-backed facility and increasing and extending its revolving credit facility.
“During the year, the existing majority shareholders acquired the remaining shares from Equistone Partners and Standard Life Investments, clearly demonstrating their belief in the group’s growth strategy and prospects,” McTighe said.
“While the performance of the UK economy has been mixed and Brexit uncertainties remain, with our proven business model, 43-year track record of profitability and significant growth opportunities, we believe that Together has an exciting future.”
