‘Robust’ third quarter results for financial services firm
Specialist mortgage and secured loan provider Together has grown its loan book to a record high of £4.8bn but underlying pre-tax profits were down 4%.
Reporting its Q3 results for the three months to the end of March 2022, the Cheadle headquartered group said its loan book grew 21.5% compared with £3.9bn for the same period last year, and up 8% compared with £4.4bn at December 31, 2021.
February and March 2022 saw consecutive record monthly loan originations of £237m and £263m respectively as the Group continued to increase lending volumes.
It said underlying pre-tax profits were down 6.1% to £41.3m compared with £44m in Q3 of last year and down 4% compared with £43m in Q2 of 2022 owing primarily to the movement in underlying net interest margin.
Cash generation “remains robust”, with cash receipts of £456m, up 8.7% on last year’s £419.4m.
Gerald Grimes, Group CEO Designate of Together, said Together remains “robustly profitable and cash generative.”
“We continued to shape our business for the future, delivering further improvements to our systems and to the experience for our customers and intermediaries, and we were very proud to receive a Business Moneyfacts award for Innovation in SME Finance to recognise our support for the development of social housing in the UK,” he said.
“We have also successfully increased the scale, diversity and maturity of our funding to support our growth plans.
“Since January we have raised or refinanced over £2.3bn, including refinancing our £1.25bn AA rated CABS securitisation and refinancing our LABS facility including upsizing by £200m to £700m whilst we recently also priced our £349m inaugural second charge only RMBS.
“The UK’s economic outlook has become more uncertain as global supply chain disruption and increasing energy and non-energy inflation, intensified by the war in Ukraine, have led to a tightening of monetary policy and rising interest rates.
“Despite the economic uncertainty, with a multi-cycle track record, a clear purpose and strong diversified funding, Together remains well placed to help increasing numbers of customers realise their ambitions and to play our part in supporting the UK economy.”