Together delivers ‘robust’ second quarter performance
Cheadle specialist lender, Together Financial Services, said it delivered a “robust” second quarter, in the period ended December 31, 2022.
Interest receivable and other income came in at £133.6m, up from £95.3m in the same quarter a year ago, while pre-tax profits of £17.8m compared with £40.1m in the same period last year, primarily due to higher impairment charges.
Shareholder funds were £1.046bn, against £984.4m a year ago.
Gerald Grimes, group CEO designate, said: “Together delivered another robust performance in the period, against a backdrop of extreme macroeconomic uncertainty, growing the loan book to £5.9bn while controlling origination volumes, increasing rates and maintaining prudent LTVs.
“The group remained highly profitable and cash generative, and the successful launch of our £467m FABS warehouse facility in December added further strength and diversity to our funding.
“We continued to deliver our strategic change agenda during the quarter, making further incremental progress on delivering the right experience for our customers and creating a more agile, efficient, and scalable platform.
“We also rolled out new training programmes to support growth and performance for all of our colleagues and made good progress against our sustainability targets and measures.”
He added: “While inflation has started to show signs of trending lower and the pace of interest rate rises has slowed, some economists are forecasting the UK economy could enter recession during 2023, and this continued uncertainty may result in increasing numbers of people looking to specialist lenders for support.
“With a clear purpose, a proven and well-funded business model and a successful multi-cycle track record, we believe Together is well placed to help many more customers realise their ambitions.”
During the period average monthly lending was up 6.3% at £212.5m on the previous year, reflecting a controlled approach to originations.
The group net loan book increased to £5.9bn, up 33.3% on Q2 2022’s £4.4bn figure.
Together said the arrears profile remains benign, reflecting robust loan book quality.
