Record profits at equity release group as market recovers
Equity release broker Age Partnership Group and its sister company, Pure Retirement, which provides home loan mortgage contracts in the equity release market, have posted combined record profits of £15.6m EBITDA for the year ending 31 December 2021.
During the financial year Leeds-based Age Partnership produced a £2.6m profit while Pure Retirement built on its £10.7m profit the previous year by posting a £13m profit in 2021.
The equity release market was substantially impacted by COVID-19 in 2020 and as the Group entered 2021 the Government announced the third national lockdown on 6 January, with the lifting of restrictions not fully achieved until mid-July, which again meant demand for all the Group’s services and products remained subdued.
With confidence returning to the market following the roll out of the vaccination programme and the economy reopening, Age Partnership embarked on a significant investment programme to benefit from improving market conditions.
Pure also increased its headcount to 212 employees and continued to invest in its servicing and technical capability to continue to support third party relationships helping establish itself as the ‘provider of choice’ for those looking to outsource equity release origination and servicing.
The company had around £3.3bn of loans under administration at the year-end which has subsequently grown to over £4bn.
The chairman of both Age Partnership and Pure Retirement, Andrew Thirkill said: “The later life lending market grew by 24% in 2021, reflecting recovery from Covid-19 disruption and increasing market demand with more people than ever wishing to realise part of the equity in their homes to improve their own lifestyle and those of their families.
“To meet the increased demand, we are supported by an exceptional team of 650 people across the two companies led by Steve Auckland at Age Partnership and Paul Carter at Pure Retirement.”
The company also confirmed that trading for the first half of the year has been robust, and the full year 2022 outturn is again expected to be materially ahead of 2021.