Together defies economic gloom with £47m quarterly profit
Cheadle-based property lender Together has announced quarterly profits of more than £47million in its latest financial results.
The finance company grew its loan book to £6.6billion in the three month period to September 30th, it announced today (Thursday, November 23rd) despite continued market volatility.
Together, which provides personal and commercial finance and employs more than 750 colleges across the UK, said originations saw a slight increase on the previous quarter. The finance group’s average monthly lending was £223.5m – up 2.3% on the quarter to June 30th.
Payment arrears remained “below pre-pandemic levels” although in line with the wider industry the group is seeing a gradual increase and will continue to monitor this carefully, a Together spokesperson said.
The group remains “highly profitable and cash generative”, with underlying profit before tax (UPBT) of £47.3m, an increase of 36% on the previous quarters.
However, this represented a 24% fall on the same period in the previous year, primarily due to non-cash accounting adjustments across the two periods.
The group continued to further strengthen and diversify its funding, raising or refinancing about £1bn of facilities in the three months and ending the quarter with £1.2bn of funding headroom, leaving it “well placed for future growth.”
Gerald Grimes, Group CEO Designate of Together, said:
“Together delivered another strong and sustainable performance in the quarter to 30th September, growing the loan book to £6.6bn with low Loan-to-Value (LTVs) and headline arrears, while remaining highly profitable and cash generative.
The UK economy continues to face headwinds, with GDP growth forecast to remain subdued as interest rates remain higher well into 2024. Against this backdrop, many more customers may find themselves underserved and look to specialist lenders for support.
With a clear purpose, a proven and well-funded business model and a successful multicycle track record, Together will be there to help customers solve problems and realise opportunities, as we have been for the last 50 years.”