Together announces record year as annual lending tops 1bn pounds
OREANDA-NEWS. Together, the specialist lender, has today announced record results for the year ending 30 June 2016, with profit before tax at a record £90.3m, an increase of 20.8% on the previous year.
Founded in 1974, Together provides finance to niche markets through an extensive distribution network, offering short-term finance, auction finance, residential, commercial and buy-to-let mortgages, and secured loans.
Key highlights include:
§ Full year profit before tax (PBT) increased by 20.8% to a record £90.3m for the year to 30 June 2016 (2015: £74.8m)
§ Loan book increased by 26.5% to £1,800.7m at 30 June 2016 (2015: £1,423.5m)
§ Launch of Together brand in September 2015
§ Strengthening of senior management with key hires
§ Separation of retail and commercial activities under a new corporate governance structure, with the different divisions managed independently
Annual lending for the year topped the £1bn mark for the first time, up 39.5% on prior year, whilst the loan book grew by £377.2m, currently standing at more than £1.8bn; an increase of 26.5%.
The results showed the consistent low loan-to-value across the group, with the weighted average now standing at 52.6%, highlighting the group's prudent and individual approach to lending.
Mike McTighe, group chairman at Together, said: "These record results affirm the positive position the business is in. Trading has remained strong; both in terms of financial performance and new origination levels, with credit quality remaining robust. We have also made good progress against our strategic priorities in governance, including a number of key senior management appointments, IT and reporting.
"We believe we have a strong competitive advantage and are excited about the future. We are confident about the opportunities in the specialist finance sector and we have the financial capability to support our ambitious growth plans."
As it looks to the future, Together has confirmed that minority shareholder, Equistone, is intending to exit the business, with a preferred option identified whereby the Moser family would increase their current majority interest to become the sole shareholder, other than a continued small non-voting shareholding interest held by other members of the senior management team.
The business, with over 42 years of successful trading, has established itself as a serious contender in the specialist lending market, thanks to its common sense approach to lending, and is reaping the benefits of the growing demand for alternative finance.
As a specialist lender to niche markets through an extensive distribution network, Together offers short-term finance, auction finance, residential, commercial and buy-to-let mortgages and secured loans.