Together reveals highly profitable first quarter

Cheadle based lender, Together, has revealed its first quarter results for the three months to the end of September, announcing profits before tax of £34.7 million.

The specialist non-bank lender has also seen its loan book grow further to £5.7 billion, with low levels of arrears, an increase of £1.5 billion since last year, £0.5 billion on the previous quarter.

After achieving record monthly loan originations earlier this year, Together has maintained its strong performance, lending on average £289.7 million each month.

Together CEO Designate said of the lender’s first quarter results:

“Together delivered another strong performance in the quarter to 30 September, growing the loan book to £5.7bn while maintaining very low LTVs and arrears. The Group also remained highly profitable and cash generative, with underlying profit before tax of £34.7m and cash receipts of £541.8m.

“We continue to shape our business for the future, with a focus on optimising our distribution strategies, maintaining lending quality and sustainable pricing, and supporting our customers through this challenging economic climate. During the quarter we raised or refinanced over £800m to further strengthen and diversify our funding, leaving us with significant facility headroom to support our growth plans. We also made good progress with our sustainability agenda, achieving silver accreditation from Investors in People 18 months ahead of our plan, maintaining excellent customer reviews and improving our car fleet to 64% electric or hybrid.

“The UK’s economic outlook has become increasingly uncertain with high levels of inflation and rising interest rates causing economists to forecast a prolonged recession. Against this backdrop, many more customers may find themselves underserved by mainstream lenders and look to specialists to help them to solve problems and realise opportunities. With a clear purpose, a multi-cycle track record, our transformation programmes well underway and strong diversified funding base, we believe Together remains well placed to deliver on our strategy, to help increasing numbers of underserved customers realise their ambitions and to play our part in supporting the UK economy.”