Together Financial Services reported a record loan book and higher profits for the year to June 30 as the specialist lender continued to expand despite a mixed outlook for the UK economy.
The Manchester-based group grew its loan book by 7.2% to £7.9 billion, while underlying profit before tax rose 7% to £216.1 million. Interest income climbed nearly 12% to £868.1 million, with net interest margin stable at 5.5%.
Arrears increased to 5.5% from 4.7% a year earlier, though the company said the trend flattened in the second half thanks to proactive collection strategies and lower borrowing costs after Bank of England rate reductions.
REFRESHED STRATEGY
Richard Rowntree (main picture), who took over as chief executive last November, said: “Together delivered another strong performance during the year with the loan book reaching a new high of £7.9bn, net interest margin remaining highly attractive at 5.5% and underlying profit before tax up 7% on last year.
“We continued to build on our past success to take the business to the next level, launching our refreshed strategy, progressing our lending system and data platform transformation programme into the build and test phase and strengthening and diversifying our Executive management team and Board.
“We also raised or refinanced over £5bn of funding facilities to support our long-term growth ambitions.”
CAUTIOUS OPTIMISM
He added: “Looking forward, the outlook for the UK economy is mixed, with expectations of further interest rate cuts offset by global economic uncertainty, continued trade disruption and a weaker jobs market.
“However, with changing working patterns, a rise in multiple incomes and other long-term structural trends supporting an increase in demand within our market, we remain cautiously optimistic and are well-positioned to continue to help customers realise their property ambitions, as we have for more than 50 years.”
CASH GENERATIVE
Operationally, the group advanced an average £263.6 million of loans per month, up 5.6% on the prior year, with a conservative weighted average loan-to-value of 60%.
Cash receipts rose strongly to £3.4 billion, compared with £2.7 billion in 2024.
The lender also refinanced or raised more than £5 billion across nine funding transactions to support future growth and strengthened its leadership team with several senior appointments.
The company said it remains “highly profitable and cash generative”, with an underlying return on equity of 14.1%.
