City funding lines help ThinCats narrow losses

ThinCats has narrowed its pre-tax losses, because it makes progress in its transition to a steadiness sheet lender.

The choice enterprise lender reported a pre-tax lack of £5.1m for the 12 months to 30 June 2023, in keeping with paperwork filed with Corporations Home.

This compares to a pre-tax lack of practically £6m within the 12 months to June 2022.

Turnover for the 12-month interval to 30 June 2023 was £42m, up from £33m the earlier 12 months. ThinCats attributed this to “continued progress within the group’s enterprise mannequin from an asset originator and supervisor to a steadiness sheet mannequin, supported by the funding strains supplied by InterVest, Barclays and Citibank.”

Learn extra: ThinCats secures £696m funding line with help from British Enterprise Financial institution

Because of this, complete steadiness sheet property underneath administration grew from £356m to £432m over the previous 12 months.

Mortgage origination elevated by 17 per cent year-on-year to £357m.

ThinCats mentioned that the group “has continued to make glorious progress during the last 12 months in its mission to assist extra mid-sized UK SMEs entry the finance they should develop.”

Learn extra: Fintex Capital gives further mezzanine finance to ThinCats

It added: “Key drivers of the sturdy monetary outcomes have been important follow-on lending to current debtors, deepening relationships with regional enterprise finance advisers and a rising presence in lower-mid market non-public fairness transactions and healthcare lending.”

Wanting forward, ThinCats mentioned it’ll plan to proceed to develop and diversify its lending operations, and can proceed to supply further funding to strengthen its capability to develop its property underneath administration.

ThinCats’ outcomes come after current analysis revealed that it was the highest various lender for M&A transactions in 2023 and the biggest lender total in London.

Experian Market IQ’s 2023 M&A report discovered that ThinCats funded 41 offers final 12 months, coming second behind HSBC which funded 56 offers.

ThinCats was the main debt supplier to the London M&A market with 12 offers.