The culmination of two years of regulatory change may have dampened new buy-to-let purchases across the market during the first-half, but Charter Court Financial Services’ (CCFS) focus on complex and professional landlords sealed its outperformance. New buy-to-let lending was ahead 10 per cent on the prior year, pushing that business’s loan book up by more than a fifth to £3.9bn. That drove an increase in the group loan book of more than a quarter, in line with management’s medium-term target of at least 20 per cent.
The residential mortgage book declined almost a fifth on the end of 2017 after residual interests in two assets were sold, upon which the group recognised a gain of £36.4m. Excluding those sales, the loan book was up 13 per cent to £1.4bn. However, increased competition in the bridging finance market meant new loans were around a fifth lower than the same time last year at £131m.
The lender continued to diversity funding sources, with three mortgage securitisation transactions – two buy-to-let and one residential – raising £906m during the period, up on £597m the same time last year.
Analysts at Investec expect adjusted net tangible assets of 185p at the December 2018 year-end, up from 140p the same time the prior year.
| CHARTER COURT FINANCIAL SERVICES (CCFS) | ||||
| ORD PRICE: | 364.8p | MARKET VALUE: | £872m | |
| TOUCH: | 364.2-364.8p | 12-MONTH HIGH: | 364.8p | LOW: 228p |
| DIVIDEND YIELD: | 0.8% | PE RATIO: | 8 | |
| NET ASSET VALUE: | 170p | LEVERAGE: | 16.5 | |
| Half-year to 30 Jun | Total operating income (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2017* | 86 | 59.3 | 18.9 | 0.00 |
| 2018 | 125 | 93.1 | 29.7 | 2.80 |
| % change | +45 | +57 | +57 | - |
| Ex-div: | 30 Aug | |||
| Payment: | 04 Oct | |||
| *Prior to IPO | ||||
