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Montfort Capital Corp. ("Montfort" or the "Company") (TSXV: MONT,OTC:MONTF), today announced financial results for the six months ended June 30, 2025 . All figures are reported in Canadian dollars unless otherwise noted.
"We have made great strides over the past year in streamlining our operations and refocusing on those business units that are profitable, growing and operated from our Toronto office" said Ken Thomson , CEO of Montfort . "Our overhead costs have been significantly reduced and the loan portfolios of our continuing lines of business have grown over 17% in the first half of the year, driven primarily by Langhaus and Nuvo. We believe the substantial work of our restructuring plan is behind us and we're well positioned to resume growth."
FINANCIAL HIGHLIGHTS
| Financial Highlights | | Six months | | Six months |
| Revenue | $ | 1,838,136 | $ | 2,299,588 |
| Expenses | | 6,202,566 | | 5,055,538 |
| Net loss from continuing operations | | (4,281,310) | | (2,804,513) |
| Net income (loss) from discontinued operations | | 4,924,152 | | (2,592,792) |
| Basic and diluted loss per common share: | | | | |
| from continuing operations | | (0.05) | | (0.03) |
| from discontinued operations | | 0.06 | | 0.03 |
| | | As at June 30, 2025 | | As at December 31, 2024 |
| Loans receivable - net of allowance | $ | 222,069,855 | $ | 189,538,678 |
For the six months ended June 30, 2025 the Company reports the following highlights:
- Loans receivable net of allowance increased $32.5 million or 17.2% compared to the balance at December 31, 2024 , as loan growth occurred across all continuing lines of business - Langhaus, Nuvo, and Pivot.
- Total revenue decreased by $0.5 million or 20% compared to H1 2024, primarily reflecting lower transaction fee income generated by the Pivot business.
- Total expenses increased by $1.1 million or 23% compared to H1 2024, as a result of an increase in expected credit losses in H1 2025 of $2.3 million which was offset by a decrease in overhead expenses of $1.2 million as management's effort to improve operating efficiency has resulted in reduced staffing and other overhead costs.
- The net loss from continuing operations for the half was $4.3 million compared to a net loss of $2.8 million in H1 2024, mainly reflecting the savings in operating expenses, offset by an increase in expected credit loss.
- The net income from discontinued operations was $4.9 million , representing an increase of $7.5 million or 290% compared to H1 2024 loss of $2.6 million . This was driven by the gain on disposal of Brightpath of $8.7 million offset by operating losses of $3.8 million incurred prior to disposition.
This news release is qualified in its entirety by the Company's financial statements for the six months ended June 30, 2025 and the associated Management's Discussion & Analysis, which can be downloaded from the Company's profile on SEDAR+ at https://www.sedarplus.ca/
About Montfort Capital Corp.
Montfort builds and manages private credit portfolios that have focused investing strategies for the institutional and accredited investors markets. For further information, please visit www.montfortcapital.com .
The Company originates, underwrites and manages secured loans through the following operating divisions:
Continuing Operations
Langhaus provides insurance policy-backed lending solutions to high-net-worth individuals and entrepreneurs in Canada. Langhaus' loans are collateralized by the assignment of the borrower's whole life insurance policy, personal and/or corporate guarantees and, in some cases, other tangible collateral.
Nuvo partners with Canadian alternative asset managers and ultra high-net-worth individuals to provide revolving net asset value based loans (ie. 'NAV loans').
Pivot specializes in asset-based lending targeting SME borrowers in Canada . Sources of revenue include net interest income from loans receivable, origination fees and amendment fees. In addition, Pivot earns loan servicing fees and performance fee income for loan management services performed.
Discontinued Operations
The Brightpath business was sold on April 2, 2025 . Brightpath is a registered mortgage brokerage and mortgage administrator, administering a portfolio of mortgages secured by residential properties. As at December 31, 2024 , the assets and liabilities of Brightpath were classified as held for sale and the operating results are included under discontinued operations up to the date of sale.
The TIMIA business unit was sold on November 1, 2024 and its operating results are included in discontinued operations. TIMIA originated, underwrote and serviced private-market loans in the technology space. TIMIA offered revenue-based investment to fast growing, business-to-business recurring revenue software businesses in North America .
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Forward-Looking Information
Certain statements contained in this press release constitute "forward-looking information" and "forward-looking statements", collectively "forward looking statements". All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "designed", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These forward-looking statements include, but are not limited to: projected timing of profitability of the Company; growth of the Company's existing businesses; and the Company's ability to continue to operate as a going concern.
This forward-looking information is based on a number of material factors and assumptions including, but not limited to: stable interest rates and financing costs remaining consistent with current market conditions; no material adverse changes in general economic conditions in key markets; competitive positioning remaining stable in the Company's target markets; Montfort retaining key personnel responsible for client acquisition and relationship management; stability in the competitive landscape of the Company's businesses with no disruptive new market entrants; credit spreads in private lending markets remaining consistent with current market conditions; no significant changes in asset valuations that would impact collateral values; continued demand for private credit; maintenance of current underwriting standards and loan approval processes; no material changes in loan origination channels or referral networks; continued effectiveness of the Company's credit risk assessment methodologies; ability to maintain current loan servicing capabilities and operational efficiencies; ability to maintain relationships with key capital providers, co-lenders and financial partners; and availability of external financing at reasonable rates These assumptions should be considered carefully by readers.
The forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements. These risks and uncertainties include, but are not limited to: lower than expected revenue growth in the Company's core business segments; potential for increased competition that could compress profit margins; possibility of higher operating costs than forecasted; risk of economic downturn affecting demand for the Company's services; unforeseen regulatory changes impacting the Company's business model and/or cost structure; delays in realizing anticipated cost synergies or operational efficiencies; risk of market saturation limiting organic growth opportunities; failure to successfully execute planned expansion initiatives; possibility of increased competition in target markets; inability to attract or retain key talent needed for growth; technological changes that could disrupt existing business models; customer acquisition costs increasing beyond projected levels; and the Company being unable to continue as a going concern due to its inability to procure additional liquidity and / or financing on reasonable terms. We do not undertake to update any forward-looking information, except as, and to the extent required by, applicable securities laws.
Based on current available information, the Company believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that those expectations will prove to be correct. The forward-looking statements in this press release are expressly qualified by this statement, and readers are advised not to place undue reliance on the forward-looking statements.
SOURCE Montfort Capital Corp.
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