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REG - Sancus Lending Group - Company Update and Board Changes

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RNS Number : 1627M  Sancus Lending Group Limited  10 January 2023

10 January 2023

 

Sancus Lending Group Limited

(the "Group" or the "Company")

Company Update and Board Changes

 

 

The Board of the Company today provides an update on the Group's ongoing
structured change programme and Board changes. The Executive team, supported
by the Board, continue to focus on returning the Company to profitability.
This includes measures to simplify the business, improve efficiency and
optimise use of resources.

 

Following the recent successful funding round, the Company has decided to
rationalise the number of offices from which it operates, from five to three:
London, Dublin and Jersey, with the closure of its office in Guernsey and the
decision to cease new business activities in Gibraltar. This will provide the
Group with consolidated centres reflecting its three core areas of geographic
focus: UK, Ireland and Offshore.

 

The Group Finance function, currently operating from Guernsey, will move to
Jersey in the first half of 2023. The Group will continue to participate in
lending opportunities in the Guernsey market.

 

In reviewing its operations in Gibraltar during 2022, the Company has not
identified sufficient quality lending opportunities to merit continued efforts
in the region.  Leaving the Gibraltar market will result in cost saving, risk
reduction and allow dedicated resources to focus on the Group's core
markets.  As a result, the Goodwill (£8.64 million), held by the Company
since the acquisition of Sancus Lending (Gibraltar) Limited ("Sancus
Gibraltar") in 2016, will consequently be written down to nil. In the year to
31 December 2021, Sancus Gibraltar generated revenues of £1.44m and profit
before tax of £941k (before group, finance and other charges), the majority
of this revenue relating to loans written before 2021.

 

Following the migration of the Group Finance function from Guernsey to Jersey,
Emma Stubbs, the Group's Chief Financial Officer, has decided to step down
from the Board and leave the Company. It is intended that Emma will remain
with the business until 31 March 2023 to effect an orderly handover. Emma
joined Sancus in 2013 and has played an important role in the planning of the
Company's turnaround strategy. The Board would like to thank Emma for her hard
work and commitment and wish her well in her future endeavours.

 

Following Emma's departure, Tracy Clarke will be appointed as the Group's
Interim Chief Financial Officer, for an initial period of 12 months.  Tracy,
who has been a non-executive Director of the Company since March 2022, is a
Fellow of the Institute of Chartered Accountants in England and Wales and
holds the CISI Investment Advice Diploma.  Tracy is currently Managing
Director of Carlton Management Services Limited ("Carlton"), a licensed Jersey
Trust Company business which provides administration and finance services to
clients including the Somerston Group (the Company's largest shareholder). It
is currently envisaged that Carlton will be appointed to augment and support
the development of the Group's finance function, including new technology
integrations for forecasting, performance and treasury management and
reporting. It is ultimately the intention of the Board to appoint a permanent
CFO in due course and intends to review these arrangements in 12 months.

 

The Company looks forward to 2023 with cautious optimism. The continued
retrenchment of banks and alternative lenders from development financing
provides attractive opportunities for the alternative lenders that can remain
active and with its recently successful corporate financing, Sancus is well
positioned to take advantage of these opportunities.

 

 

For further information, please contact:

 

Sancus Lending Group Limited

Rory Mepham

+44 (0)1481 708 280

 

Liberum Capital (Nominated Adviser and Corporate Broker)

Lauren Kettle

Chris Clarke

William King

+44 (0) 20 3100 2000

 

Instinctif Partners (PR Adviser)

Tim Linacre

Victoria Hayns

+44 (0)207 457 2020

 

Sanne Fund Services (Guernsey) Limited (Company Secretary)

Matt Falla

+44 (0)1481 755530

 

 

LEI: 213800S2XOO3YSEGCA26

 

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