REG - Sancus Lending Group - Trading Update and Additional Funding Facility

Sancus LendingAnnouncement

14/08/2025 07:00

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RNS Number : 2541V  Sancus Lending Group Limited  14 August 2025

14 August 2025

 

Sancus Lending Group Limited

("Sancus" the "Company" or the "Group")

 

Trading Update

and

Additional Funding Facility

 

Sancus Lending Group Limited (AIM: LEND) provides an update on trading for the
6 months ended 30 June 2025 (the "Period"). The Company also announces that it
has entered into an additional funding facility to support the planned growth
in its property backed lending book.

 

Trading Update

 

In the Period, the Group's revenue increased by 29 per cent. to £9.7 million
(2024: £7.5 million). During the Period, the Company wrote new loan
facilities of £78.6 million, an increase of 54 per cent. (2024: £51.0
million).  These increases reflect increased activity levels across the Group
with the UK and Irish businesses, in particular, delivering growth.  As at 30
June 2025, the Group's assets under management of £259 million had increased
by 9 per cent. (31 December 2024: £238 million).

 

Overall, the Company currently estimates that it will report a profit before
tax of approximately £0.1 million for the Period (2024: loss before tax of
£0.6 million).  This improved operating result reflects the benefits of the
organic growth delivered in the Period, disciplined credit management and
stable credit quality and a gain arising from the repurchase of a portion of
the Group's ZDP shares during the Period.

 

Market Context

The UK & Channel Island property market continues to operate under
challenging conditions as interest rates remain stubbornly high, which has
placed pressure on borrower affordability and dampened activity levels in our
core residential property lending segment.

 

In contrast, the Irish market is benefitting from a more supportive
macroeconomic environment, with lower base rates and resilient demand for
property-backed finance. The performance of the Irish business provides the
Group with valuable geographic diversification, helping to offset the impact
of more difficult trading conditions in the UK and Channel Islands.

 

Outlook

 

The Group remains focused on achieving sustainable run-rate profitability and
has entered the second half of the year with an encouraging new business
pipeline. The recently secured complementary funding facility positions the
Group well to capitalise on selective growth opportunities across its core
markets.

 

The Company expects to announce its unaudited interim results for the 6 months
ended 30 June 2025 in early September 2025.

 

New £20 million Paragon Bank Facility

 

The Group is pleased to announce that it has entered into agreements with
Paragon Bank plc for the provision of a £20 million committed funding
facility (the "Paragon Facility").  The Paragon Facility, which has a 3 year
term, will increase the Group's capacity to grow its property backed lending
book in England, Wales and Scotland.

 

The junior capital required for the Paragon Facility will be provided under
the Somerston Junior Funding Commitment of up to £10 million, details of
which were announced by the Company on 30 January 2025. In the short-term,
the Group expects to draw up to £2.5 million under the Somerston Junior
Funding Commitment to finance the junior capital requirements of the Paragon
Facility, leaving £3.1 million undrawn.

 

This new facility complements the Group's recently extended and upsized senior
secured facility with Pollen Street Capital, which was increased from £125
million up to £200 million and extended to June 2030. Together, these funding
arrangements significantly strengthen the Group's lending capacity and provide
a diversified platform to support future growth across its core markets.

 

Capitalised terms not defined in this announcement have the meanings given to
them in the Company's announcement of 30 January 2025.

 

 

 

For further information, please contact:

 

 Sancus Lending Group Limited                           +44 (0)1481 708280

 Rory Mepham, Chief Executive Officer

 Keith Lawrence, Chief Financial Officer

 Shore Capital (Nominated Adviser and Broker)           +44 (0)20 7408 4050

 Tom Griffiths / George Payne (Corporate Advisory)

 Guy Wiehahn (Corporate Broking)

 Instinctif Partners (PR Adviser)                       +44 (0)20 7457 2020

 Hannah Scott

 Galyna Kulachek

 Apex Fund and Corporate Services (Guernsey) Limited    +44 (0)20 3530 3696

 Nikita Pingale

 Aoife Bennett

 

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