Sancus Lending Group (LON: LEND), an AIM-listed alternative finance provider offering short-term property and bridging loans across the UK, Ireland and the Channel Islands, reported a £17.4m pre-tax loss for the six months to 30 June, against a £0.1m profit a year earlier. Of that, £14.0m is a non-cash impairment against its 50%-owned Hawk Channel Islands joint venture, Hawkbridge, rather than trading losses.
Shares opened at 0.95p in early trade today, down 5% from yesterday’s close of 1.00p, against a 52-week range of 0.30p to 1.80p. Volumes were thin at just over 275,000 shares, so the move looks like an initial reaction rather than a settled verdict.
Beneath the headline loss, trading was mixed. Revenue rose 36% to £13.1m and assets under management grew 11% to £339.1m, led by 21% growth in the UK loan book and 9% in Ireland. Yet the operating loss widened to £3.4m from £1.1m, as higher funding and liquidity costs and a credit-loss provision outpaced revenue growth. Charnley, in post since 10 July, said the loss “primarily reflects the impact of the geopolitical and macro-economic backdrop on activity levels and funding and liquidity costs.”
Ready to put what you’ve learned into practice?
Try IG’s platform with £10,000 in virtual funds and practise trading
without putting your own money at risk.
Try IG with a demo account →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Learn the markets with IG Academy
Build your knowledge with IG Academy educational content, then use a
demo account to practise what you’ve learned on the IG platform.
Explore IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
See how trading works before risking real money
IG’s demo gives you access to thousands of markets and £10,000 in
virtual funds, so you can explore the platform and test your ideas first.
Open an IG demo →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Turn trading theory into practical experience
Learn with IG Academy, explore charts and market tools, and practise
strategies in a simulated trading environment before going live.
Start practising with IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Ready to take your learning further?
IG combines market education, analysis and an established trading platform,
giving you the tools to keep learning as you develop your trading skills.
Discover IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
He added that the Channel Islands market has “different market dynamics and growth outlook” to the UK and Ireland, and confirmed Sancus has “commenced a strategic review of our Channel Islands lending activities, including the Hawk JV,” with a fuller update due alongside full-year results.
Chairman Steve Smith said the board “believes it is not appropriate to declare a dividend” for the period, with policy to be revisited once Sancus reaches sustainable profitability. The company is also issuing 15.5 million new shares to settle executive and long-term incentive plan entitlements, due to be admitted to trading around 18 September, adding to the share count shortly after the results.
