Trading Update and ZDP buyback programme

15 July 2022

Sancus Lending Group Limited

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

Trading Update and ZDP buyback programme

Trading Update

Sancus today announces an update on trading for the first six months to 30 June 2022.

The Group has been focussed on expanding in UK and Ireland over the last year and the Offshore business remains stable, with work being undertaken to return that business to growth. The Group is pleased to report that in the first six months of 2022 it has seen new loan facilities written of £87m compared to £83m* for the full year 2021. The impressive growth rate reflects a 62% increase in comparison to the six months to June 2021, when £53m of new loan facilities were written. These figures are in line with expectations. Management remain focused on the maintenance of robust institutional grade credit processes whilst continuing to deliver growth.

The Board is encouraged by the momentum, and expects that new loan facilities written will drive revenue growth in the second half of 2022; reflecting the lag in fee generation as the loan book grows.

The Group continues to ensure it has a diversified pool of funding lines to support the growth in new loan facilities, including institutional funding, co-funders and the loan note programme, and is optimistic about the future. The Group also continues to increase the proportion of its loan book funded off balance sheet and optimise its use of capital.

The Group's Interim Results for the period to 30 June 2022 (the "Interim Results") will be issued at the end of September 2022.

ZDP Buyback Programme

The Group is focussed on its long-term finance strategy, including the role holders of the Company's ZDP shares (the "ZDP Shares") are intended to play in this strategy - the Board recognises their support is key at this stage in the Group's development. The Company has had initial discussions with certain of the ZDP shareholders on the options available, including a potential re-financing, part repayment and/or extension of the ZDPs, bearing in mind the maturity date of 5 December 2022. While no formal decision has been made by the Board, any restructuring plan could involve the launch of a formal tender offer process, in due course, by way of a part repayment of the ZDP Shares. Alongside these considerations, the Company continues to review other options for a partial return of capital to ZDP shareholders, so to ensure it uses any excess capital in the best interest of all stakeholders.

The Company announces that it has appointed Liberum Capital to manage a ZDP share buyback programme today (the "Buyback Programme"), to purchase up to £0.5m of the ZDP Shares pursuant to the authority granted to the Directors by shareholders at the Group's AGM in May 2022. The Buyback Programme will continue until such time as the Company enters into a close period in respect of its Interim Results, expected to take place at the end of August, or if otherwise cancelled by the Company (if earlier).

In accordance with the resolution passed at the AGM, purchases made pursuant to the Buyback Programme must be a) at a maximum price (exclusive of expenses) paid per ZDP Share of 105% of the average of the middle market quotations (as derived from the Daily Official List) of the ZDP Shares for the five business days immediately preceding the date of purchase and b) at a minimum price paid per ZDP Share of £0.01.

The Company has 19,101,384 ZDP Shares in issue, of which 12,235,748 ZDP Shares are held in treasury. ZDP Shares purchased pursuant to the Buyback Programme will be held in treasury.

Shareholders should be aware that a purchase of ZDP Shares by the Company on any trading day may represent a significant proportion of the daily trading volume in the ZDP Shares and could exceed 25 per cent. of the average daily trading volume of the preceding 20 business days.

*Adjusted 2021 figure, previously reported loan facilities for full year 2021 was £80m.

This announcement contains inside information as defined in Article 7 of the EU Market Abuse Regulation No 596/2014 (as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018) and has been announced in accordance with the Company's obligations under Article 17 of that Regulation.

For further information, please contact:

Sancus Lending Group Limited

Rory Mepham

+44 (0)1481 708 280

Liberum Capital (Nominated Adviser and Corporate Broker)

Chris Clarke

Lauren Kettle

Edward Thomas

+44 (0) 20 3100 2190

Instinctif Partners (PR Advisor)

Tim Linacre

Victoria Hayns

+44 (0)207 457 2020

Sanne Fund Services (Guernsey) Limited (Company Secretary)

Matt Falla

Katrina Rowe

+44 (0)1481 755530

LEI: 213800S2XOO3YSEGCA26