The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as amended by The Market Abuse (Amendment) (EU Exit) Regulations 2019. The person responsible for making this announcement on behalf of the Company is Rory Mepham.

 

 

Sancus Lending Group Limited

 

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

 

Interim Results for the six month period ended 30 June 2025

 

4 September 2025

 

 

HIGHLIGHTS

 

Rory Mepham, Chief Executive Officer of Sancus Lending Group Limited, commented:

 

"The Group has had an encouraging start to 2025 in what remains, especially in the UK and Channel Islands, a somewhat challenging market environment.  In the first half of the year our residential lending businesses in the UK and Ireland, along with our Channel Islands property lending joint venture, have all made further progress in strengthening their market positions and operating platforms.  This allowed us to achieve a 9% increase in Assets Under Management ("AUM") to £258.8m (31 December 2024: £237.6m; 30 June 2024: £209m) and deliver Group revenue of £9.7m, a 29% increase on revenue of £7.5m in H1 2024.  We have reported a profit before tax of £0.1m compared to a loss before tax of £(0.6m) in H1 2024, supported by a gain of £1.0m from the buy-back of ZDP shares.  We know that we need to deliver sustained operating profitability.  Our recently strengthened teams, new business pipeline and enhanced funding diversity gives me confidence that we are on track to achieve this ambition."

 

 

FINANCIAL HIGHLIGHTS

 

·           Group revenue increased 29% to £9.7m (H1 2024: £7.5m).

·           Profit before tax of £0.1m compared to a loss before tax of £(0.6m) in H1 2024.

·           New loan facilities written increased 64% to £84.4m (H1 2024: £51.3m).

·           AUM increased 9% to £258.8m as at 30 June 2025 from £237.6m as at 31 December 2024 (30 June 2024: £209m).

 

 

STRATEGIC AND OPERATING HIGHLIGHTS

 

·           Achievement of £0.1m profit before tax, reflecting improved operating performance and also supported by £1.0m of gains from the buy-back of £1.4m of ZDP shares in H1 2025.

 

·           Good progress in strengthening operating platforms, including further deepening of UK and Irish teams. 

o    UK AUM increased 14% to £95.6m (31 December 2024: £84.0m; 30 June 2024: £75.8m) with the business writing new facilities of £34.4m (H1 2024: £27.8m).

o    Irish AUM increased 29% to £61.7m (31 December 2024: £47.8m; 30 June 2024: £39.2m) with the business writing new facilities of £25.4m (H1 2024: £14.7m).

o    Channel Islands AUM decreased slightly to £101.6m (31 December 2024: £105.8m; 30 June 2024: £93.9m) reflecting positive momentum in winding down the legacy Sancus Jersey loan book, with the business also writing £24.6m of new facilities within the joint venture with Hawk ("JV")(H1 2024: £8.8m).

 

·           Further diversification and strengthening of the Group's funding sources:

o    Agreement of revised terms for the Company's funding facility with Pollen Street Capital with the facility being increased to £200m and extended to June 2030.  We announced in August 2025 that we have entered into a 3 year £20m committed facility with Paragon Bank plc to increase our capacity to grow our lending book in England, Wales and Scotland.

o    Continued growth of our private wealth and asset management joint venture, Amberton, helping support diversification of the Group's funding.  As at 30 June 2025 Amberton Loan Note AUM were £60.9m, a 46% increase on Loan Note AUM of £41.7m as at 31 December 2024.

 

·           Further strengthening of the Group's capital position and flexibility:

o    Repurchase of £1.4m of ZDP shares and adjustment to the terms of the remaining ZDP shares in issue to extend their maturity date to 5 December 2030 and, from 24 June 2025, ceasing the accrual of further interest on these shares.

o    The Group also received the necessary approval to amend its corporate bonds to include a payment-in-kind interest option, enabling bondholders to receive rolled-up interest payable at maturity at an annual rate of 8.5% instead of the previous 8% quarterly cash payments.

o    Provision of a £10m junior funding commitment by Somerston, the Group's largest shareholder, to support growth in the Group's loan financing facilities.  As at 30 June 2025, £4.4m had been drawn down under this commitment.

 

 

For further information, please contact:

 

 

Sancus Lending Group Limited Rory Mepham Keith Lawrence	+44 (0)1481 708 280
Shore Capital (Nominated Adviser and Broker) Tom Griffiths / George Payne (Corporate Advisory) Guy Wiehahn (Corporate Broking)	+44 (0)20 7408 4050
Instinctif Partners (PR Adviser) Hannah Scott Galyna Kulachek	+44 (0)20 7457 2020
Apex Group Ltd (Company Secretary) Nikita Pingale Aoife Bennett	+44 (0)20 3530 3696

 

 

 

CHAIRMAN'S STATEMENT

 

BUSINESS PERFORMANCE AND OUTLOOK

 

The Group has had an encouraging start to 2025 against an economic backdrop that remains uncertain. The £0.1m profit before tax compares to a loss before tax of £(0.6m) in H1 2024 and was supported by a gain of c. £1.0m on the buy-back of £1.4m of ZDP shares. The 64% increase in the volume of new facilities written of £84.4m (H1 2024: £51.3m), along with the 9% increase in the Group's AUM to £258.8m (31 December 2024: £237.6m) and the Group's encouraging new business pipeline gives the Board confidence that the Group is on track to deliver sustained operating profitability.

 

 

CAPITAL AND FUNDING

 

The Group has successfully taken more steps to diversify its funding and strengthen its capital position. 

 

We have renegotiated the facility we have with funds managed by Pollen Street Capital, increasing the size of the facility to £200m and extending its maturity to June 2030.  This, along with the continued growth in the Loan Note Programme managed by our private wealth and asset management joint venture (Amberton), will help support further growth in our AUM.  The provision of a £10m junior funding commitment by Somerston, the Group's largest shareholder, will also help support growth in the Group's loan financing facilities. 

 

Our capital position was also strengthened by the repurchase of £1.4m of ZDP shares and adjustments to the terms of the remaining ZDP shares in issue to extend their maturity date to 5 December 2030 and, from 24 June 2025, cease the accrual of further interest on these shares.

 

 

DIVIDEND AND SHAREHOLDERS

 

It is the Board's intention to reinvest surplus resources for growth. As such, the Group does not intend to declare a dividend for the half year period to 30 June 2025. The dividend policy will be revisited when the Company starts to generate capital. In the short term, that capital generation will be deployed into scaling the business.

 

On behalf of the Board, I would like to thank all shareholders for their continuing support and patience and for the efforts of the management and employees.

 

As I noted in the Chairman's statement in the 2024 annual report, we remain cautious about the continuing challenges ahead. I firmly believe that we have the right strategy, systems and personnel to put the business onto a stronger footing and return to profitability and I look forward to reporting more positive developments in the coming periods.

 

 

 

Steve Smith

Chairman

3 September 2025

 

 

 

CHIEF EXECUTIVE OFFICER'S REVIEW

 

OVERVIEW

 

The first half of 2025 has been one of contrasts for Sancus Lending Group. While we have delivered encouraging financial and operational progress the environment in which we operate - particularly in the UK - has been far from easy.

 

Confidence across the UK economy remains fragile. Persistent uncertainty, coupled with a broadly negative sentiment in the business and consumer sectors, continued to hold back activity levels in some areas of the lending market. This has created a challenging backdrop for our UK operations. That said, there are some early signs that the downward trajectory of interest rates in the UK could start to stimulate greater momentum in the residential market during the second half of the year and beyond. If this trend continues, we believe it will lead to more positive lending conditions, though we will remain disciplined in our underwriting and selective in our growth.

 

By contrast, our Irish business has performed strongly in H1 2025 where the market appears to be benefitting from its position in the interest rate cycle, with sentiment and transaction volumes improving. This favourable environment supported a 29% increase in Irish AUM and a 73% increase in new facilities written compared with H1 2024. It is a clear demonstration of how differing macroeconomic dynamics can influence market performance.

 

Despite the UK headwinds, we grew Group AUM by 9% to £258.8m and increased revenue by 29% to £9.7m. Loan book origination was particularly strong, with £84.4m of new facilities written in the first half, up 64% on H1 2024. Our disciplined approach has allowed us to deliver a profit before tax of £0.1m, a notable turnaround from the £0.6m loss in the prior period, also helped by a gain from the ZDP share buy-back.

 

OUR STRATEGY

 

We provide an update below against the strategic pillars set out in our 2024 Annual Report:

 

•	Focussing on Revenue Growth o  Revenue rose by 29% to £9.7m compared to £7.5m in H1 2024. This increase reflects fee income growth, and the benefits of AUM growth across most of the business. o  UK AUM increased 14% to £95.6m (31 December 2024: £84.0m; 30 June 2024: £75.8m) with the business writing new facilities of £34.4m (H1 2024: £27.8m). o  Irish AUM increased 29% to £61.7m (31 December 2024: £47.8m; 30 June 2024: £39.2m) with the business writing new facilities of £25.4m (H1 2024: £14.7m). o  Channel Islands AUM decreased slightly to £101.6m (31 December 2024: £105.8m; 30 June 2024: £93.9m) with the business writing new facilities of £24.6m (H1 2024: £8.9m).
•	Achieving operating and cost efficiency o  Our reported operating expenses were £3.0m versus £2.8m in H1 2024.  This increase primarily reflects the cost of recruiting additional staff to support planned business growth, especially in the UK.  We continue to take steps to improve our use of technology, including AI, to drive greater efficiency.
•	Become a capital efficient business o  We continued to make progress in diversifying our sources of funding. As at 30 June 2025, the Loan Note programme funding managed via the Amberton joint-venture was £60.9m, 46% higher than the balance as at 31 December 2024 (£41.7m). The £25m Morton Family facility which was agreed as part of the joint venture with Hawk Lending Limited is now live.  Both the Loan Note programme and the Morton Family facility have interest rates lower than our institutional funding lines. o  During the period we also successfully renewed the facility with Pollen Street Capital, increasing its size to £200m and extending its maturity to June 2030 whilst also reducing the cost of funds.  As at 30 June 2025 £113.9m of our loans were financed by this facility (31 December 2024: £90m).  We announced in August 2025 that we have entered into a 3 year £20m committed facility with Paragon Bank plc to increase our capacity to grow our lending book in England, Wales and Scotland.

 

AUM, pro-forma for the joint venture with Hawk Lending, increased by 9% from £237.6m as at 31 December 2024 to £258.8m as at 30 June 2025.

 

 

FINANCIAL SUMMARY

 

H1 2025 profit before tax was £0.1m versus a loss before tax of £(0.6m) in H1 2024. In addition to the revenue growth outlined above, this reflects:

 

○	Operating expenses of £3.0m versus £2.8m in H1 2024, primarily reflecting the costs of recruiting additional staff to support planned business growth, especially in the UK.
○	Group borrowing costs of £1.2m remaining flat from £1.2m in H1 2024 following the purchase of 1.2m ZDP shares in June 2025. This purchase of ZDP shares also resulted in an accounting gain of £1.0m (recorded within "Other net gains").
○	£0.2m reduction in expected credit losses (versus a £0.5m credit in H1 2024), reflecting our continued focus on disciplined credit risk management.
○	Our share of the profit from our joint venture with Hawk Lending was £0.2m (H1 2024: loss £0.3m).

 

ESG

 

At Sancus, we are committed to taking Environmental, Social and Governance ("ESG") factors seriously. We recognise our responsibility to incorporate sustainability throughout the operations of our business, to be custodians of the environment and to practise good stewardship of our stakeholders' interests. 

 

Alongside the publication of our 2024 annual report and accounts, we published our second Environmental, Social, and Governance report, marking the start of our journey towards greater transparency and sustainability. The report highlights our progress and achievements in the areas of environmental protection, social responsibility and governance, as well as the challenges and opportunities that we face.

 

OUTLOOK

 

We continue to believe there are grounds for optimism and that with our strategic focus and progress the long-term profitable growth potential for our business is clear. Whilst the operating environment was somewhat uncertain in H1 2025 we are cautiously optimistic having entered H2 2025.

 

 

Rory Mepham

Chief Executive Officer

3 September 2025

 

 

RISKS, UNCERTAINTIES AND RESPONSIBILITY STATEMENT

 

Risks and uncertainties

 

There are a number of potential risks and uncertainties which could have a material impact on the Group's performance over the remainder of the financial year. These include, but are not limited to, Capital and liquidity risk, Regulatory and compliance risk, Market risk, Credit risk with respect to the loan book (primarily bridging loans and, increasingly, development loans), Operational risk and the execution of Sancus strategy. These risks remain unchanged from the year ended 31 December 2024 and are not expected to change in the 6 months to the end of the 2025 financial year. Further details on these risks and uncertainties can be found in the 2024 Annual Report.

 

Responsibility statement

 

The Directors confirm that to the best of their knowledge:

 

·      The Interim Report has been prepared in accordance with the AIM rules for Companies;

 

·      This financial information has been prepared in accordance with IAS 34 as adopted by the UK;

 

 

 

Approved and signed on behalf of the Board of Directors

3 September 2025

 

 

INDEPENDENT REVIEW REPORT ON INTERIM FINANCIAL INFORMATION

 

Conclusion

 

We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2025 which comprise the condensed consolidated statement of comprehensive income, the condensed consolidated statement of financial position, the condensed consolidated statement of changes in shareholders' equity, the condensed consolidated statement of cash flows and related Notes 1 to 21.

 

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2025 is not prepared, in all material respects, in accordance with UK adopted International Accounting Standard 34 and the AIM Rules of the London Stock Exchange.

 

Basis of Conclusion

 

We conducted our review in accordance with International Standard on Review Engagements (UK) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

 

As disclosed in note 2, the annual financial statements of the group are prepared in accordance with UK adopted International Accounting Standards. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with UK adopted International Accounting Standard 34, 'Interim Financial Reporting'.

 

Conclusions Relating to Going Concern

 

Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis of Conclusion section of this report, nothing has come to our attention to suggest that management have inappropriately adopted the going concern basis of accounting or that management have identified material uncertainties relating to going concern that are not appropriately disclosed.

 

This conclusion is based on the review procedures performed in accordance with this ISRE, however future events or conditions may cause the entity to cease to continue as a going concern.

 

Responsibilities of directors

 

The directors are responsible for preparing the half-yearly financial report in accordance with the AIM Rules for Companies of the London Stock Exchange.

 

In preparing the half-yearly financial report, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

 

Auditor's Responsibilities for the review of the financial information

 

In reviewing the half-yearly report, we are responsible for expressing to the Company a conclusion on the condensed set of financial statement in the half-yearly financial report. Our conclusion, including our Conclusions Relating to Going Concern, are based on procedures that are less extensive than audit procedures, as described in the Basis for Conclusion paragraph of this report.

 

Use of our report

 

This report is made solely to the Company in accordance with International Standard on Review Engagements (UK) 2410 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Financial Reporting Council for use in the United Kingdom. Our work has been undertaken so that we might state to the Company those matters we are required to state to them in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our review work, for this report, or for the conclusions we have formed.

 

 

Moore Kingston Smith LLP

9 Appold Street,

London,

EC2A 2AP

 

3 September 2025

 

 

 

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited)

 

 

	Notes	Period ended	Period ended
		30 June 2025 (unaudited)   £'000	30 June 2024 (unaudited)   £'000
Revenue	4	9,683	7,499
Cost of sales	5	(6,816)	(5,445)
Gross profit		2,867	2,054
Operating expenses	6	(3,002)	(2,846)
Group borrowing costs	7	(1,159)	(1,182)
Changes in expected credit losses	19	232	466
Operating loss		(1,062)	(1,508)
Other net gains	8	1,004	1,158
Share of net profit / (loss) of joint ventures accounted for using the equity method	11	192	(262)
Profit / (loss) for the period before tax		134	(612)
Income tax expense		(7)	(35)
Profit / (loss) for the period after tax		127	(647)
Items that may be reclassified subsequently to profit and loss
Foreign exchange arising on consolidation		90	(30)
Other comprehensive income / (loss) for the period after tax		90	(30)
Total comprehensive income / (loss) for the period		217	(677)
Basic earnings per share	9	0.04p	(0.12)p
Diluted earnings per share		0.04p	(0.12)p

 

 

The accompanying Notes in the 'Notes to the Condensed Interim Financial Statements' section form an integral part of these financial statements.

 

 

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Unaudited)

 

		30 June 2025 (unaudited)	31 December 2024 (audited)
ASSETS	Notes	£'000	£'000
Non-current assets
Property, plant and equipment	10	662	473
Other intangible assets	12	-	-
Sancus loans and loan equivalents	19	13,570	7,373
FinTech Ventures investments	19	-	-
Investments in equity-accounted joint ventures and associates	11	14,571	14,379
Other investments	13	100	100
Total non-current assets		28,903	22,325
Current assets
Sancus loans and loan equivalents	19	101,793	85,331
Trade and other receivables	14	14,934	11,937
Cash and cash equivalents		11,248	2,529
Total current assets		127,975	99,797
Total assets		156,878	122,122
EQUITY
Share capital	15	-	-
Share premium	15	118,340	118,340
Treasury shares	15	(1,172)	(1,172)
Other reserves		(119,012)	(119,229)
Total Equity		(1,844)	(2,061)
LIABILITIES
Non-current liabilities
Borrowings		154,822	121,158
Lease liabilities		476	423
Total non-current liabilities	16	155,298	121,581
Current liabilities
Trade and other payables		1,472	1,296
Hedging contracts		26	2
Tax liabilities		7	10
Lease liabilities		91	20
Provisions		-	11
Interest payable		1,828	1,263
Total current liabilities	16	3,424	2,602
Total liabilities		158,722	124,183
Total equity and liabilities		156,878	122,122

 

 

The financial statements were approved by the Board of Directors on 3 September 2025 and were signed on its behalf by:

 

Director: John Whittle

 

 

The accompanying Notes in the 'Notes to the Condensed Interim Financial Statements' section form an integral part of these financial statements.

 

 

 

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited)

 

 

			Share  Premium	Treasury Shares	Warrants Outstanding	Foreign Exchange Reserve	Retained Earnings/ (Losses)	207BTotal 208BEquity
			0B£'000	1B£'000	2B£'000	3B£'000	4B£'000	£'000
Balance at 31 December 2024 (audited)			118,340	(1,172)	-	(70)	(119,159)	(2,061)
Total comprehensive income for the period			10B-	11B-	12B-	13B90	14B127	217
Balance at 30 June 2025 (unaudited)			15B118,340	16B(1,172)	17B-	19B                                                                                                                                                                        20	19B(119,032)	(1,844)
Balance at 31 December 2023 (audited)			118,340	(1,172)	-	15	(119,159)	(1,976)
Total comprehensive loss for the period			10B-	11B-	12B-	13B(30)	14B(647)	(677)
Balance at 30 June 2024 (unaudited)			15B118,340	16B(1,172)	17B-	19B                                                                                                                                                                     (15)	19B(119,806)	(2,653)

 

 

The accompanying Notes in the 'Notes to the Condensed Interim Financial Statements' section form an integral part of these financial statements.

 

 

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

 

		Period ended	Period ended
		30 June 2025 (unaudited)	30 June 2024 (unaudited)
	Notes	£'000	£'000
Cash outflow from operations, excluding loan movements	17	(2,194)	(3,175)
(Increase) / decrease in Sancus loans		(376)	126
Increase in Sancus Loans Limited loans		(22,283)	(8,862)
Net cash outflow from operating activities		(24,853)	(11,911)
Cash outflow from investing activities
Investment in joint ventures	11	(250)	(427)
Property, plant and equipment and other intangibles acquired	10	(89)	(18)
Net cash outflow from investing activities		(339)	(445)
Cash inflows from financing activities
Drawdown of Pollen facility	17	29,574	10,000
Issue of preference shares	17	2,500	5,000
Issue of bonds	17	3,289	-
Capital element of lease payments	17	(36)	(108)
Debt issue costs	17	(116)	-
Purchase of ZDPs	17	(1,390)	(1,501)
Net cash inflow from financing activities		33,821	13,391
Effects of foreign exchange		90	(30)
Net increase in cash and cash equivalents		8,719	1,005
Cash and cash equivalents at beginning of period		2,529	4,990
Cash and cash equivalents at end of period		11,248	5,995

 

The accompanying Notes in the 'Notes to the Condensed Interim Financial Statements' section form an integral part of these financial statements.

 

 

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS  (Unaudited)

 

1.      GENERAL INFORMATION

 

Sancus Lending Group Limited (the "Company"), together with its subsidiaries, (the "Group") was incorporated, and domiciled in Guernsey, Channel Islands, as a company limited by shares and with limited liability, on 9 June 2005 in accordance with The Companies (Guernsey) Law, 1994 (since superseded by The Companies (Guernsey) Law, 2008). Until 25 March 2015, the Company was an Authorised Closed-ended Investment Scheme and was subject to the Authorised Closed-ended Investment Scheme Rules 2008 issued by the Guernsey Financial Services Commission ("GFSC"). On 25 March 2015, the Company was registered with the GFSC as a Non-Regulated Financial Services Business ("NRFSB"), at which point the Company's authorised fund status was revoked. The Company's Ordinary Shares were admitted to trading on the AIM market of the London Stock Exchange on 5 August 2005 and its issued zero dividend preference shares were listed and traded on the Standard listing Segment of the main market of the London Stock Exchange with effect from 5 October 2015. The Company changed where its business is managed and controlled, from Guernsey to Jersey, effective 1 April 2023. The Board agreed that the Company should revoke its NRFSB status, which was completed on 23 June 2023.

 

The Company does not have a fixed life and the Company's Memorandum and Articles of Incorporation (the "Articles") do not contain any trigger events for a voluntary liquidation of the Company. The Company is an operating company for the purpose of the AIM Rules for Companies. The Executive Team is responsible for the management of the Company.

 

The Company has taken advantage of the exemption conferred by the Companies (Guernsey) Law, 2008, Section 244, not to prepare company only financial statements which is consistent with the 2024 Annual Report.

 

 

2.      ACCOUNTING POLICIES

 

(a)           Basis of preparation

 

These condensed consolidated financial statements ("financial statements") have been prepared in accordance with International Financial Reporting Standard (IAS) 34 'Interim Financial Reporting', as adopted by the United Kingdom and all applicable requirements of Guernsey Company Law. They do not include all the information and disclosures required in annual financial statements and should be read in conjunction with the Company's annual audited financial statements for the year ended 31 December 2024, which have been prepared in accordance with UK adopted International Accounting Standards.

 

The Group does not operate in an industry where significant or cyclical variations, as a result of seasonal activity, are experienced during any particular financial period.

 

These financial statements were authorised for issue by the Directors on 3 September 2025.

 

(b)           Principal accounting policies

 

The same accounting policies and methods of computation are followed in these financial statements as in the last annual financial statements for the year ended 31 December 2024.

 

(c)         Going Concern

 

The Directors have considered the going concern basis in the preparation of the financial statements as supported by the Directors' assessment of the Company's and Group's ability to pay its liabilities as they fall due and have assessed the current position and the principal risks facing the business with a view to assessing the prospects of the Company. The Directors have prepared a cash flow forecast for the period to 30 June 2026 which shows that the Company and the Group will have sufficient cash resources to meet their ongoing liabilities as they fall due for at least twelve months from the date of approval of these financial statements. The Group is also profitable with a profit before tax of £0.1m generated in H1 2025 compared to a loss before tax of £0.6m in H1 2024. Following the extension of the ZDP shares and Pollen facility, the Company does not have any debt liabilities that fall due within the next 12 months.  Based on this, the Directors are of the opinion that the Company and the Group has adequate financial resources to continue in operation and meet its liabilities as they fall due for the foreseeable future.

 

It is however expected, whereby equity is required to facilitate an increase in drawdown from institutional funding lines that the Company will require growth capital to fund the continued growth of the loan book. The Company's largest shareholder, Somerston has indicated their willingness to support the Company's growth plans. The Company will be looking at options available to raise such additional growth capital over the course of the year.

 

The Directors therefore believe it is appropriate to continue to adopt the going concern basis in preparing the financial statements.

(d)           Critical accounting estimates and judgements in applying accounting policies

 

The critical accounting estimates and judgements are as outlined in the financial statements for the year ended 31 December 2024.

 

 

3.     SEGMENTAL REPORTING

 

Operating segments are reported in a manner consistent with the manner in which the Executive Team reports to the Board, which is regarded to be the Chief Operating Decision Maker (CODM) as defined under IFRS 8. The main focus of the Group is Sancus. Bearing this in mind, the Executive team have identified four segments based on operations and geography.

 

Finance costs and Head Office costs are not allocated to segments as such costs are driven by central teams who provide, amongst other services, finance, treasury, secretarial and other administrative functions based on need. The Group's borrowings are not allocated to segments as these are managed by the Central team. Segment assets and liabilities are measured in the same way as in these financial statements and are allocated to segments based on the operations of the segment and the physical location of those assets and liabilities.

 

The four segments based on geography, whose operations are identical (within reason), are listed below. Note that Sancus Loans Limited, although based in the UK, is reported to the Board separately as a stand-alone entity and, as such, is considered to be a segment in its own right.

 

1.             Offshore

 

Contains the operations of Sancus Lending (Jersey) Limited, Sancus Lending (Guernsey) Limited, Sancus Properties Limited, Sancus Group Holdings Limited and the JV.

 

2.             United Kingdom (UK)

 

Contains the operations of Sancus Lending (UK) Limited and Sancus Holdings (UK) Limited.

 

3.             Ireland

 

Contains the operations of Sancus Lending (Ireland) Limited.

 

4.             Sancus Loans Limited

 

Contains the operations of Sancus Loans Limited and Sancus Loans No.3 Limited.