Sancus Lending Group has provided a trading update for the year ended 31st December 2024, reporting loans under management of £238m, an 18% increase from £202m in 2023, driven by growth in its UK and Irish businesses. The company wrote £114m in new facilities during the year, up 12% from £102m in 2023.
Turnover rose by 36% to £16.8m from £12.3m, and after accounting for a £2.8m gain from the repurchase of some Zero Dividend Preference Shares, the company expects to report a break-even result for 2024, significantly improving on the £9m loss recorded in 2023. The board remains focused on returning the company to profitability, targeting run-rate profitability in 2025.
To support its growth strategy and financing arrangements, the company has secured a £10m junior funding commitment from its majority shareholder, Somerston. The funding will be used to back further loan financing, including additional drawings under the company’s £125m loan facility with Pollen Street Capital, which is currently drawn to £105m. Sancus is also in discussions to finalise further financing for its UK and Irish operations, including with a leading UK challenger bank.
The Somerston Junior Commitment will be provided through preference shares or subordinated loans to financing entities within the group. Where preference shares are issued, they will carry a 15% non-cash cumulative coupon, in line with existing preference shares issued in April 2024. Subordinated loans will have a non-cash cumulative coupon of 9.75% over the Bank of England base rate, with a target internal rate of return of approximately 17%.
