Sancus Lending Group has reported interim results showing a return to profit in the first half of 2025.
The group posted a profit before tax of £0.1m, compared with a £0.6m loss in the same period last year, supported by a £1m gain from the buy-back of ZDP shares.
Group revenue rose 29% year-on-year to £9.7m, while assets under management grew 9% since December to £258.8m.
New loan facilities written in the period increased 64% to £84.4m.
The UK business saw AUM rise 14% to £95.6m, with £34.4m in new lending.
In Ireland, AUM increased 29% to £61.7m, with £25.4m of new facilities.
Channel Islands AUM dipped slightly to £101.6m as the group continued winding down its legacy Jersey loan book, though £24.6m of new lending was completed through its joint venture with Hawk.
Rory Mepham, chief executive of Sancus Lending Group, said: “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 to £258.8m and deliver Group revenue of £9.7m, a 29% increase on 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.”
During the half year, Sancus agreed revised terms on its facility with Pollen Street Capital, increasing it to £200m and extending maturity to 2030.
It also entered into a £20m three-year committed facility with Paragon Bank to expand UK lending.
Amberton, the group’s private wealth and asset management joint venture, increased Loan Note AUM 46% to £60.9m.
The company also repurchased £1.4m of ZDP shares, adjusted bond terms to allow payment-in-kind interest, and drew £4.4m of a £10m junior funding commitment provided by its largest shareholder, Somerston.
