Sancus to close Guernsey and Gibraltar offices; CFO Stubbs departs

The lender said that it was continuing to focus on returning the firm to profitability, which “includes measures to simplify the business, improve efficiency and optimise use of resources”.

As part of this, and following a successful funding round, Sancus said it would retain its London, Dublin and Jersey offices, close its Guernsey office and cease new business in Gibraltar entirely.

The lender said that this would provide the group with “consolidated centres” which reflected its three core geographic areas. These are UK, Ireland and offshore.

It said the group finance function would move to Jersey from Guernsey in the first half of this year, and it said it would continue to lend in the Guernsey market.

Gibraltar office to close and lending to cease

Sancus said in a review of its operations in Gibraltar last year it had “not identified sufficient quality lending opportunities to merit continued efforts in the region”.

It continued that it would lead to cost saving, risk reduction and redirection of resources to its three core geographical areas.

Sancus said that the goodwill of £8.64m held but the company since the acquisition of Sancus Lending Gibraltar in 2016 would be written down to nil.

The firm said that Sancus Gibraltar has generated £1.44m in review and a profit before tax of £941,000. It said that most of the revenue related to loans written prior to 2021.

Sancus CFO Stubbs to depart

As a result of the group moving its group finance function to Jersey from Guernsey long-standing CFO Stubbs will leave the business.

She will remain on board until 31 March to “effect an orderly handover”.

Stubbs has worked at Sancus since 2013, and the lender said during that time she has “played an important role in the planning of the company’s turnaround strategy”.

The lender thanked her for her “hard work and commitment” and wished her the best for her future endeavours.

Prior to Sancus she was a director at Amberton Asset Management for nearly eight years, and before that working at Sportingbet and Marsh.

Tracy Clarke has been appointed group interim CFO for an interim period of 12 months.

She has been a non-executive director at the company since March last year.

Clarke is currently managing director at Carlton Management Services, which will be appointed to “augment and support the development of the group’s finance function”.

This includes new technology for forecasting, performance and treasury management and reporting, the lender noted.

The firm said it intended to appoint a permanent CFO and it would review current arrangements in 12 months.

“The company looks forward to 2023 with cautious optimism. The continued retrenchment of banks and alternative lenders from development financing provides attractive opportunities for the alternative lenders that can remain active and with its recently successful corporate financing, Sancus is well positioned to take advantage of these opportunities,” it concluded.