According to Sancus Lending’s interim results, the increase in new loan facilities shows “increased activity levels” across the group, with UK and Irish businesses singled out as “delivering growth”.
The firm noted that its profit before tax came to around £100,000 during the period, which compares to a £600,000 loss in H1 2024.
“This improved operating result reflects the benefits of the organic growth delivered in the period, disciplined credit management and stable credit quality and a gain arising from the repurchase of a portion of the group’s zero dividend preference (ZDP) shares during the period,” the report said.
Sancus Lending said the UK and Channel Island market continued to operate “under challenging conditions” as interest rates were “stubbornly high”, which has “placed pressure [on] borrower affordability and dampened activity levels in our core residential property lending segment”.
On the other hand, the firm said the Irish market was benefitting from a “more supportive macroeconomic environment, with lower base rates and resilient demand for property-backed finance”.
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Looking ahead, Sancus Lending said it was “focused on achieving sustainable run-rate profitability” and was entering the second half of the year with an “encouraging new business pipeline”.
It said its recently secured funding facility meant the group was well-positioned to “capitalise on selective growth opportunities across its core markets”.
Sancus Lending secures £20m Paragon Bank facility
Sancus Lending confirmed that it had entered into an agreement with Paragon Bank for a £20m committed funding facility.
The funding facility has a two-year term and will increase Sancus Lending’s capacity to grow its property-backed lending book in England, Wales and Scotland.
This facility complements Sancus Lending’s recently extended and upsized senior secured facility with Pollen Street Capital, which was increased from £125m to £200m and extended to June 2030.
“Together, these funding arrangements significantly strengthen the group’s lending capacity and provide a diversified platform to support future growth across its core markets,” the firm said.
