Shares in Sancus Lending Group, the AIM-listed specialist lender, fell 12% to 1.1p after the company said first-half profitability is below management expectations despite a sharp increase in revenue.
Revenue for the four months to 30 April 2026 rose 44.1% to £8.5 million from £5.9 million in the same period last year, driven by the UK and Irish businesses
Assets under management grew 6.6% from the end of December 2025 to £326.8 million, while new loan facilities written in the period totalled £42.9 million, broadly in line with the prior year’s £42.4 million. However, the board said the geopolitical and macroeconomic backdrop has resulted in slower deployment of capital than originally anticipated and longer loan durations, while increased financing and liquidity carry costs from maintaining higher cash balances have weighed on margins. Separately, Sancus announced the issuance of £500,000 of bonds to Somerston Fintech, a subsidiary of majority shareholder Somerston Group, carrying an 8% coupon and maturing in October 2027.
The proceeds will provide additional working capital flexibility. The bond issuance constitutes a related party transaction under AIM Rule 13, with independent directors confirming the terms are fair and reasonable after consulting nominated adviser Shore Capital. The board said it remains focused on disciplined capital deployment, margin management and growing assets under management through the remainder of the financial year.