Sancus Lending Group (LEND) AI Stock Analysis

• Market Cap: £2.29M
• Dividend Yield: N/A
• Average Volume (3M): 50.03K
• Price to Earnings (P/E): 3.1
• Beta (1Y): 0.55
• Revenue Growth: 30.78%
• EPS Growth: N/A
• Country: UK
• Employees: 42
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.00
• Shares Outstanding: 584,138,370
• 10 Day Avg. Volume: 91,091
• 30 Day Avg. Volume: 50,034
• PEG Ratio: -0.04
• Price to Book (P/B): -1.25
• Price to Sales (P/S): 0.16
• P/FCF Ratio: -0.14
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: 0.40p ▼(-1.00% Downside)

The overall stock score reflects significant financial challenges, including high leverage and liquidity issues, which are major concerns. However, recent corporate actions and a low P/E ratio provide some positive outlook. Technical indicators suggest bearish momentum, but potential undervaluation and strategic corporate events offer a mixed perspective.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong demand for Sancus's lending solutions, suggesting effective market penetration and product appeal, which supports long-term business sustainability.

Increased Lending Capacity

The increased lending capacity allows Sancus to expand its loan portfolio, enhancing its ability to serve more clients and capture market share, which is crucial for long-term growth.

Capital Structure Simplification

Simplifying the capital structure can reduce financial complexity and improve financial flexibility, allowing Sancus to allocate resources more efficiently and support strategic growth initiatives.

Negative Factors

High Leverage

High leverage poses a risk of financial instability, potentially limiting Sancus's ability to invest in growth opportunities and increasing vulnerability to economic downturns.

Negative Cash Flow

Negative cash flow indicates inefficiencies in operations and reliance on external funding, which can strain financial resources and hinder long-term operational sustainability.

Profitability Challenges

Weak profitability suggests that Sancus may struggle to generate sufficient returns on its operations, impacting its ability to reinvest in the business and sustain growth over time.

Sancus Lending Group Business Overview & Revenue Model

Company Description

Sancus Lending Group (LEND) is a financial services company specializing in providing secured and unsecured loans to small and medium-sized enterprises (SMEs) across various sectors. The company focuses on bridging the financing gap for businesses that may struggle to obtain traditional bank loans, offering tailored lending solutions that cater to the unique needs of its clients. In addition to lending, Sancus also provides advisory services and support for businesses seeking to optimize their financial strategies.

How the Company Makes Money

Sancus Lending Group generates revenue primarily through interest income from the loans it provides to SMEs. The company charges interest rates that are competitive yet reflective of the risk associated with lending to smaller businesses. Additionally, Sancus may charge origination fees, late payment fees, and other service fees related to the management of loans, which contribute to its revenue streams. Key partnerships with financial institutions, investors, and industry networks enhance its capacity to fund loans and manage risk, further bolstering the company's earnings potential. The firm may also engage in securitization of its loan portfolio, allowing it to raise capital through the issuance of asset-backed securities, thus diversifying its revenue sources.

Sancus Lending Group Financial Statement Overview

Summary

The company shows revenue growth but struggles with profitability and financial stability. High leverage and negative equity are significant concerns, indicating potential financial risk. Cash flow challenges suggest liquidity issues, despite operational improvements.

Income Statement

The income statement shows improvement in total revenue, with a significant increase from the previous year. Gross profit margin is strong, but net profit margin is weak due to the high expenses relative to revenue, resulting in a low net income. The company has positive EBIT and EBITDA margins, indicating potential operational improvement, but overall profitability remains low.

Balance Sheet

The balance sheet highlights significant leverage, with a very high debt-to-equity ratio due to negative equity. This presents a risk of financial instability. The equity ratio is negative, reflecting a concerning financial structure. Return on equity calculation is not applicable due to negative equity.

Cash Flow

Cash flow analysis reveals challenges with negative operating and free cash flows, indicating potential liquidity issues. However, cash flows from financing activities are positive, suggesting reliance on external funding. The operating cash flow to net income ratio is not favorable, indicating inefficiencies in converting income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.19M	15.61M	4.58M	9.99M	2.62M	6.20M
Gross Profit	16.86M	14.83M	1.45M	2.38M	7.13M	6.20M
EBITDA	15.34M	14.03M	-9.58M	-6.77M	-3.95M	-8.15M
Net Income	774.00K	559.00K	-9.13M	-14.06M	-10.34M	-14.52M
Balance Sheet
Total Assets	156.88M	122.12M	106.41M	101.55M	96.96M	102.94M
Cash, Cash Equivalents and Short-Term Investments	11.25M	2.53M	4.99M	4.13M	12.44M	15.79M
Total Debt	154.82M	121.60M	106.37M	82.11M	76.00M	57.68M
Total Liabilities	158.72M	124.18M	108.39M	94.38M	77.86M	73.44M
Stockholders Equity	-1.84M	-2.06M	-1.98M	7.17M	19.09M	29.49M
Cash Flow
Free Cash Flow	-30.99M	-17.98M	-13.55M	-25.36M	-8.48M	5.04M
Operating Cash Flow	-30.90M	-17.96M	-13.55M	-25.14M	-8.31M	5.29M
Investing Cash Flow	-478.00K	-584.00K	1.62M	-155.00K	399.00K	1.30M
Financing Cash Flow	36.59M	16.16M	12.80M	16.97M	4.55M	1.97M

Sancus Lending Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:LEND, the sentiment is Negative. The current price of 0.4 is below the 20-day moving average (MA) of 0.40, below the 50-day MA of 0.42, and below the 200-day MA of 0.46, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 35.78 is Neutral, neither overbought nor oversold. The STOCH value of 17.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:LEND.

Sancus Lending Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TIME	80 Outperform	£46.72M	7.89	8.50%	―	11.71%	31.15%
ORCH	75 Outperform	£12.81M	4.18	15.17%	3.33%	8.91%	94.32%
DFCH	72 Outperform	£82.05M	6.13	12.34%	―	17.35%	91.55%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
LEND	48 Neutral	£2.29M	3.08	―	―	30.78%	―
AMGO	35 Underperform	£2.98M	-11.88	―	―	-97.14%	98.49%

Sancus Lending Group Corporate Events

Sancus Lending Group Announces Tender Offer and Positive Trading Update

Sancus Lending Group Limited has announced a tender offer to simplify its capital structure by acquiring up to 1.7 million zero dividend preference shares (ZDP Shares) and amending the rights attached to these shares. The proposed changes aim to enhance operational and financial flexibility by reducing the final capital entitlement and removing certain historic restrictions. The company has also reported a positive trading update, with significant growth in revenues and loan facilities, despite operating in an uncertain market environment. The board remains confident in achieving further growth and long-term profitability.

Sancus Lending Group Expands Loan Capacity with New Funding

Sancus Lending Group Limited has announced the issuance of £1.5 million in preference shares to Somerston Fintech Limited, a subsidiary of its majority shareholder, Somerston Group. This move is part of the Somerston Junior Funding Commitment, which aims to enhance the capital available for Sancus Loans Limited, thereby supporting the growth of the Group’s loan book. The issuance is expected to have a positive impact on the company’s operations by increasing its lending capacity, which could strengthen its position in the financial services market.