Sancus Lending Group (LEND) AI Stock Analysis

• Market Cap: £9.67M
• Dividend Yield: N/A
• Average Volume (3M): 50.03K
• Price to Earnings (P/E): 6.9
• Beta (1Y): 1.14
• 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: 1,085,860,000
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: 1.00p ▲(150.00% Upside)

The score is held back primarily by weak financial quality—negative equity/high leverage and negative operating/free cash flows—despite improving revenue. Technicals are supportive with the price above major moving averages and positive MACD, and valuation looks relatively low with a P/E near 8, but these positives do not fully offset the balance-sheet and liquidity risks.

Positive Factors

Revenue Growth

Sustained revenue growth near 30.8% shows expanding loan originations and stronger top-line momentum. Over 2–6 months this supports scale economics, greater fee capture and underwriting data accumulation, helping margin expansion and product cross-sell durability.

Operational Margin Improvement

Positive gross profit and EBIT/EBITDA margins indicate the core lending operations can be profitable before financing and provisioning. If sustained, operational leverage from scale can fund investments and absorb credit variability, improving long-term profitability prospects.

SME Lending Niche & Diversified Funding

A focus on SME lending combined with origination fees, service fees, securitisation and partnerships creates diversified revenue and funding channels. This structural model supports repeatable cash flows and access to wholesale funding, strengthening business resilience.

Negative Factors

Negative Equity & High Leverage

Negative equity and very high leverage pose a persistent solvency and regulatory risk. Over months this restricts capital flexibility, increases refinancing risk and raises funding costs, limiting ability to scale lending or cushion credit shocks without external recapitalisation.

Negative Operating and Free Cash Flows

Recurring negative operating and free cash flows indicate the core business does not yet generate cash to fund growth. Continued dependence on financing raises liquidity vulnerability and makes the company exposed to market funding cycles and investor appetite over the medium term.

Weak Net Profitability

Despite revenue gains, high expenses compress net margins and produce low net income. This limits retained earnings, slows equity rebuilding and hampers capital generation needed for loan book growth, making long-term self-funding and resilience more difficult without margin control.

Sancus Lending Group Business Overview & Revenue Model

Company Description

Sancus Lending Group Limited provides alternative finance services primarily in the United Kingdom and Ireland. It operates through four segments: Offshore, United Kingdom, Ireland, and Sancus Loans Limited. The company offers property backed, and small and medium-sized enterprise loans. It also provides property development services; and invests in fintech companies. The company was formerly known as GLI Finance Limited and changed its name to Sancus Lending Group Limited in May 2021. Sancus Lending Group Limited was incorporated in 2005 and is based in Saint Peter Port, the United Kingdom.

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

Revenue is improving and EBIT/EBITDA margins are positive, but overall profitability remains weak. The balance sheet is a major risk with negative equity and very high leverage, and cash flow is pressured by negative operating and free cash flows, implying liquidity strain and reliance on external financing.

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:LEND, the sentiment is Positive. The current price of 0.4 is below the 20-day moving average (MA) of 0.65, below the 50-day MA of 0.50, and below the 200-day MA of 0.47, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 54.91 is Neutral, neither overbought nor oversold. The STOCH value of 25.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	£49.96M	8.16	8.50%	―	11.71%	31.15%
ORCH	75 Outperform	£12.81M	4.18	15.17%	3.33%	8.91%	94.32%
TRU	73 Outperform	£118.79M	26.48	―	―	203.09%	―
DFCH	73 Outperform	£108.30M	8.09	12.34%	―	17.35%	91.55%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FCH	66 Neutral	£460.53M	26.53	3.93%	―	7.90%	―
LEND	53 Neutral	£9.67M	6.92	―	―	30.78%	―

Sancus Lending Group Corporate Events

Sancus Lending Group Posts Strong 2025 Growth and Sharp Profit Improvement

Sancus Lending Group reported a strong trading performance for the year ended 31 December 2025, with turnover rising 32% to approximately £22.1m and an expected profit before tax of slightly over £1.0m, driven by robust growth in its UK and Irish operations and an improved contribution from its Channel Islands business. New lending facilities nearly doubled to £212m and loans under management increased 33% to around £317m, while the Group continued to reduce leverage and financing risk through further repurchases of its zero dividend preference shares, generating gains of £2.6m; the Board signalled confidence in future prospects and run-rate profitability as it targets further growth in 2026, with audited results due in March 2026.

The most recent analyst rating on (GB:LEND) stock is a Hold with a £0.40 price target. To see the full list of analyst forecasts on Sancus Lending Group stock, see the GB:LEND Stock Forecast page.

Sancus Draws £1.4m Junior Funding from Majority Shareholder to Expand Loan Book

Sancus Lending Group Limited has issued £1.4 million of preference shares in its subsidiary Sancus Loans Limited to Somerston Fintech Limited, a subsidiary of its majority shareholder Somerston Group, under an existing junior funding commitment of up to £10 million. The preference shares, which carry a non-cash, cumulative 15% coupon and mature in November 2026, will increase the capital available to Sancus Loans Limited for one of the Group’s existing funding lines, enabling further expansion of the Group’s loan book, while leaving £1.55 million of the junior funding commitment still undrawn and reinforcing Sancus’s capacity to support lending growth.

The most recent analyst rating on (GB:LEND) stock is a Hold with a £0.40 price target. To see the full list of analyst forecasts on Sancus Lending Group stock, see the GB:LEND Stock Forecast page.

Sancus Completes ZDP Share Tender Offer and Issues Over 500m New Shares

Sancus Lending Group has secured shareholder approval for a series of capital structure measures, including a tender offer for its zero dividend preference (ZDP) shares and amendments to its articles of association to remove certain restrictions on the company. The group will buy back 1.7 million ZDP shares, representing about 52% of the ZDP shares in issue (excluding treasury), all tendered by majority shareholder Somerston, for £2.04 million at 120 pence per share, to be settled through the issue of 501,721,593 new ordinary shares. These repurchased ZDP shares will be cancelled, and the new ordinary shares are expected to be admitted to trading on AIM on 22 December 2025, after which Sancus will have 1,085,859,939 ordinary shares in issue, redefining its total voting rights and potentially reshaping its ownership and governance profile for existing shareholders.

The most recent analyst rating on (GB:LEND) stock is a Hold with a £0.40 price target. To see the full list of analyst forecasts on Sancus Lending Group stock, see the GB:LEND Stock Forecast page.

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.

The most recent analyst rating on (GB:LEND) stock is a Hold with a £0.50 price target. To see the full list of analyst forecasts on Sancus Lending Group stock, see the GB:LEND Stock Forecast page.