Sancus Lending Group (LEND) AI Stock Analysis

• Market Cap: £2.58M
• Dividend Yield: N/A
• Average Volume (3M): 242.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.31
• Revenue Growth: 31.87%
• EPS Growth: N/A
• Country: UK
• Employees: 42
• Sector: Financial
• Sector Strength: 72
• Industry: Financial - Credit Services
• EPS (TTM): <0.01
• Shares Outstanding: 584,138,370
• 10 Day Avg. Volume: 429,704
• 30 Day Avg. Volume: 242,100
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £0.50
• Price Target Upside: 11.11% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 47 Neutral
• Price Target: 0.50p ▲(11.11% Upside)

The overall stock score reflects significant financial challenges, including high leverage and liquidity issues. However, positive corporate events and strategic moves to enhance lending capacity and simplify capital structure provide some optimism for future growth.

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 on its loan portfolio, which includes various loan products such as short-term secured loans and bridging finance. The company typically charges interest rates that reflect the risk profile of the loans issued, along with potential origination fees and other service charges associated with the loans. Additionally, Sancus may earn revenue through partnerships with real estate developers and businesses that secure financing, as well as through asset management fees if it manages funds for third-party investors. The overall revenue model is supported by the company's ability to assess credit risk effectively and maintain a diversified lending portfolio.

Sancus Lending Group Financial Statement Overview

Summary

Sancus Lending Group 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.61M	12.31M	9.99M	2.76M	-3.97M
Gross Profit	14.83M	1.45M	2.38M	1.92M	-4.71M
EBITDA	14.03M	-9.58M	-4.41M	-3.95M	-8.15M
Net Income	559.00K	-9.13M	-14.06M	-10.34M	-14.52M
Balance Sheet
Total Assets	122.12M	106.41M	101.55M	96.96M	102.94M
Cash, Cash Equivalents and Short-Term Investments	2.53M	4.99M	4.13M	12.44M	15.79M
Total Debt	121.60M	106.37M	82.11M	65.25M	57.68M
Total Liabilities	124.18M	108.39M	94.38M	77.86M	73.44M
Stockholders Equity	-2.06M	-1.98M	7.17M	19.09M	29.49M
Cash Flow
Free Cash Flow	-17.98M	-13.55M	-25.36M	-8.48M	5.04M
Operating Cash Flow	-17.96M	-13.55M	-25.14M	-8.31M	5.29M
Investing Cash Flow	-584.00K	1.62M	-155.00K	399.00K	1.30M
Financing Cash Flow	16.16M	12.80M	16.97M	4.55M	1.97M

Sancus Lending Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 0.45 is below the 20-day moving average (MA) of 0.45, below the 50-day MA of 0.46, and below the 200-day MA of 0.48, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 44.62 is Neutral, neither overbought nor oversold. The STOCH value of 36.11 is Neutral, 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
DFCH	76 Outperform	£73.77M	5.71	13.00%	―	28.70%	340.22%
TIME	74 Outperform	£50.88M	9.52	7.96%	―	21.71%	31.07%
ORCH	74 Outperform	£13.03M	5.65	11.96%	1.64%	17.87%	52.54%
Sector *	67 Neutral	¥850.21B	13.22	9.24%	2.92%	7.76%	9.30%
LEND	47 Neutral	£2.58M	―	-1088.89%	―	31.87%	―
AMGO	35 Underperform	£1.57M	―	-200.00%	―	-97.14%	98.49%
ZAIM	―	£2.31M	―		―	―	―

Sancus Lending Group Corporate Events

Sancus Lending Group Boosts Lending Capacity with New Funding Facility

Sancus Lending Group Limited reported a 29% increase in revenue to £9.7 million for the first half of 2025, alongside a 54% rise in new loan facilities. The company has secured a new £20 million funding facility with Paragon Bank to enhance its lending capacity in England, Wales, and Scotland. This move, combined with an extended facility with Pollen Street Capital, positions Sancus to capitalize on growth opportunities despite challenging conditions in the UK property market. The Irish market’s favorable conditions provide a counterbalance, supporting the company’s geographic diversification strategy.

Sancus Lending Group Simplifies Capital Structure with Key Approvals and Bond Issuance

Sancus Lending Group Limited announced the successful passing of all resolutions at its recent meetings, including amendments to ZDP Shares and the approval of a Tender Offer. The company also issued new bonds to fund the Tender Offer and amended existing bonds to offer a payment-in-kind interest option. These moves aim to simplify the company’s capital structure and support its growth and profitability strategy.

Sancus Lending Group Expands Credit Facility and Issues Preference Shares

Sancus Lending Group Limited has announced an expansion of its credit facility with Pollen Street Capital, increasing its capacity from £125 million to £200 million and extending its maturity to at least June 2030. This move aims to support the company’s growth in property-backed lending across its key markets. Additionally, Sancus has issued £1.5 million in preference shares to Somerston Fintech Limited, enhancing its capital deployment for existing funding lines, which is expected to bolster the company’s loan book expansion.

Sancus Lending Group Announces Capital Structure Simplification Proposals

Sancus Lending Group Limited has announced a series of proposals aimed at simplifying its capital structure and enhancing financial flexibility. These include amendments to Zero Dividend Preference Shares, a Tender Offer for certain ZDPs, and related bond amendments. The proposals are designed to reduce future financial obligations and improve cash resource deployment. The company also reported an increase in revenue and loan facilities, indicating stable credit quality and confidence in continued growth for 2025.