Sancus Lending Group has started a formal review of its lending activities in the Channel Islands, where it says it has been facing “challenging” market conditions.
In an unaudited interim results update, the company – which provides property finance across the UK, Ireland and Channel Islands – said that it currently expects to report a pre-tax operating loss of £3.4m for the first six months of the year.
It pointed to a “geopolitical and macroeconomic backdrop” that had “impacted activity levels across the Group’s markets”.
The Group has determined it is optimal to concentrate capital and operational resources on its higher-growth UK and Irish activities
Sancus unaudited interim results update
A number of factors impacting financial performance were cited, including operating expenses – which rose to £3.8m (compared to £3m in the same period last year).
“This increase primarily reflects planned investments in expanding human capital across core UK, Ireland, and central support functions, alongside higher management costs within the Channel Islands,” the update added.
While the Group noted a 20.6% increase in new UK and Irish loan facilities written (to £72.1m – up from £59.7m in the same period last year) it also documented a drop from £24.6m to £9.1m in the Channel Islands.
It said that this reflected “the continued challenging conditions in that market”.
“The Group has determined it is optimal to concentrate capital and operational resources on its higher-growth UK and Irish activities,” the update explained, noting that “a formal review of strategic options regarding its Channel Islands lending activities” had been initiated.
