Directorate Change, Trading & Bond Issue

Sancus Lending Group Limited (AIM: LEND) is pleased to announce the appointment of Andrew Charnley, Managing Director of Sancus Lending (UK) Limited (the Company's UK subsidiary), as Chief Executive Officer ("CEO") of the Group with effect from 10 July 2026.

Andrew has more than 30 years of commercial lending expertise, with particular expertise in real estate finance. He has held senior leadership roles including Barclays, Lloyds Banking Group & Together Money, and his responsibilities have included growing lending businesses, delivering operational improvements and maintaining a strong risk focus. Andrew holds a degree in Economics from Staffordshire University.

Since joining the Group in October 2024, Andrew has led a significant transformation of the UK business, strengthening its customer proposition, enhancing operational processes, embedding robust risk management disciplines and building a strong leadership team, all of which underpinned by a values based approach. These improvements have led to strong growth. During 2025, the UK business wrote new facilities of £93.5m (2024: £48.3m), contributing to a 49% increase in AUM to £125.4m (2024: £84.0m).

Rory Mepham, who has served as CEO since June 2021, will facilitate an orderly transition of responsibilities to Andrew and take up a new opportunity with Somerston Group Limited ("Somerston"), the Group's majority shareholder.

Current Trading

As announced on 26 May 2026, the Board is encouraged by the progress made by its lending businesses in challenging market conditions. However, the geo-political and macro-economic backdrop has impacted activity levels across the Group's markets, and consequently profitability, in the first half. These trends persisted throughout June 2026. As a result, the Group is implementing measures, including efficiency initiatives, that are expected to return it to operating profitability during the second half of 2026.

The Group expects to release its half year results for the period ended 30 June 2026 in September 2026.

Issuance of Sancus Bond

The Board of the Company today also announces that it has issued £0.5 million of Sancus Bonds to Somerston Fintech Limited ("Somerston Fintech"), a subsidiary of Somerston. The Sancus Bonds have a coupon of 8 per cent. and mature in October 2027. The proceeds of the subscription will provide the Group with additional working capital flexibility.

Related Party Transaction

Somerston Fintech, a member of Somerston, is a related party of the Company for the purposes of the AIM Rules for Companies ("AIM Rules"). This issuance of Sancus Bonds constitutes a related party transaction under AIM Rule 13, in respect of which the independent directors of the Company, having consulted with the Company's nominated adviser, Shore Capital and Corporate Limited, consider the terms to be fair and reasonable insofar as shareholders of the Company are concerned.

Commenting on the changes, Steve Smith, Chairman said:

"On behalf of the Board, I would like to thank Rory for his commitment to Sancus and for his hard work over the last 5 years during which time he has resolved numerous legacy issues and renewed the strategic focus of the business. We are delighted that Andrew has agreed to take on the CEO role following an extensive career in performance driven business leadership and a successful spell as MD of our UK business. We look forward to supporting him as he leads the Group in its next growth phase."

Commenting on his appointment, Andrew Charnley said:

"I am delighted to become CEO of Sancus. The progress Sancus UK has made in the last 18 months has established a very good foundation for its future profitable growth. I am now excited to work with the colleagues across the broader Group and our other partners and stakeholders to deliver strong operating performance and discipline across our entire business, delivering controlled and sustainable growth as well as long-term value for our shareholders."

Commenting on his resignation, Rory Mepham said:

"It has been a privilege to lead Sancus over the past five years. In that time the Group has worked through a substantial legacy loan book, rebuilt its team, simplified its capital structure and returned to growth, with its UK and Irish businesses now established as significant lending operations in their own right. That progress has been very much a collective effort, and I am grateful to colleagues across the Group, and to our shareholders, for their support throughout. With these foundations in place, this is the right time to hand over, and Andrew is the right person to lead the business through its next phase. His leadership of our UK business has demonstrated his ability to drive performance, strengthen customer relationships and build high-performing teams. I wish Andrew and the broader Sancus team every success."."

Disclosures by Rule 17 and Schedule Two, paragraph (g) of the AIM Rules for Companies

Andrew Heath Charnley, aged 54, is, or has been during the previous five years, a director or partner of the following companies or partnerships:

As at the date of this announcement, Andrew Charnley, together with his persons closely associated (as defined under MAR) holds no shares in the Company. There is no further information to be disclosed in relation to the appointment of Andrew Charnley pursuant to Rule 17 and Schedule 2, paragraph (g) of the AIM Rules.

Issue of Shares

The Company has agreed to issue approximately 11,000,000 new Ordinary Shares to Rory Mepham as soon as practicable in full and final settlement of any entitlement he may have under the Company's Long-Term Incentive Plan.