Sancus Lending Group Ltd on Wednesday announced the sale of Sancus Lending Gibraltar Ltd to John Davey for £10,000.

The property finance company referred to its announcement on January, which said after reviewing its Gibraltar operations during 2022, it did not identify ‘sufficient quality lending opportunities’ to merit continued efforts in the regions.

As a result, it said on Wednesday that the goodwill of £8.6 million was written down to nothing.

Sancus said the disposal will result in cost savings of around £200,000, relating to run-off costs plus the avoidance of redundancies and associated expenses.

It also said it will allow a refocus on its core markets - the UK, Ireland and the Channel Islands.

The proceeds of the disposal, which is payable in cash, will be used for working capital purposes, while the sale is in line with its ongoing structured change programme, Sancus said.

‘The executive team, supported by the board, continue to focus on returning the company to profitability. This includes ongoing measures to simplify the business, improve efficiency and optimise the use of its resources,’ the company said in a statement.

Shares in Sancus were up 8.3% to 1.30 pence each in London on Wednesday afternoon.

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