Arbuthnot Banking Group PLC Directorate Change (1913X)
August 08 2018 - 3:48AM
UK Regulatory
TIDMARBB
RNS Number : 1913X
Arbuthnot Banking Group PLC
08 August 2018
8 August 2018
For immediate release
ARBUTHNOT BANKING GROUP
Board Changes
Arbuthnot Banking Group PLC ("ABG" or "the Group") announces the
retirement of Paul Lynam as a Director of ABG with immediate
effect.
Paul has been a Director of ABG since 2010 when he joined the
Group to be Chief Executive Office of Secure Trust Bank PLC
("STB"). During this time STB and the Group have enjoyed
considerable success. He led STB to be the first bank to IPO
following the financial crisis. STB initially obtained a quotation
on AIM and has subsequently secured a premium listing on the main
market.
In recent times, the Group has been seeking to build a
Commercial Banking business, has acquired Renaissance Asset Finance
Ltd ("RAF") and launched an Asset Based Finance business. These
businesses have the potential to represent competition for STB.
Therefore, in order to remove the risk of conflicts of interest
arising at some time in the future, Paul has decided to step down
from the Board of ABG with immediate effect.
Also as announced by STB, Sir Henry Angest and Andrew Salmon
have stepped down from the Board of STB for the same reason.
As a result of Sir Henry and Andrew leaving the Board of STB, it
is expected that ABG will no longer be seen to have significant
influence over STB. As highlighted in the Group's 2017 annual
accounts and the 2018 interim results, it is expected that the
investment will be accounted for as a financial asset at fair value
and no longer be treated as an associate. The Group expects this
will therefore result in the investment in an associate being
derecognised in its accounts. This is expected to result in a
non-cash loss, given that as at 8 August 2018 the Group's holding
of 3,444,538 shares in STB were held on the balance sheet at
GBP24.53 each.
The resultant loss arising from the de-recognition of the
associate is expected to be presented as a discontinued operation
in ABG's 2018 annual accounts along with the associate income
recorded to 8 August 2018. Going forward the Group will hold the
remaining shares in STB as a "financial investment" with changes in
the market value being recorded in other comprehensive income. The
dividend income will be shown as other income. The Group remains a
supportive shareholder of STB.
De-recognition of the associate will have no material impact on
the Group's capital surplus available for future growth.
Sir Henry Angest, Chairman and CEO of ABG commenting on the
resignation of Paul Lynam from the Board said "Paul has been a
Director of ABG for over 7 years and has achieved a lot during his
time, both in the role of a Group Director and as CEO of STB. We
are grateful for the significant contribution he has made and wish
him well as he continues in his role as CEO of STB. We will miss
his straightforward and forthright advice."
ENQUIRIES:
0207 012
Arbuthnot Banking Group 2400
Sir Henry Angest, Chairman and Chief Executive
Andrew Salmon, Group Chief Operating Officer
James Cobb, Group Finance Director
Stifel Nicolaus Europe Ltd trading as KBW 0207 710
(Nomad and Joint Broker) 7600
Robin Mann
Gareth Hunt
Stewart Wallace
0207 260
Numis Securities Ltd (Joint Broker) 1000
Chris Wilkinson
Stephen Westgate
0207 379
Maitland (Financial PR) 5151
Neil Bennett
Jais Mehaji
Sam Cartwright
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END
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