TIDMSTB
RNS Number : 0329M
Secure Trust Bank PLC
07 October 2016
7 October 2016
Secure Trust Bank PLC ("Secure Trust" or the "Company")
Announcement of Publication of Prospectus
Further to previous announcements Secure Trust is pleased to
announce today the publication of the Company's prospectus (the
"Prospectus") in relation to admission of its 18,191,894 ordinary
shares of GBP0.40 par value to the premium segment of the Official
List of the UK Listing Authority (the "Official List") and
admission to trading on the London Stock Exchange plc's ("LSE")
Main Market for listed securities (the "Main Market") (together,
"Admission") and cancellation of trading of its shares on the AIM
market of the LSE ("AIM"). It is expected Admission will become
effective and that dealings will commence at 8:00 am on 12th
October 2016.
The Company is not raising any funds or issuing any new shares
in connection with Admission. The Company's TIDM code on the London
Stock Exchange will remain 'STB' and its ISIN will remain
GB00B6TKHP66 and SEDOL number B6TKHP6.
Availability of Prospectus
The Prospectus has been approved by the UK Listing Authority and
is available for inspection on the Company's website at
www.securetrustbank.com/corporate-information and on the National
Storage Mechanism at http://www.morningstar.co.uk/uk/NSM. Copies of
the Prospectus are also available at the Company's registered
address at One Arleston Way, Shirley, Solihull, West Midlands, B90
4LH.
Expected timetable
Publication of Prospectus 7 October 2016
Last day of trading of the Shares 11 October 2016
on AIM
Expected delisting of the Shares 8.00 a.m. on
from AIM 12 October 2016
Expected admission of the Shares 8.00 a.m. on
to the Official List 12 October 2016
Expected commencement of dealings 8.00 a.m. on
of the Shares on the Main Market 12 October 2016
The times and dates set out in the expected timetable of
principal events above and mentioned in this document, and in any
other document issued in connection with Admission are subject to
change by the Company, in which event details of the new times and
dates will be notified to the UKLA, the London Stock Exchange and,
where appropriate, shareholders.
About Secure Trust Bank PLC
Secure Trust Bank is an established, well-funded and
well-capitalised UK retail bank with a 64 year trading track
record. Secure Trust Bank operates principally from its head office
in Solihull, West Midlands, and had 630 employees (full-time
equivalent) as at 30 June 2016. The Group's diversified lending
portfolio currently focuses on two sectors (i) Business Finance
through its Real Estate Finance, Asset Finance and Commercial
Finance divisions and (ii) Consumer Finance through its Personal
Lending, Motor Finance and Retail Finance divisions.
Trading Update
The Group has traded in line with the Directors' expectations
during the third quarter of 2016.
The Group's consumer lending activities in the Motor Finance,
Retail Finance and Personal Lending divisions have continued to see
strong demand. The Group has not seen any discernible shift in the
behaviour of its customers following the EU referendum
decision.
Over the last twelve months, the non-prime sector of the motor
finance market has seen significant competition from non-bank owned
new market entrants and certain existing lenders who historically
focused only on prime lending. These new entrants competed by
charging relatively low rates of interest to borrowers, offering
very high introducer commission rates and competing aggressively to
attract staff. The Group considers this approach to growth to be
unsustainable and chose not to compete for the segments of business
being targeted on these terms. Notwithstanding this challenge, the
Group has been able to achieve strong lending growth in its Motor
Finance division reporting a 35 per cent increase in customer
lending balances for the twelve month period ending 30 June 2016
through a focus on originating across a broader spectrum of the
market. More recently, the Directors believe that these competitors
have been retrenching, with at least one completely withdrawing
from the market. The retrenchment and withdrawal of these lenders
may present organic opportunities for the Group to write additional
business on a sustainable risk adjusted yield basis consistent with
the Group's strategy. The Group continues to adopt a cautious
approach to its SME lending activities. Exposures to Central London
residential developers are being carefully managed and the balance
of the Real Estate Finance division's portfolio continues to shift
towards residential investment lending which has continued to grow
in line with expectations. Recent new business origination in the
Asset Finance division has been focused on lower loan to value
lending. This is designed to protect the Group in the event that
the 2017-18 economic slowdown forecast by the Organisation for
Economic Co-operation and Development and Standard & Poor's,
amongst others, results in lower values of used assets. The
Directors consider this approach to be prudent pending the
emergence of greater clarity regarding macro-economic trends. The
Directors are pleased to note that having commenced operations in
September 2014, the Group's Commercial Finance division has
generated profitable growth in customer numbers during the third
quarter of 2016.
The Group continues to monitor developments in the housing
market generally and the residential owner occupied mortgage market
in particular. Though the rate of UK house price growth is slowing
according to recent data, the Directors believe that the
fundamental supply and demand dynamics continue to support the UK
housing market even given the increased levels of uncertainty
following the EU referendum decision. The Directors believe that
the Group can enter the mortgage market and over time build a
profitable and sustainable business. The Group's residential
mortgage proposition is expected to launch early next year.
The Group completed the closure of its personal current account
product, as planned, in September 2016. The closure of this product
simplifies the Group's operating model and removes the management
challenges and risks associated with the product. This product
generated less than 3 per cent of the Group's operating income in
the year ended 31 December 2015 and its closure is not expected to
have a material impact on earnings.
The Group has continued to see strong demand for its deposit
products. It has taken steps to reflect lower market prices whilst
continuing to offer attractive market facing rates on savings. The
implementation of a new digital deposit platform is progressing in
line with expectations.
Sir Henry Angest, Non-Executive Chairman of Secure Trust Bank
PLC, said:
"It is almost exactly five years since the Bank's IPO on AIM on
2 November 2011. Since then the Bank has delivered total
shareholder returns approaching 300%. The Directors continue to
believe that over time Brexit will create more opportunities than
threats for well-funded and well-capitalised smaller banks.
The move from AIM, which has served us well, to a premium
listing on the Main Market of the London Stock Exchange is a
natural progression and positions the Group for its next phases of
growth which will continue to be built around the three strategic
priorities of organic growth, diversification and M&A
activity."
Enquiries:
Secure Trust Bank PLC Tel: 020 7012 2400
Paul Lynam, Chief Executive
Officer
Neeraj Kapur, Chief
Financial Officer
----------------------------- -------------------
Stifel Nicolaus Europe Tel: 020 7710 7600
Limited
(Sponsor and Broker)
Robin Mann
Gareth Hunt
Stewart Wallace
----------------------------- -------------------
Canaccord Genuity Limited Tel: 020 7665 4500
(Nomad and Joint broker)
Sunil Duggal
Andrew Buchanan
----------------------------- -------------------
Bell Pottinger Tel: 020 3772 2500
(Financial PR)
Dan de Belder
Aarti Iyer
----------------------------- -------------------
Disclaimer
Stifel Nicolaus Europe Limited ("Stifel") has been appointed as
sponsor in relation to Admission. Stifel, which is regulated by the
Financial Conduct Authority in the United Kingdom, is acting
exclusively for the Company and no-one else in connection with
Admission and will not regard any other person as a client in
relation to Admission and will not be responsible to anyone other
than the Company for providing the protections afforded to its
clients or for advising any other person on the contents of the
prospectus or on any other transaction or arrangement referred to
in this announcement.
This announcement does not contain or constitute an offer of, or
the solicitation of an offer to buy or subscribe for, the
securities referred to herein to any person in any jurisdiction,
including the United States, or in any jurisdiction to whom or in
which such offer or solicitation is unlawful.
This announcement contains statements that are, or may be deemed
to be, "forward-looking statements". These forward-looking
statements may be identified by the use of forward-looking
terminology, including the terms "believes", "estimates", "plans",
"projects", "anticipates", "expects", "intends", "may", "will" or
"should" or, in each case, their negative or other variations or
comparable terminology, or by discussions of strategy, plans,
objectives, goals, future events or intentions. Forward-looking
statements may and often do differ materially from actual results.
The forward-looking statements reflect the Company's current view
with respect to future events and are subject to risks relating to
future events and other risks, uncertainties and assumptions
relating to the Company's business, results of operations,
financial position, liquidity, prospects, growth and strategies.
The forward-looking statements speak only as of the date they are
made and cannot be relied upon as a guide to future performance and
each of the Company, Stifel and their respective directors,
officers, employees, agents, affiliates or advisers expressly
disclaim any obligation to supplement, amend, update or revise any
of the forward-looking statements made herein, except where it
would be required to do so under applicable law.
Certain figures contained in this announcement, including
financial information, have been subject to rounding adjustments.
Accordingly, in certain instances, the sum or percentage change of
the numbers contained in this announcement may not conform exactly
with the total figure given.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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