REG - Arbuthnot Banking - Directorate Change

Arbuthnot BankingAnnouncement

08/08/2018 09:50

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 £24.53 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:







Arbuthnot Banking Group


0207 012 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 (Nomad and Joint Broker)


0207 710 7600




Robin Mann
Gareth Hunt
Stewart Wallace
 




Numis Securities Ltd (Joint Broker)


0207 260 1000




Chris Wilkinson
Stephen Westgate
 




Maitland (Financial PR)


0207 379 5151




Neil Bennett
Jais Mehaji
Sam Cartwright




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