28th Jun 2016 16:01
LONDON (Alliance News) - Shawbrook Group PLC said Tuesday a group of executives bought shares, as the lender reported that trading was in line with its expectations in 2016 so far, but that it will book an impairment charge due to irregularities uncovered in its Asset Finance unit.
Simon Featherstone, managing director for its business finance division, bought 26,150 shares at 153 pence each. The purchase is his only holding.
Karen George, a connected person to Philip George, managing director for business development, bought 50,000 shares at 140p each. Philip George now is interested in 92,198 shares.
Dylan Minto, director for corporate strategy, bought 40,000 shares at 145p each and now holds 305,258 shares.
General Counsel Daniel Rushbrook bought 10,000 shares at 139p each and holds 110,398 shares
All purchases took place on Tuesday.
The FTSE 250 bank said loan originations in the second quarter of 2016 were flat against the first quarter and were up 35% year-on-year, in line with its guidance.
But it will book a GBP9.0 million impairment charge in the second quarter on the Asset Finance unit of its Business Finance arm, due to irregularities found in one office. These irregularities have been rectified and were a result of a number of loans being underwritten in the asset finance unit which did not meet its lending criteria, Shawbrook said.
The control breach, Shawbrook said, was identified by the company's upgraded risk management system, and it is confident the new system will prevent any further issues like this occurring.
Shawbrook also said it had accepted the resignation of Tom Wood as its chief financial officer. Dylan Minto, currently director of strategy, will step in as interim CFO.
The stock closed down 14% at 140.00p Tuesday.
By Arvind Bhunjun; [email protected]; @ArvindBhunjun
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