1st Jun 2016 15:55
LONDON (Alliance News) - Gable Holdings Inc on Wednesday said it is still working to finalise the structure and terms of a GBP10 million guarantee from Chief Executive William Dewsall.
Last week, Gable said it will book a provision in its full-year results that looks set to wipe out the majority of its expected profit for the year, and said it has launched a full strategic review of the business. A GBP6.0 million provision will be booked against 2015, and the company has previously said it would deliver a pretax profit for that year in the range of USD7.0 million to USD8.0 million.
The company said at the time that Hogarth Underwriting Agencies Ltd, owned by Dewsall, had agreed to provide GBP10.0 million of capital to Gable's regulated subsidiary, and those funds would form part of Gable's regulatory capital in 2016.
However, on Wednesday the company said that Dewsall notified Gable it would be inappropriate to use Hogarth, being a regulated entity authorised by the UK Financial Conduct Authority, to provide the guarantee.
Dewsall instead plans to use a separate private vehicle wholly owned by him to provide the guarantee to Gable's regulated insurance subsidiary.
Gable said it is still working to finalise the structure and terms of the guarantee, and the guarantee remains subject to approval from the Financial Market Authority in Liechtenstein.
Shares in Gable closed down 10% at 4.50 pence Wednesday, losing ground after the late-afternoon announcement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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