Brown (N.) Group PLC Update (2259C)
April 11 2017 - 9:14AM
UK Regulatory
TIDMBWNG
RNS Number : 2259C
Brown (N.) Group PLC
11 April 2017
11(th) April 2017
FY17 EXCEPTIONAL COSTS UPDATE
N Brown Group Plc ("N Brown" or the "Group") provides the
following update on its estimated exceptional costs for FY17.
The Group has previously guided to FY17 exceptional costs of
c.GBP12m, of which GBP9m related to financial services customer
complaint redress. Within this GBP9m we had provided for, firstly,
recompensing certain customers due to an error in our previous
calculation for redress and, secondly, our estimate of the likely
future costs arising from complaints relating to financial services
products sold in the past.
We now expect the cost of likely future complaints to be higher
than our previous estimate for the following reasons:
-- The Financial Conduct Authority's ("FCA") industry-wide
deadline for complaints has been announced as August 2019, a year
later than had previously been indicated
-- We have experienced a greater than anticipated volume of
complaints due to wider public awareness of the August 2019
deadline
-- The age profile of complaints received are typically older
than we had previously experienced, which increases the average
redress amount; and
-- An adjustment due to the Supreme Court judgment in the case
of Plevin v Paragon Personal Finance Ltd, taking into account the
final guidance and rules recently issued by the FCA.
We therefore expect to incur an FY17 exceptional cost related to
financial services customer complaint redress in the region of
GBP22m - GBP24m. The cash cost associated with this exceptional
item will be incurred over the period to August 2019.
We continue to expect an additional GBP2m - GBP3m exceptional
costs in FY17 in relation to our ongoing historic tax cases. Total
FY17 exceptional costs are therefore expected to be in the region
of GBP24m - GBP27m.
We will be announcing our FY17 full year results on 27 April
2017.
For further information:
N Brown Group
Craig Lovelace, CFO On the day 07887
Bethany Hocking, Director 536153
of Investor Relations Thereafter 0161 238
1845
MHP
John Olsen / Simon Hockridge 0203 128 8100
NBrown@mhpc.com
This information is provided by RNS
The company news service from the London Stock Exchange
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