Paragon Group Of Companies PLC Strategic reorganisation (3516R)
September 21 2017 - 2:01AM
UK Regulatory
TIDMPAG
RNS Number : 3516R
Paragon Group Of Companies PLC
21 September 2017
Under embargo until Stock Exchange announcement: 7.00am Thursday
21 September 2017
The Paragon Group of Companies PLC
Strategic reorganisation
The Paragon Group of Companies PLC ('Paragon' or 'the Group'),
today announces a strategic reorganisation of the Group to
accelerate its transformation into a diversified specialist banking
institution. This reorganisation will increase operational and
financial efficiency, enhancing engagement and delivery to
customers and business partners and will increase the Group's
capacity to meet its ambitious growth plans.
As part of the reorganisation, the Group also intends to change
its name to Paragon Banking Group PLC and to refresh its
branding.
Internal business transfers
A series of actions have been taken to simplify the Group's
corporate structure:
-- The Group's holding company, following
PRA and FCA approval, has sold investments
in Paragon Finance PLC and certain legacy
origination companies to Paragon Bank PLC
('Paragon Bank' or the 'Bank')
-- As a consequence, all the Group's lending
and operating activities, together with
substantially all its loan portfolios including
the Group's SPVs, now sit below Paragon
Bank within the Group structure, with the
exception of Idem Capital and certain other,
non-material, entities
-- All the Group's employees are now employed
by Paragon Bank or one of its operating
subsidiaries
These actions reflect the Group's strategy to source the
majority of its funding from the retail deposit market, whilst
utilising other sources opportunistically. These changes will mean
that Paragon Bank no longer requires substantial periodic capital
injections from the Group, as it will be self-sustaining and
consistently profitable. Over time, they are also expected to have
a favourable impact on the Group's cash requirements and working
capital cycle.
Board and management changes
The Group has adopted a new, streamlined management structure,
with specific responsibilities as follows:
-- Patrick Newberry and Finlay Williamson
join the Group Board, currently Non-Executive
Directors of Paragon Bank PLC. Finlay becomes
Chairman of the Risk & Compliance Committee,
in place of Fiona Clutterbuck, and a member
of the Audit Committee, and Patrick becomes
a member of the Audit, Risk & Compliance
and Nomination Committees
-- Fiona Clutterbuck becomes Chairman of the
Remuneration Committee, taking over from
Alan Fletcher who will cease to be an independent
non-executive director in February 2018
-- Barbara Ridpath and Graeme Yorston join
as Non-Executive Directors and become members
of the Audit Committee and the Risk & Compliance
Committee
-- Stephen Blaney, formerly Chairman of Paragon
Bank, leaves the business after leading
the Bank's Board during its initial growth
phase
-- Executive and Non-Executive Directors of
the Group Board now also constitute the
Board of Paragon Bank
-- All of the above changes are effective
from 20 September 2017
The new management structure brings a more simple and effective
governance structure which will enhance operational efficiency and
optimise the speed of decision-making.
Change of name and rebranding
The change of name to Paragon Banking Group PLC reflects the
changing focus towards the Group becoming a fully integrated
banking business. A series of rebranding exercises will follow in
the coming weeks to align the Group's various subsidiary brands and
allow customers to recognise Paragon as one fully integrated
banking organisation.
Nigel Terrington, Chief Executive of Paragon, said: "Paragon
Bank has delivered outstanding progress since its authorisation in
early 2014. Since that time, it has delivered over GBP3.5 billion
of retail deposits and led the Group's diversification strategy,
adding six new product lines. This strategic reorganisation is the
logical next step in our transition to a more broadly based banking
Group.
"The new name and rebranding reflects the strategy and will
deliver greater clarity for our customers, and utilises the
strength of the Paragon brand across the business.
"This revised organisational structure and the financial
efficiency from aligning the vast majority of the Group's business
lines under the Bank will help optimise funding and capital over
time, thereby delivering improved competitiveness for customers,
supporting greater capacity for growth and enhancing shareholder
returns."
Bob Dench, Chairman of Paragon, said:
"I would like to thank Stephen Blaney for his leadership of the
Bank's Board during the important initial phase and for his support
through the transition process over the past year.
"We are very pleased to welcome Barbara Ridpath and Graeme
Yorston, and also Patrick Newberry and Finlay Williamson from
Paragon Bank, all of whom bring a wealth of banking experience and
will strengthen Paragon's Group Board. The reorganisation announced
today will enhance the Group's governance and means that we have
the optimal structure to support our strategy. In addition,
bringing more of Paragon's business into the banking framework will
make it easier for customers to understand who we are and how we
are funded."
For further information, please contact:
Del Jones, Headland Tel 020 3805 4860 / 07894
Consultancy: 077 816
Lucy Legh, Headland Tel 020 3805 4810 / 07788
Consultancy: 577 637
This information is provided by RNS
The company news service from the London Stock Exchange
END
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