Final Results
June 25 2007 - 3:30AM
UK Regulatory
RNS Number:9112Y
Scarborough Building Society
25 June 2007
Monday 25 June 2007
SCARBOROUGH ANNOUNCES RECORD RESULTS
The Scarborough Building Society Group today announced an outstanding set of
annual results.
Highlights of the year included:-
* Group pre-tax profit up 20% to #6.8 million
* Group total assets up 33%, to a record #2.3 billion
* Society management expenses ratio down again, to 0.52%
* Group mortgage balances up 4% to #1.4 billion
* Members' savings balances up 8% to #1.3 billion
* Total assets under management up 41% to #4.3 billion
Outlining Scarborough's performance for the 2006/07 financial year, today,
Chief Executive John Carrier explained that behind these results, key
achievements were:-
* Further diversifying the business by acquiring a new offshore
retail deposit-taking subsidiary, Scarborough Channel Islands Limited
(SCIL).
* Launching a new non-conforming lending arm, Scarborough Specialist
Mortgages (SSM), enabling the Group to cater for the full market
spectrum of customers.
* Producing innovative, long term good value products to meet changing social
needs, including a dedicated Christmas Saver account giving people a
regulated alternative to hamper clubs following the Farepak collapse.
* Obtaining a first investment grade credit rating for the Group from
Moody's of A3.
* Securing primary and special servicer ratings of 2- and 3+ from independent
ratings agency Fitch for our mortgage administration subsidiary,
Scarborough Mortgage Services (SMS).
* Accelerating the growth of the Group by taking on major new mortgage
administration clients for SMS and completing transactions totalling #2.3
billion through mortgage trading subsidiary North Yorkshire Mortgages
(NYM).
* Creating a refreshed Corporate Social Responsibility (CSR) policy which
outlines our commitment to members and the communities in which they live,
giving 1% of pre-tax profit to good causes.
* Replacing our Legacy mainframe system with new Microsoft SQL Servers,
giving the Group access to the Microsoft .Net environment, to improve
the efficiency and future scalability of our systems.
* Launching a flagship new branch in Scarborough and planning to relocate to
a new state-of-the-art branch in Leeds.
John said, 'This has been a year of unprecedented growth and development for
the Scarborough Building Society Group, thanks to a clear business strategy
based on our integrated model of complementary businesses.
'We have achieved a successful balance between the focus needed to deliver on
our plan, and the ability to seize opportunities which enhance our Group
business, whilst responding to changing consumer and social trends by bringing
new and innovative products to market.
'All of this activity has enabled us to fulfil our core purpose of creating
profitability to invest in and sustain our business in order to return value to
our members through rewarding savings products and value-for-money mortgages.'
As for the future, John added that Scarborough has ambitious plans to ensure
the positive trend continues throughout the year ahead.
'Rising interest rates will create some uncertainty for the housing market and
competition will continue to reduce operating margins,' he said.
'However, these challenges bring opportunities for the Scarborough Group, and
we look forward to taking advantage of them in the year ahead.'
NOTES FOR EDITORS: For further information, or to arrange interviews, please
contact Press and Public Relations Manager, Tracy Fletcher, on (01723) 504219,
mobile: 07973 693376 or email tracy.fletcher@scarboroughbs.co.uk.
SCARBOROUGH BUILDING SOCIETY GROUP
FINANCIAL RESULTS FOR THE YEAR ENDED 30 APRIL 2007
SUMMARY
2007 2006
#m #m
INCOME STATEMENT
Net Interest Receivable 16.1 16.2
Other Income and Charges 6.6 5.0
____ ____
22.7 21.2
Administrative Expenses (15.6) (15.6)
Provisions (0.3) -
____ ____
Profit before Taxation 6.8 5.6
Taxation (2.0) (1.7)
____ ___
Profit for the Financial Year 4.8 3.9
____ ___
BALANCE SHEET
Liquid Assets 845 358
Mortgages 1,401 1,346
Fixed and Other Assets 52 29
_____ _____
Total Assets 2,298 1,733
_____ _____
Shares and Borrowings 2,115 1,609
Other Liabilities 28 22
Subordinated Liabilities 35 35
Subscribed Capital 65 15
Reserves 55 52
_____ _____
Total Liabilities 2,298 1,733
_____ _____
BACKGROUND INFORMATION - SCARBOROUGH BUILDING SOCIETY
* SBS is a successful UK building society, operating throughout the UK, as
well as through its offshore subsidiary, based in Guernsey.
* With Group assets under management of over #4 billion and a Moody's
investment grade credit rating, SBS is a financially secure top 20 building
society, with interests across a broad range of financial services
businesses.
* The SBS Group is made up of Scarborough Building Society; Scarborough
Mortgage Services (SMS), which administers mortgages for several
international investment banks and other UK financial services businesses;
North Yorkshire Mortgages (NYM), the asset origination and trading arm;
Scarborough Specialist Mortgages (SSM), our new brand offering
non-conforming and buy-to-let home loans, and our offshore deposit-taking
subsidiary, Scarborough Channel Islands Limited (SCIL).
* The Group also operates through a national network of mortgage
intermediaries, offering products to a wide range of market segments;
including prime residential, buy-to-let (including student and holiday
let), self-certification and adverse credit.
* We are committed to actively supporting our local communities by delivering
a Corporate Social Responsibility policy encompassing cash sponsorship,
staff volunteering, environmentally friendly practices and investment in
our people.
* We believe in leading by example and being different through our
professionalism, innovative products, systems and infrastructure, and the
way we do business.
* An Investor in People with an achievement culture, we strive to be an
employer of choice by offering fair pay, opportunities for training and
career development, recognition for outstanding performance and attractive
benefits.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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