SPONSORED BY: UNIVERSITY OF BIRMINGHAM
SECTOR FOCUS: FINANCE
Bank of the future to offer better services
bright new future for the ‘bank with a social conscience.’ The city unveiled a number of key developments including: • The buy-back of the majority of The Co-operative Bank plc’s shares in Unity • New Articles of Association that combine shares into one class and enshrine Unity’s social purpose • The successful issue of new shares that provides additional capital for growth.
B
‘Demand for a bank with a social conscience is stronger than ever’
Unity was founded by the main UK trade unions in 1984, growing into a challenger bank for small to medium sized businesses and organisations that create economic, community, social or environmental benefit in the UK. The bank says the new measures will enable it to
offer a better service to its clients. Prior to the announcement, The Co-operative Bank
plc (“TCB”) owned 26.7 per cent of Unity through its subsidiary, Co-operative Commercial Limited. Unity has entered into an agreement with Co-operative Commercial Limited, whereby Co-operative Commercial Limited has sold shares to Unity, to reduce its holding to 6.7 per cent. Unity is funding this from its existing resources.
Unity’s new Articles of Association redesignate all shares into a single class, and remove the different rights of the old classes. As a result, TCB will no longer have a controlling interest in Unity or the right to appoint directors. The new Articles also enshrine Unity’s social purpose so that a majority of 75 per cent of
irmingham based Unity Trust Bank has hailed the most significant shake-up in its 30-year history after a share buy-back heralded a
Personal honour is well deserved
By Kate Salter Marketing Officer Birmingham Business School
Shake-up: Alan Hughes
shareholders are required to make changes. Meanwhile, to finance expansion, Unity announced the successful raising of £8 million of new capital from existing and new shareholders to support growth.
Chairman Alan Hughes said: “These announcements represent the most significant changes to Unity since the bank was founded 30 years ago. We are now an independent bank, with a new Board, new leadership and the capacity to grow. “Our commitment to delivering a double bottom-
line of both social and economic benefit is now enshrined in our constitution. Demand for a bank with a social conscience is stronger than ever and I am delighted we have attracted additional capital to be able to meet it.”
Taking the next step to boost profits
Midland companies eager to take their growing businesses on to the next level should consider floating on the stock market, according to international accountancy firm Mazars. David Preston, a partner in Mazars’ Birmingham office (pictured), said: “Although current Initial Public Offerings (IPO) levels continue to be suppressed, flotation remains an excellent source of development capital for growing businesses. “To the end of November, a total of 104 UK
company IPOs had completed in 2015, compared to 134 over the equivalent prior year period and annual totals of over 400 a decade ago. “Despite this, most market indicators are now similar
to pre-recession levels, share price volatility is receding and there is growing evidence that floating is back on the agenda with many Midlands privately owned businesses approaching us, keen to learn more about this funding option.” Mr Preston joined a panel of experts in Birmingham, to discuss the IPO process and how to assess whether
companies are ready. The panel comprised Mr Preston, who heads up the West Midlands transaction services team of Mazars, Steve Douglas, head of corporate finance at Arden Partners, and Edward Dawes, corporate partner at law firm Squire Patton Boggs. All have extensive experience in
assessing the suitability of companies to float and guiding them through the IPO
process. Mr Preston said: “Finding funding on
acceptable terms can be a significant barrier to a company’s growth. “Whether through the main market or through AIM,
an IPO provides an opportunity for ambitious businesses to access the capital and liquidity of the largest and deepest pool of international capital in the world. “Whether you are serious about a flotation or
considering it as a possibility, we are offering an opportunity to discuss whether a flotation could be right for you and outline what will be involved.”
Birmingham Business School are delighted to announce that Professor John Child (pictured) has received a personal honour, the Richard Whipp Lifetime Achievement Award from the British Academy of Management (BAM) at the opening of its annual conference. Professor Child is most deserving of this award, he is one of the most influential and original thinkers in business and management over the past 40 years. His work has laid the foundations for thinking and research in numerous areas of the business and management field, and the quality of his scholarship is exemplary. John’s work has had
considerable impact on the discipline and will be drawn- upon by scholars for many years to come. John Child is Professor of
Commerce at Birmingham Business School, University of Birmingham, UK, Professor of Management at Plymouth University, and Visiting Professor at Sun Yat-Sen University, Guangzhou. He is a Fellow of the Academy of Management, the Academy of International Business and the British Academy of Management. In 2006, he was elected a
Fellow of the prestigious British Academy [FBA]. In 2012 he was awarded a Lifetime Achievement Award by the International Association for Chinese Management Research [IACMR].
FEBRUARY 2016 CHAMBERLINK 53
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