Arbuthnot Regulatory News (ARBB)

25 May 2005 15:24

Secure Trust Banking Group PLC25 May 2005 SECURE TRUST BANKING GROUP PLC Arbuthnot Banking Group moves to AIM At its AGM today, shareholders in Secure Trust Banking Group PLC (the "Company"and together with its subsidiaries, the "Group") approved a special resolutionto change the Company's name to Arbuthnot Banking Group PLC with effect from 1June 2005, in order to reflect the increasing importance of the ArbuthnotSecurities and Arbuthnot Latham businesses in the Group. All other resolutionsproposed at the AGM were also duly passed. At a Board Meeting preceding the AGM, the Directors resolved to move theCompany's listing from the London Stock Exchange's main market to the LondonStock Exchange's Alternative Investment Market ("AIM"), which offers lessprescriptive regulations and more entrepreneurial freedom to quoted companiesthan the main market. It also has the advantage of offering the increasingnumber of private investors in the Company more favourable treatment in respectof both inheritance tax and capital gains tax. Application will be made for thecancellation of the listing of the whole of the issued ordinary share capital ofthe Company on the Official List of the UK Listing Authority and the LondonStock Exchange's main market for listed securities and for the ordinary sharesto be admitted to trading on AIM. It is expected that dealings in the ordinaryshares will commence on AIM on 27 June 2005, at which time the listing of theCompany's ordinary shares on the Official List and the London Stock Exchange'smain market will be cancelled. Henry Angest, Chairman and Chief Executive, commented: "It is our view that over the last eight years, the regulatory climate in the UK, in common with the trend in Europe, has become ever more burdensome for business and free enterprise. Political correctness, corporate governance practices and Higgs in particular have made life for quoted companies difficult and the freedom to manage has been severely restricted. Small companies such as ours, which do not have the benefit of economies of scale, suffer disproportionately more than larger groups. Regrettably, it appears to me that this suffocation of businesses by over-regulation is a trend that will not abate in the foreseeable future. The result will be to reduce businesses to risk-averse bureaucracies, run by committees. Great companies are built by strong leaders and it comes as no surprise to me that many of the best business brains are deserting the quoted sector to join private equity firms, hedge funds or private enterprise in general. These developments do not bode well for London as the second most important financial centre in the world. If we lose the spirit of entrepreneurship and free enterprise, the City will inevitably decline in importance. Against this background, the less heavily regulated AIM has become the market of choice for smaller companies. A survey published recently by Arbuthnot Securities confirmed that institutional investors consider AIM to be a success story. This is a positive trend and we welcome the greater freedom which AIM will afford us. I am pleased to be able to report that trading in the first four months of the year has been encouraging. Whilst the Group's results continue to be influenced by the extent and timing of corporate finance revenues, the Directors nevertheless consider at the present time that the outlook for the year is in line with expectations." 25 May 2005 Enquiries: Secure Trust Banking Group PLC 020 7012 2400 Henry Angest, Chairman and Chief Executive Stephen Lockley, Finance Director Andrew Salmon, Chief Operating Officer College Hill 020 7457 2020 Tony Friend Richard Pearson This information is provided by RNS The company news service from the London Stock Exchange