Skip.b.s Pib Regulatory News (SBSA)

26 Jun 2006 07:01

Scarborough Building Society26 June 2006 SCARBOROUGH ANNOUNCES IMPRESSIVE ANNUAL RESULTS- AND ACCOMPANIES THEM WITH A MESSAGE ABOUT BRITAIN'S GROWING DEBT CULTURE Announcing impressive annual results for top 20 building society Scarborough,Chief Executive John Carrier also gave a message about contemporary Britain'sdebt culture. Announcing the Scarborough Group's performance for the 2005/6 financial year,today, Mr Carrier said that record asset growth and increases in mortgage andsavings balances were a direct result of a 'can do' business approach wherechange and adaptation were the norm. But he added that such a flexible approach would be even more essential infuture to enable the Society, and the financial services sector as a whole, tocater for rapidly changing socio-economic factors leading to higher levels ofdebt - particularly among young people.He commented: 'Our strategy of targeted investment in the development of newsystems and infrastructure, to enhance our client and customer service offering,has contributed to our achievement of an 8% increase in our Group assets to arecord £1.73 billion, a 10% rise in pre-tax profit to £5.6 million - and a 15%uplift in savings balances, taking these to a record £1.22 billion. However, he added: 'In modern Britain, increasing levels of personal debt arefrequently being taken for granted. Young people are borrowing an average of£20,000 to fund higher education costs before they even start work, andcontinuing house value increases are making home ownership a real difficulty formany people. 'That means traditional mortgage products will need to be adapted by more andmore mainstream lenders in the future. 'Providers like ourselves are going to have to be able to offer 'out of the box'solutions to enable people to get a footing on the first or second rung of theproperty ladder - either for first time buyers or for those who are rebuildingtheir credit history after suffering financial difficulties in the past.' 'I am delighted to announce another year of strong performance during which wehave started to offer new kinds of financial solutions, such as a new range ofcredit repair mortgages and competitive buy-to-let products to suit the needs ofevery kind of landlord.' 'Our mortgage product range will continue to evolve in the future as we respondto cater for every kind of modern customer.' Highlights of Scarborough's annual results are: •Group pre-tax profit up 10%, to £5.6 million •Society management expenses ratio reduced again, to 0.62% •Group mortgage balances up 7%, to £1.35 billion •Group assets increased by 8%, to a record £1.73 billion •Group savings balances up 15%, to a record £1.22 billion. NB. These results are prepared under International Financial Reporting Standards(see Editor's notes) NOTES FOR EDITORS: For further information, or to arrange interviews, pleasecontact 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 2006 SUMMARY 2006 2005 £m £mINCOME STATEMENTNet Interest Receivable 16.2 14.0Other Income and Charges 5.0 6.4 ____ ____ 21.2 20.4 Administrative Expenses (15.6) (15.3)Provisions - - ____ ____Profit before Taxation 5.6 5.1 Taxation (1.7) (1.6) ____ ____ Retained Profit for the Financial Year 3.9 3.5 ____ ____ BALANCE SHEETLiquid Assets 358 305Mortgages 1,346 1,260Fixed and Other Assets 29 47 _____ _____ Total Assets 1,733 1,612 _____ _____ Shares and Borrowings 1,609 1,510Other Liabilities 22 18Subordinated Liabilities 35 15Subscribed Capital 15 15Reserves 52 54 _____ _____ Total Liabilities 1,733 1,612 _____ _____ Editor's Notes International Financial Reporting Standards (IFRS)These results are our first to be published under IFRS and the accountingpolicies are in accordance with all standards and related interpretations thathave been adopted by the European Union as at 30 April 2006. Whilst profitsunder IFRS are expected to be more volatile the net impact on this year's resulthas not been material. Comparison between 2006 and 2005 is not necessarily like for like due to theprovisions in IFRS 1 First time adoption of International Reporting Standardsfor adoption of International Accounting Standard (IAS) IAS39 FinancialInstruments; Recognition and Measurement and IAS32 Financial Instruments:Disclosure and Presentation on 1 May 2005. Reconciliations showing the impact on the Group and Society opening balancesheets are shown in the full Annual Report and Accounts. BACKGROUND INFORMATION - SCARBOROUGH BUILDING SOCIETY •We are a successful regional Society with a national reach. •We are Britain's 18th largest society, with Group assets under management of circa £3 billion. •The SBS Group is made up of Scarborough Building Society, SMS Mortgage Services, which administers mortgages for major clients, and our asset trading arm, North Yorkshire Mortgages Ltd. •Established in 1846, our years of experience make us a safe and secure choice for every family's lifelong financial needs. •As an independent mutual, we put our members first through a simple range of products ensuring them a long term fair deal and a commitment to personal service. •With nine branches, covering a 'heartland' area from Nottingham in the south to Middlesbrough in the north, enhancing and expanding our customer-facing network is a key aspiration. •Through our branches, and our contact centre operation Scarborough Direct, we offer a face-to-face, telephone and web-based service to more than 180,000 mortgages, savings, insurance and credit card customers nationwide. •We are committed to transforming our local communities through our commitment to 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