The City of London Group PLC (COLG) has reported a £1.1m loss before tax in its preliminary announcement of its final results for the year ended 31st March 2018.
The group absorbed costs of £1.1m associated with acquisitions and its application for a banking licence for Recognise.
The loss before tax is down on the £1.2m loss reported in 2017.
In a statement, Colin Wagman, chairman of the City of London Group, cited the acquisitions of Milton Homes Limited and Echo Financial Services Limited (now branded as Recognise).
He said that Recognise had been formed to provide financial services to the UK’s SME business market, subject to the successful granting of a banking licence from the regulator.
“The growth of the banking sector has accelerated over the last decade and it continues to evolve.
“The large and well-established banks have – in recent years – moved away from small business relationship management and the experience of personal touch and understanding.
“By contrast, the challenger banks – in all their various forms – have seized the opportunity and finally gained the traction they needed to fill this void.
“Recognise has validated this approach through primary external market research of SME owners and the important commercial broker network.”
Colin said that a typical lending customer for Recognise would be an established business with at least two years profitable trading, while on the deposits side – subject to regulatory approval – it would be targeting retail and business deposits with amounts up to £85,000.
“Should the business be awarded a banking licence, we believe Recognise will be strongly placed to succeed based on a combination of factors which, together, will create a robust platform for future growth and profitability.”
Michael Goldstein, CEO at the City of London Group, added that it was pleased with the positive progress it had made across the business over the past year.
“COLG is making good progress implementing its strategy of focusing on the UK SME market and on home reversions.
“We have set up Recognise, which is progressing its application for a UK banking licence, and – if successful – will focus on providing services to the UK small- and medium-sized business market.
“Meanwhile, Milton Homes has continued to produce a steady number of property reversions, which is encouraging.
“Looking forward, we are well placed to deliver on our strategic objectives and deliver value for our shareholders."
SIGN UP TO OUR NEWSLETTER TO RECEIVE MORE NEWS LIKE THIS STORY
Temenos partners with ClearBank for cloud payments
Banking software company Temenos has formed a strategic relationship with ClearBank to provide banks with a faster route to market for real-time cloud payments...
Unity Trust Bank registers 34% rise in profits
Unity Trust Bank increased profits by 34% in 2019...
Believe the hype – why explainable AI is a trend that’s here to stay
Technology has become a ubiquitous part of our day-to-day lives...
Piloting tech updates: ‘The bigger the bank, the harder it is to get anything done’
In the latest Medianett filmed roundtable session, we discussed how important technology is in the banking space, and what impact the industry expects it to have on its businesses in the future...
What banks need to know about cloud security
One of the most common perceived concerns when adopting the cloud is the issue of security...
OakNorth sees 95% increase in pre-tax profits
OakNorth Bank has announced a 95% rise in pre-tax profits in 2019 to £65.9m, up from the £33.9m recorded in 2018...
Redwood Bank signs up to Women in Finance Charter
Redwood Bank has announced that it has signed up to the Women in Finance (WIF) Charter...
Masthaven launches digital Women in Leadership programme
Masthaven Bank has launched a new Women in Leadership digital development programme for female senior leaders...
Protecting against supply chain disruption and the domino effect
Disappointingly, many UK SME business owners don’t understand their supply chains...
Confused about which Isa to choose? Hopefully this mini-guide will help…
We are now firmly in Isa season, so you’re likely to read multiple articles about the most competitive Isa products in the market and how best to make the most of your Isa allowance before the end of the tax year...
Garden shed entrepreneurs contribute £16.6bn to the UK economy
Entrepreneurs who run their businesses from garden sheds contribute £16.6bn annually to the UK economy, according to a recent study...