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Kensington Mortgages chief executive resigns

Kensington chief executive Alison Hutchinson has announced she will be leaving the firm at the end of March following its integration with parent company Investec.

The firm, which was acquired by Investec in August, will now report directly to Investec capital market division head of principle finance Andy Clapham.

Her departure follows the integration of Kensington Group within the capital markets division of Investec. She will stay on with the company until April to ensure management continuity.

Prior to Investec’s acquisition of Kensington in August, Hutchinson had begun the process of reshaping the business, reducing costs and increasing operational efficiency at every level.

In November, Kensington announced it would be withdrawing from the sub-prime market in order to concentrate on the prime market due to the impact of the liquidity crunch. It also cut around 20 per cent of its staff that same month.

In the first half of 2007, the lender saw a fall in profits and a £10m writedown of its investment in specialist lender Money Partners. Its first-half profits fell to £26.1m from £28.4m the previous year.

Kensington’s new business completions were down by 3 per cent to £1.83bn while completions for Money Partners were down by 29 per cent.

Investec head of capital markets David van der Walt says: “We are all tremendously grateful for the hard work and commitment Alison has shown during testing times for the industry. She has delivered on every level and we are very sorry to see her go, but with the integration now well advanced, we fully understand her decision to take a break. All at Investec wish her the very best for the future.”

Hutchinson adds: “The integration with Investec is almost complete and the time is right for me to move on. I am very proud to have been part of Kensington’s evolution over the last four years and its recognition across the mortgage industry as one of the top specialist lenders. Looking forward, Kensington is now in a stronger position as part of the Investec Group to chart a successful course through these challenging markets and to explore the new opportunities that will result.”

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