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Kensington reveals profits dip ahead of £283m buyout vote

Kensington saw a fall in profits and a £10m write-down of its investment in specialist lender Money Partners in the first half of this year.

The company says first-half profits fell to £26.1m from £28.4m last 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.

The write-down of the value of its 57 per cent stake in Money Partners came after a strategic review.

The results come a week before Kensington shareholders vote at an extraordinary general meeting on whether to accept a £283m bid for the company from Investec.

Kensington announced in May that it had reached agreement with the South African firm on the terms of a recommended offer. In the same month, Kensington said it expected total revenues for this year to be significantly below 2006.

The lender also said it would implement a cost-reduction programme aiming to deliver annualised savings of around £8m after two years. This will involve redundancies although Kensington Group chief executive Alison Hutchinson will not comment on how many of its 300 staff will be affected.

She says: “As expected at the time of our trading statement in May, Kensington’s results for the first half reflect increased competition in the UK, lower early redemption charge income and the financial impact of certain actions required to improve the business model following the strategic review.”


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