The Group has faced falling stock prices following the resignation of chief executive John Maltby on 23 March. It has now issued further details of the state of its business in its Q1 trading results in the midst of acquisition speculation.
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The results showed the Group faced increasing pressures, with margins being squeezed on second charge deals from 8.6 per cent in Q1 2006 to 6.7 per cent in Q1 2007. Its mortgage book also fell to £6.9 billion in February 2007 from £7.2 billion in November 2006.
However, Ian Giles, director of marketing at Kensington Mortgages, said: “Kensington has to disclose results as it is listed on the FTSE. Yet, all we’re doing is reflecting the state of the non-conforming market.”
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While he confirmed Kensington was in acquisition talks, Giles said Kensington could choose to remain independent. “Kensington is still a profitable business, with a robust model. The situation is unfortunate and it is no one’s interest to let it drag on. We will make a statement on our future strategic direction in May. However, it will still be business as usual.”
