Network Data has become a quoted company – the first mortgage network to achieve this status since the inception of Financial Services Authority (FSA) regulation. On 21 September the company was admitted to the AIM market of the London Stock Exchange, with its shares priced at 40p.
Gaining public-company status has profound implications for its appointed representatives (ARs) and the future prospects for the company.
Network Data ARs have to date accumulated over 1.5 million share options in the company; built up from share options granted on every mortgage and insurance case placed through the network. A share price of 40p provides ARs with a tangible and transparent profit should they choose to exercise their options.
This contrasts with share option schemes in private companies, where the realisable value of share options can be very dubious, even assuming a buyer can be found in the first place. Being a public company, Network Data ARs can decide when to exercise their options and readily sell in the open market. The quoted share price provides them with a visible figure on which to calculate their profit and participate in the continued success of the company.
We intend to continue issuing share options to all ARs, both existing and new.
The quoted company, Network Data Holdings plc, is a holding company for four wholly owned subsidiaries – Network Data Ltd, Network Surveyors Ltd, Network Conveyancing Ltd, and HIPSTAR Ltd. All operate in closely connected areas of the property and mortgage markets.
Network Data Holdings plc is chaired by Grenville Folwell, previously deputy chief executive of Halifax plc from 1996 to 1999, and past chairman of Preferred Mortgages. Folwell’s other non-executive directorships include Partnerships UK plc, Compass Finance Group plc, Software Solutions Partners Limited and the Institute of Public Finance Limited.
Richard Griffiths, chief executive of Network Data, said:
We have steadily developed a leading position in the mortgage and insurance broker network market and are well placed to build upon this success. We also believe Home Information Packs (HIPs) represent a potential opportunity, given our ability to establish a network in a highly complementary area of the property market. An AIM listing gives us additional profile and credibility and will enable us to attract high calibre staff.
