The deal was announced last Monday and saw Genesis founders Nigel Gardner, business development manager, and Barry Robson, managing director, each sell their 50 per cent stake in the company. They will both continue in their current roles along with the rest of the Genesis management team.
According to Peter Beaumont, sales and marketing director at Mortgages plc, the acquisition of Genesis is part of a long-term strategy of building up the Mortgages plc Group. He indicated that further announcements could be expected shortly.
Commenting on the acquisition, Beaumont said: “The company will still be independently run, with only Tim Cooley, chief financial officer at Mortgages plc, sitting on the board.”
He added that Mortgages plc saw Genesis as an extra income stream as well as a means of distribution.
Robson admitted the decision to sell the business had been taken about 18 months ago and that there had been serious interest from a number of other parties, though he refused to comment on those involved.
He was also keen to reassure other sub-prime lenders on the Genesis panel that there would be no conflict of interest. “We spoke with the lenders on our panel and there has not been one jot of adverse reaction,” he said. “The deal means we now come from a position of greater financial strength when making our proposition to brokers and packagers.”
Commenting on the development Stuart Aitken, director of credit at Southern Pacific Mortgage Limited (a Genesis lender panel member) said: “It does mean you have to think about your products. But we have products that Mortgages plc don’t, so there should be no conflict of interest.”
Meanwhile Genesis has also announced a series of workshops for packagers, offering information on its regulatory proposition. Interested parties should contact Wendy Hill on 01832 281140.
