Hume Capital Securities PLC Board Changes, Placing and Update (0940K)

TIDMHUME

RNS Number : 0940K

Hume Capital Securities PLC

20 June 2014

20 June 2014

Hume Capital Securities plc ("Hume" or the "Company")

Board Changes, Placing and Update

Board Changes

Further to the announcement of 8(th) May 2014, the Board is pleased to announce that it is making the following Board changes:

Guy Peters, who is currently Head of Corporate at Hume, will be joining the Board and assuming the role of Chief Executive Officer with immediate effect, whilst retaining overall responsibility for the corporate finance and corporate stockbroking side of Hume's business. Guy joined Hume in May 2013 and has extensive experience as a corporate adviser and corporate broker to quoted companies over many years, predominantly in the small and mid-cap space.

Guy originally trained and practised as a City solicitor with Herbert Smith before moving into merchant banking as a corporate financier with Lloyds Merchant Bank and then subsequently integrated investment banking for 10 years at Albert E Sharp, which was acquired by Old Mutual and subsequently itself acquired Greig Middleton, becoming Old Mutual Securities. After its sale to Arbuthnot and renaming as Arbuthnot Securities, Guy left to join Shore Capital, where he stayed for a further 6 years before joining Seymour Pierce in 2010 and then subsequently Hume Capital in 2013.

Jonathan Freeman, who became Interim Chief Executive Officer on 8(th) May 2014, now returns to being a non-executive director.

David Barrow will join the Board of Hume with immediate effect as Finance Director. Mike Frame has stepped down from the Board and will remain with the Company with responsibility for risk management. Mike will also assist David in the handover of his finance, systems and controls responsibilities. David, a Chartered Accountant, has significant experience in refinancing and restructuring and has worked closely with David Taylor (a significant shareholder in Hume) in a number of his businesses over the past few years. Prior to working with David Taylor, David Barrow qualified as a Chartered Accountant in 2008 before moving into industry. He led the budgeting and forecasting functions in the finance department of Victrex PLC between 2010 and 2012, subsequently worked as Finance Director designate for Recycling Lives Ltd, a privately owned recycling and waste management company, before joining David Taylor Partnerships Ltd and various of David Taylor's investee companies as Finance Director in March 2013.

Ben Ticehurst will also join the Board of Hume as Operations Director. Ben has spent much of his career in local government, with a particular focus on business improvement, cost reduction and commercialisation. Ben has worked at an executive level in UK local authorities, including a position as Deputy CEO and previously Director of Children Services at Peterborough Council. Over the last 5 years he has, in conjunction with an associate of one of Hume's major investors, undertaken consultancy roles in his own companies largely focussed on the development and commercialisation of local authority businesses.

Placing

As stated in the 8(th) May 2014 announcement, the Board is currently undertaking a review of the Company and is looking to ensure that the Company's financial resources are adequate to fund the business for the foreseeable future. This review has identified the need for further significant capital injection. The Board has been discussing the capital requirements of the business with a group of investors who have confirmed that they intend to provide the requisite funding to secure the Company's business for the short and medium term, which is likely to be provided in several tranches, the first of which is set out below. The provision of further funding will be subject to a number of regulatory and shareholder consents and the precise quantum and nature of the further tranche of that funding is still being finalised, but is likely to involve a further significant equity injection. The Board's review of the business also includes an exercise to ensure that the Company's costs reflect its current business and pipeline, which will include some cost cutting and restructuring measures in the short term, as costs are not adequately covered by the current level of revenues.

The Board is pleased to announce that Mr David Taylor, an existing shareholder of Hume and further details of whom are set out below, has agreed to subscribe for a total of 425,085,889 new ordinary shares of 0.1p each in the Company ("Ordinary Shares") at par, raising gross proceeds of just over GBP425,000 for the Company (the "Placing"). The Placing fully utilises the remainder of the Company's current authorities to issue new share capital. The Placing will take place in three tranches of 150,000,000 Ordinary Shares, 150,000,000 Ordinary shares and 125,085,889 Ordinary Shares with settlement on 26(th) June 2014, 16(th) July 2014 and 25(th) July 2014 respectively. Following the Placing, Mr Taylor will have an interest in approximately 20.44% of the Company's issued share capital. Application will be made for:

a). 150,000,000 new Ordinary Shares to be admitted to trading on AIM in which dealings are anticipated to commence on 27(th) June 2014;

b). 150,000,000 new Ordinary Shares to be admitted to trading on AIM in which dealings are anticipated to commence on 17(th) July 2014; and

c). 125,085,889 new Ordinary Shares to be admitted to trading on AIM in which dealings are anticipated to commence on 28(th) July 2014.

David Taylor, CBE, has considerable experience in the property development sector having been Chief Executive of Enterprise plc, AMEC Developments Limited and having run English Partnerships (a government agency) for six years. More recently he has been Executive Chairman of BL Canada Quays, a joint venture with British Land plc. David is currently a Director of the Olympic Development Authority (ODA), Chairman of Energy 10 Limited (a waste to energy company) a Director of Money and Co and Chairman of all the companies listed in the David Taylor Partnership Group, whose website can be viewed at www.dtp88.com.

Outlook

The Company's business will remain focused on Stockbroking, Wealth Management and Corporate Advisory business and the Board intends to grow the business substantially in the medium term.

Commenting on the above, Guy Peters said:

"The measures we are taking are designed to ensure that we are in a strong position to achieve our aims, with a strengthened capital base and a cost base appropriate to the current level of business, but with the ability to expand as new business comes through. We are grateful to all of our clients, market counterparties, business introducers and stakeholders for their substantial ongoing support. The outcome of the plans we have outlined should place us in a substantially better position to service our clients' requirements in the future."

The information required by Schedule 2 paragraph (g) in relation to each of Guy Peters, David Barrow and Ben Ticehurst is as follows:

 
     Director's Full Name              Current Directorships/              Directorships/Partnerships 
      and Age                           Partnerships                        within the last 5 years 
--------------------------------  ----------------------------------  ------------------------------- 
     Guy Richard Peters                Hume Capital Global                 Shore Capital Markets 
      (aged 52)                         Limited                             Shore Capital & Corporate 
                                        XCAP Securities Limited             Limited 
--------------------------------  ----------------------------------  ------------------------------- 
     Guy Peters owns 6,666,667 ordinary shares in Hume through his 
      SIPP. 
----------------------------------------------------------------------------------------------------- 
     David Paul Barrow (aged              David Taylor Partnerships 
      31 )                                 Limited 
                                           Allied Lighting Limited 
                                           Carbon Numbers Limited 
                                           Eco Control Systems 
                                           Limited 
                                           Nu-Ven Ltd 
                                           Endo Enterprises (UK) 
                                           Limited 
                                           Endo Enterprises Limited* 
                                           ProGreen (Properties) 
                                           Limited 
 
                                           Xplore4 Technologies 
                                           Limited 
-----------------------------------  -------------------------------  ------------------------------- 
     *David Barrow was the part-time finance director of Endo Enterprises 
      Limited. The company was placed into administration on 1(st) 
      November 2013 with a deficit to creditors of GBP195,060.52.. 
----------------------------------------------------------------------------------------------------- 
     Benjamin Galbraith Ticehurst         Right Brain Ltd                  Options Enterprises 
      (aged 52)                                                             Limited** 
                                                                            Groovy Situation Limited 
                                                                            Cambridge Enterprise 
                                                                            Services Limited 
                                                                            V4 Services Limited 
-----------------------------------  -------------------------------  ------------------------------- 
     **Ben Ticehurst was a director of Options Enterprises Limited, 
      a vehicle for supplying business transformational services to 
      local authorities. Due to a change to its contracting environment, 
      it became impossible to trade. The company was placed into creditors' 
      voluntary liquidation on 30(th) January 2012 with a deficit 
      to creditors of GBP81,596. 
----------------------------------------------------------------------------------------------------- 
 
 
 

Save as disclosed above, there are no further disclosures required to be made in respect of the appointments or the Placing under Schedule 2(g) or Rule 17 of the AIM Rules for Companies.

Enquiries:

Hume Capital Securities plc

Guy Peters (Chief Executive Officer) 020 3693 1492

Grant Thornton UK LLP, Nominated Adviser

Philip Secrett /Melanie Frean/ Jamie Barklem 020 7383 5100

This information is provided by RNS

The company news service from the London Stock Exchange

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