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[June 20, 2014]
Hume Capital Appoints New Chief Executive As It Moves For Funding
(Alliance News Via Acquire Media NewsEdge) LONDON (Alliance News) - Hume Capital Securities PLC Friday said it has promoted its corporate head to succeed on a permanent basis former Chief Executive Nitin Parekh, who resigned in May amid a review of the company's financial resources which found the need for a significant capital injection into the business.
In a statement, Hume Capital Securities said Guy Peters, the current head of its corporate unit, will become chief executive with immediate effect, though he will retain overall responsibility for the corporate finance and corporate stockbroking side of its business.
Jonathan Freeman, a non-executive director, had been acting in the CEO role on an interim basis.
Hume also said it has appointed David Barrow, a former finance boss at David Taylor Partnerships Ltd, as its new finance director. Mike Frame has stepped down from the board to take responsibility of the group's risk management, but will assist in the handover.
On top of those appointments, Hume has appointed Ben Ticehurst as its operations director. Ticehurst 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.
Hume, which has already raised about GBP1.2 million in two recent equity issuances, added Friday that its review has found a need for a "significant" capital injection. The review also included an exercise to cut costs and restructure in the short-term, because its costs are "not adequately covered by the current level of revenues." It said that a group of investors has confirmed it intends to inject funds into the company that will will secure its business for the medium term, likely to be provided in several tranches. Hume said the first of these has been agreed with existing shareholder David Taylor, who has agreed to subscribe for 425.1 million new shares. This will raise just over GBP425,000 for Hume and give Taylor a 20.44% stake in the company.
In May, Hume said that it needed to restructure some of its operations in order to secure its liquidity and capital positions despite its pretax loss in the six months ended February 28 narrowing to GBP692,000, from GBP1.9 million in the corresponding period a year earlier.
Hume Capital said that the provision of further funding will be subject to a number of regulatory and shareholder consents, and added that the "precise quantum and nature" of the further tranche of that funding is still being finalised, but is likely to involve a "significant" equity injection.
New CEO Peters said the measures being taken are designed to strengthen Hume's capital base and develop a cost base appropriate to its current level of business. However, he said that the measures need to ensure that Hume has 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," Peters said.
Hume shares were untraded Friday; they were last quoted at 0.12 pence.
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