Shawbrook set for possible listing in 2015

The bank’s chief executive said he expected a “liquidity event” – which may or may not be an initial public offering – in 2015 to realise value for its private equity firm backer, Soft Investments.

Mr Pyman said: “Obviously it’s no secret that Shawbrook is in private equity hands and there has been significant speculation that there will be some sort of liquidity event in the near future. It is very unlikely to be in 2014, and much more likely to be 2015.”

Last week Shawbrook reported a pre-tax profit of £16.8m for the year ended 31 December 2013, up from an accounting loss before tax of £7.1m in 2012.

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Total lending reached £1.4bn, made up of commercial, second charge and business loans to small and medium-sized enterprises. Retail deposits grew from a base of £539m to £1.46bn.

Mr Pyman said the bank’s “aspiration” was to grow its balance sheet from £1.7bn to £2.5bn by the end of 2014.

Some of this growth will come from increased commercial lending following Shawbrook’s recent acquisition of Centric Commercial Finance from Cabot Square Capital, which brought £200m worth of SME loans to the group.

Shawbrook results highlights

£1bn new loan originations to SMEs and consumers in 2013

Commercial property lending grew 170 per cent to £541m in 2013 from £201m in 2012

Secured lending grew 81 per cent to £295m from £163m in 2012

Consumer lending grew 291 per cent from £29m in 2012 to £115m in 2013

Adviser view

Rob Jupp, chief executive of Essex-based Brightstar Financial, said: “There are some bright stars in the UK lending sector right now and Shawbrook is certainly a contender. It has revolutionised the commercial debt and second charge sectors with intelligent product design, sharp marketing and a ‘can-do’ attitude.”

He attributed much of the “broker-centric attitude” to a legacy to the culture “created, engrained and driven by the late, great David Johnson”, Shawbrook’s former managing director of secured lending and a pioneer in the secured and commercial lending industries, who died on 6 July 2013.