City of London Group (AIM: CIN) is focused predominantly on lending to the SME market through its subsidiary, Recognise Bank.
In 2020, the Company raised £27 million to launch Recognise Bank which received AwR in November. The Board and leadership team have extensive experience in the financial services arena and expect to receive full authorisation for Recognise later in 2021.
Recognise Bank was formed to provide financial services to the UK Small and Medium Enterprises sector and the retail and business savings markets. It will target an underserved but growing SME segment offering a relationship-led, digitally enabled proposition.
The bank’s technology-driven operating base, partners with leading fintech platforms to create a SME service using best-in-class technology. Recognise has a highly experienced team with over 280 years’ experience of banking. In five years’ time it aims to reach 54,000 depositors and 5,100 borrowers.
Colin Wagman (NE Chairman)
50+ yrs sector experience. Ex Dep Chair & CFO of Delancey. NED of Alpha Plus Holdings Plc and Minerva Ltd
Michael Goldstein (CEO)
Appointed to the board in 2017. Former Senior Audit partner at BDO LLP. Also CEO of a large family property business.
NED’s: Nyreen Llamas, Ruth Parasol, Andy Crossley, Paul Milner
| P&L | 31 Mar 2020 £~000 | 31 Mar 2019 £~000 |
|---|---|---|
| Revenue | 7,055 | 7,510 |
| Cost of Sales | (313) | (14) |
| Gross Profit | 6,742 | 7,496 |
| Loss for the Year | (9,730) | (3,566) |
| Balance Sheet | 31 Mar 2020 US$~000 | 31 Mar 2019 US$~000 |
|---|---|---|
| Cash & Cash Equivalents | 7,219 | 15,760 |
| Total Assets | 100,452 | 112,163 |
| Total Liabilities | (75,386) | (77,989) |
| Net Assets | 25,066 | 34,174 |
Directors
Other
FT (Feb 2021): Small UK businesses are ‘running out of cash’, chancellor warned
“Debt levels are rising fast as entrepreneurs face toughest months yet of the pandemic.”
“Cash levels are depleted and debt loads have risen fast for companies with high fixed costs but zero revenues, leading to urgent calls from the UK’s business lobby groups, including the CBI and the British Chambers of Commerce, for immediate and sustained financial support from the chancellor Rishi Sunak.”
City AM (Feb 2021): Recognise owner welcomes four new director
“The City of London Group appointed four new independent non-executive directors this week, all from the challenger Recognise Bank. Joining with immediate effect, new directors Philip Jenks, Richard Gabbertas, Louise McCarthy and Moorad Choudhry move to the parent company of Recognise Bank, the City of London Group (COLG).Chairman of COLG Colin Wagman said: “We are immensely proud to be able to attract this calibre of expertise to our board and it is a testament to our ongoing strategy and business model as a challenger in the SME banking market that we are able to do so.”
