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Long-term future of Manchester BS ‘materially uncertain’

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  • 21/03/2016
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Long-term future of Manchester BS ‘materially uncertain’
Manchester Building Society has issued a warning on the long-term future of the society, explaining that its full-year accounts for 2015 are likely to indicate ‘a material uncertainty’.

In a statement published by the society on the London Stock Exchange, it said it had no plans to re-enter the mortgage market “in the immediate future”. The society ceased lending to new customers in 2013.

Manchester BS added that directors at the firm would be considering the society’s future strategy over the next few months.

It said: “The Directors expect the accounts to refer to a material uncertainty surrounding the long-term future of the Society given the continuing decline in the scale of operations.

“The Society has not been active in the lending market since 2013 and has no plans to re-enter the mortgage market in the immediate future. The Society’s mortgage assets have reduced by approximately 40% over the last three years. The Society’s liquidity position remains strong.”

The society filed a negligence claim against audit and account firm Grant Thornton last year, after it was forced to restate its 2011 results which turned a small profit into a loss of £21.9m for the year, due to poor and incorrect advice given on how to account for interest rate swaps. Grant Thornton was later forced to pay out £975,000 for its shortcomings in a settlement with the Financial Reporting Council.

Manchester Building Society is expected to issue its 2015 accounts before the end of March.

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