Welcome to the Rpoints Forums.
+ Reply to Thread
Page 1 of 3 1 2 3 LastLast
Results 1 to 10 of 30
Like Tree17Likes

Thread: Holmesdale BS - what is all this about?

  1. #1
    HB
    HB is offline
    Moderator HB will become famous soon enough
    Join Date
    Apr 2000
    Location
    Bagger Towers
    Posts
    5,439
    Rep Power
    119

    Holmesdale BS - what is all this about?

    An idle moment passed and I picked up a copy of the Holmesdale BS Report 31 March 2014

    They made a loss of £190k last year, hit by an "exceptional expense" of £170k (see below), and there were also provisions of over £100k for debts. This goes some way to explaining what happened to their savings accounts rates during the year.

    But what is this "exceptional expense"?

    Last June the Board initiated Project Spark following further
    declines in profitability and began a thorough review, with our
    professional advisers, of the Society’s strategy, systems, people
    and processes. While profitability is never our prime motive,
    we need a certain level of profit to continue the growth of our
    capital and create the resources for new developments, such as
    our website and building refurbishment. As a result, it became
    apparent that the existing approach would not work in the new
    mortgage market and a material change was required. Addressing
    this resulted in an exceptional cost due to the professional
    fees incurred.
    So the members incurred almost £200k professional fees for what exactly?

    Will we ever see value-for-money from this exercise?
    planteria likes this.
    Sterling Forever.

  2. #2
    Contributor 1User
    Join Date
    Nov 2003
    Posts
    211
    Rep Power
    0
    HB

    I've always found Holmesdale a pretty useless society. Always poor rates. However, the scheme was intended to boost mortgage lending and, according to the Holmesdale, has already shown signs of success: Increased lending. Value for money? I looked up a few statistics:

    Holmesdale has about twenty staff of which about SIX are directors! Thirty percent of staff are directors...

    As you point out the society made a loss after expenses and provisions but they "boast" the underlying profit was £126,000.

    So a twenty staff Building Society with thirty percent of those staff directors still needed to bring in a "small team" to tell them what to do? Seems like they are unfit for the job - especially when the cost of the "experts" easily exceeded a whole year's "profits."

    1User
    planteria likes this.

  3. #3
    HB
    HB is offline
    Moderator HB will become famous soon enough
    Join Date
    Apr 2000
    Location
    Bagger Towers
    Posts
    5,439
    Rep Power
    119
    Increased lending? Must be higher value loans then.

    2013: 1075 borrowers
    2014: 1056 borrowers

    Looking good so far!

    (source: kpmg)
    Sterling Forever.

  4. #4
    Expert planteria will become famous soon enough
    Join Date
    Apr 2000
    Location
    going down the wednesbury road
    Posts
    3,991
    Rep Power
    104
    Quote Originally Posted by HB View Post
    This goes some way to explaining what happened to their savings accounts rates during the year.
    which was?

  5. #5
    HB
    HB is offline
    Moderator HB will become famous soon enough
    Join Date
    Apr 2000
    Location
    Bagger Towers
    Posts
    5,439
    Rep Power
    119
    Several rounds of cuts resulting in their accounts being some of the most uncompetitive in the sector.

    They are relying on inertia similar to how a plc would, to cream off some extra profit, keen to fill the black hole caused by this exercise in paying professional fees and provisions for debt.

    Their letter to me on the last round (I have an old ISA) implied their account was amazing: 'if you transfer it out you'll never be able to open it again', clearly keen to retain the funds but at the cheapest possible price!

    Who was the company that benefitted from these 'professional fees'? I do hope it was not any firm connected with the directors, or their families?
    Last edited by HB; 5th November 2014 at 02:09 PM.
    planteria likes this.
    Sterling Forever.

  6. #6
    Expert planteria will become famous soon enough
    Join Date
    Apr 2000
    Location
    going down the wednesbury road
    Posts
    3,991
    Rep Power
    104
    Quote Originally Posted by HB View Post
    I do hope it was not any firm connected with the directors, or their families?
    so do i. i have been a member of Holmesdale for several years. i find the service to be good, but i am never tempted by any of their rates..so i see what you mean.

  7. #7
    Contributor Dr Who
    Join Date
    Apr 2000
    Posts
    880
    Rep Power
    0
    Low interest rates, how else do you expect them fund the tarting up of their office?

    http://www.theholmesdale.co.uk/files...etter_2014.pdf

  8. #8
    Expert planteria will become famous soon enough
    Join Date
    Apr 2000
    Location
    going down the wednesbury road
    Posts
    3,991
    Rep Power
    104

    Lightbulb

    Quote Originally Posted by Dr Who View Post
    Low interest rates, how else do you expect them fund the tarting up of their office?

    http://www.theholmesdale.co.uk/files...etter_2014.pdf
    if the society was Actually being run in our interests, perhaps the office would be done up, making a nice Reigate branch to be sold to the highest-bidding alternative Building Society.

  9. #9
    HB
    HB is offline
    Moderator HB will become famous soon enough
    Join Date
    Apr 2000
    Location
    Bagger Towers
    Posts
    5,439
    Rep Power
    119
    I SMELL A RAT

    Exceptional expenses relating to "PROJECT SPARK"

    Consultancy fees £98,802
    Recruitment fees £48,995
    VAT £29,560

    Include in the above are consultancy fees of £57,000 + VAT charged by TIPTREE HOUSE LTD

    One of the directors of Tiptree is MARK THOMPSON

    He is a Director of Holmesdale BS and was appointed Chairman in 2013

    According to Holmesdale BS he is also a "Major Shareholder" in Tiptree

    This kind of deal demands further investigation.
    planteria likes this.
    Sterling Forever.

  10. #10
    Junior Member chuckieegg is an unknown quantity at this point
    Join Date
    Feb 2012
    Posts
    7
    Rep Power
    21
    HB, this is an impressive bit of investigative journalism. Have you thought about contacting a journo?


 

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts