Kensington confident in face of takeover rumours

Kensington Mortgages has responded to comments made about a possible buyout from private equity firm Permira.

Recent press reports claim Permira was mulling over a 500m approach for the group, but has backed off from a formal bid after failing to put together a financing package, especially in light of Kensington’s rising share value.

Kensington Group’s share price stood at 870p at the time of going to press. Alison Hutchinson, managing director of Kensington Mortgages, says the price demonstrates the company’s strong marketplace position.

She says the group has never had a ‘for sale’ sign up, but doesn’t rule out such a future occurrence.

She says: “We are continuing to grow and are on track to be 50% up in profit, which is in line with expectations.

“You can never say never, but we are just enjoying our position in the market at the moment and our continued growth.”

Kensington Mortgages, which was added to Advantage Home Loans’ branded lending panel just a few weeks ago, has also reaffirmed its intentions with the mortgage arranger.

Hutchinson says: “Our products are strong and as long as we continue to deliver what our customers want, there is no reason we should be worried about another lender entering the market.”

She says Kensington’s relationship with Advantage will not change unless the arranger altered its business model.