Settlement of a Legal Dispute

RNS Number : 9386V

Cenkos Securities PLC

18 January 2013

 



18 January 2012

Cenkos Securities plc ("Cenkos" or "the Company")

Settlement of a Legal Dispute

As disclosed in note 11 of our 2012 Interim Report, a cash-settled shadow equity scheme was set up in 2009 for the Cenkos team based in Edinburgh. The Company re-organised this office in 2010 resulting in the cessation of this arrangement and a number of staff leaving the Company. A provision for this re-organisation was established in 2010 to cover any resultant liabilities. The Company was in dispute with a former member of staff on this issue who issued a claim against the Company in June 2012 for £3.04m. At the time, the Board noted that they believed that the size of this claim was frivolous. The Company has now settled this dispute with the former employee.  Although Cenkos believes that the amount claimed was in excess of what might realistically have been recovered by the former employee had the matter ever proceeded to trial, it accepts that the claim itself was not made frivolously. The terms of the settlement are confidential. The Company is not aware of any residual claims arising from this re-organisation.

Enquiries:

Jim Durkin                                                        020 7397 8900

Chief Executive Officer

Cenkos Securities plc

David Rydell/Duncan Mayall                        020 7861 3232

Pelham Bell Pottinger                                                     

Nick Donald                                                     020 7991 1504

HSBC (Nomad)                                                                 

 

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