Davies, Rhydian

Davies, 
Thu 9/11/2003 12:04 PM (GMT n)
all Pro RMS South Cor

 

 

. [No Sublecl]
Attacliments: Asset register -- Propeny.xls

Team
Prolecl 'Dash for Cash'

As discussed at our last Managers meeting there is an imperalive lo nelp South and R55
deliver tneir numbers lo support

- tne Soutanca learn
- our pride in delivering
- our bonuses

Soutn and R05 are ootn Ialgeled on a Financial basis any lees taken are amoniseo and
lhey do not leei tne lull ellect). At tnis time olyear tnerelore the only signilicanl impact lnat can
be made will be in Cash lees (exit/restructuring) and GBM

South is currently [Gm short and could well be [Sham shorli given both a pool August
and running shol'liall on income lines

We discussed 22m bul ilwe pilcn and deliver 22m lhen will not nave made a
meaninglul impacl in helping Soulhi despite all our hard work.

Ii we want to help and to have made a meaningful conirioulion lo Soulh then we will need Io
aim (or more

As such I Ihink we need to aim (or Earn This is no! to include anything from either oiihe Simon
deals, This is going to be very hard oul I do Ihink is achievable and should make a serious
impact, In addition have agreed a higher 24m goal (i e. exlra Elm) which would include

anytning nd I can Iry and create rrom Sutton (Credil are going to need lo 'hlace
Ihemselves 

very much an aspiration/goal and a Soulh wide learn efforl Io all do lhalwe can.

So lnis is wnal we are going to do

To monitor our progress we are going to create a Blue Peter appeal (located on
snared Reading drive as an extra on tne lees and sanctions) wnicn all can access.
On tnis will be ootn WIP and achievemenls

GBM

Chas nas a target list (below) which is a great lailorni lo work lrom, A number ol you have
your hands lull witn Flousebuildersi elc and sub nas kindly agreed to ioin lorces
across tne Soulh and neip

you with any opportunities. He can sit in the background or move out lront with both credit and
oust depending on what you want/need.

 

Ann--1r
Propmch-

also be forwarding a base rate loan list to-and yourselves to consider opportunities olr
the pack of Base to LIBOR (see pelow)

Cash Fins

This will principally Dome in lhe (mm a! Restructuring/Exit lees Id like you to think of ail those

customers where:
- They have preached covenant
- Could bleach covenant (ilrevalued now)
- Have or likely to have excess positions
- Need exlla support
- Where we may have an exit lee that we could 'ouy out'

Where we can identity these situations (and others) can you liaise with either me or your
Regional Head
to discuss strategy.

ld also like you to consider any ordinary lees and whether these could be classified as
'restructuring' {easy etc

Where we take such feesy can we act as (allowing;

- LIBDR . On the loans admin lorm use 'slrucluring' on the drop down box
- BASE - On pack olnoe use the Fees and Commission code lam Commitment fees'
in the event oi any doubt please give Alan Skivinglon a shout

Please update the 'Blue Peter' appeal sheet with opportunities and then completions as
you go along

Base to LIEOR

This project has a real henelit to South and Relay provides GEM opportunities and puts
us in better stead for next year (see below).

For those in any doubt that Base to LIBOR isn't important and that the noise will go
away. I can advise you that have heard today that transler pricing on Base rate lending
has now to be increased lrorn eoop to esop. Wef 1/9/Dam

i,e. it you are lending at your return in real terms is are lending at
B+75bp you are running at a loss.

Currently this is only impacting South and ROE out I can also tell you that there are
plans to;

- Target you next year on Fl rather than Ml (Le. in line with South and UKCB) .cheerio
funny moneyl

- You will be charged at portfolio level with the tull impact ot as ps wet. 1/1/09 . . hello
nightmarell

It is in our interest therefore to ramp this up even turlher to:

- t-telp South/ROE this year
- t-telp yourselves and me tor next year

We also need to remain tull steam ahead' on new business. OriginalionlBD have delivered
some great deals this year in addition to having a decent pipeline The addition ot new loans
and customers is pivotal to us retaining a ropust level of pase income in our book to give us a
chance ot even getting hear to our targets tor 08/09.

ltully acknowledge that the above represent new and difficull challenges, put as have always
said the market tor us has chan%ed and we need to adapt and use our consideraple 'deal dolng'
skills to deliver on teslrumuresi EM and pricing increases

It you think that a restruclute/Base to project islwas painful id like you to rettect on how
paintut doing a deal in the good times is You should be expending at least the energy
commitment and tenacity on these as you have all shown on doing the unpelievaply difficull
deals you have all delivered over the years

These are tough times and know you are all feeling it. A pig thanks tor your ongoing eftorts
and please continue to he positive in the palarice otdeliveririg income for our business and
sup orlihg our

cus omers.



Davies
Head ot Property Constructlon South Region. Corporate