Manchester Building Society considers appeal over High Court ruling

Manchester Building Society is considering appealing a High Court judgment today awarding it just a fraction of its £49m legal claim against former auditor Grant Thornton.

The building society warned that it could also face costs relating to the case, to be determined at a hearing later this month.

The business was claiming damages from the financial services firm relating to audit services.

But the High Court announced an award of damages worth £315,345, plus interest, a sum “considerably below the amount claimed,” Manchester Building Society said in an announcement to the Stock Exchange.

Its statement said: “The Society is disappointed with the decision and is considering seeking leave to appeal.”

It said a costs hearing has been scheduled for May 18.

“The Society anticipates that it will have some liability in respect of Grant Thornton’s costs.

“Until the costs hearing is held and a determination made, it is not possible to assess the impact on the Society’s financial position, and, in particular, its capital position.

“The Society will assess the position at that time and will continue to interact with its regulators to determine the next steps.”

Today’s statement added: “The Society continues to have a strong liquidity position.”

Manchester Building Society was founded in 1922 and has one branch on Queen Street.

It has around 4,000 mortgage borrowers, as well as about 18,000 savings accounts but has not been active in the lending market since 2013 and has has no plans to re-enter the mortgage market.

Mortgage assets have reduced by approximately 40% over the last three years.