Our clients
Paragon
We manage the financial PR for Paragon, the UK-listed buy-to-let mortgage provider. In November 2007, the company announced a stand-by emergency rights issue in response to credit crunch-related funding difficulties. Three months later, the rights issue became reality as Paragon tapped its shareholders for £287 million. The challenge was to protect Paragon’s reputation and prevent the news being interpreted as “another Northern Rock”.
Our strategy was to brief key financial journalists but avoid engaging with the broader media. By doing so, we managed to present the rights issue as a technical, esoteric story suitable for business sections rather than front pages. In order to limit the story’s shelf life, we resisted the temptation to correct inaccuracies. Essentially, we wanted to starve the story of oxygen rather than fan its flames.
The rights issue – the first in a series by the financial services industry – secured 100% take-up, allowing us to reinforce the underlying strength of Paragon’s mortgage business. Its success also meant that there was little appetite for follow-up coverage and, just days later, the story died. The experience established us as experts in communications surrounding rights issues.