Share Search
Visit the Share Search
Urban Exposure pulls final dividend, Covid-19 impacts inevitable
17th Apr 2020 10:22
(Sharecast News) - Asset manager Urban Exposure cancelled its proposed final dividend on Friday, stating that it would "inevitably" be hit by Covid-19 and its wider impact on the real estate market.
Urban Exposure pulled its 3.33p per share dividend and began to take other cash conservation measures - including lowering headcount and reducing executive salaries by 10%.
"Naturally the current environment and probable reduction in new lending will have an impact on the company's performance for the current financial year," said UE
"Given the unprecedented nature of the COVID-19 situation, which is likely to remain uncertain for some time, the company is suspending its FY 2020 guidance."
For the year ended December 2019, Urban Exposure said it had managed to carve out a small pre-tax profit of ?200,000, on the back of revenues of ?9m.
The AIM-listed firm also revealed it had received multiple enquiries regarding the non-completion of an agreed transaction with Pollen Street's Honeycomb regarding the potential sale of its loan book.
"The company intends to consider all credible proposals which may be forthcoming, but there can be no guarantee that any proposals would lead to a satisfactory deal, particularly given current market conditions," said Urban Exposure.
"As announced previously, the company is pursuing its claim against Honeycomb Holdings Limited and connected entities in respect of the breach of the agreement for the sale of Urban Exposure Lendco Limited."
As of 1020 BST, Urban Exposure shares were up 1.11% at 31.85p.
Urban Exposure pulled its 3.33p per share dividend and began to take other cash conservation measures - including lowering headcount and reducing executive salaries by 10%.
"Naturally the current environment and probable reduction in new lending will have an impact on the company's performance for the current financial year," said UE
"Given the unprecedented nature of the COVID-19 situation, which is likely to remain uncertain for some time, the company is suspending its FY 2020 guidance."
For the year ended December 2019, Urban Exposure said it had managed to carve out a small pre-tax profit of ?200,000, on the back of revenues of ?9m.
The AIM-listed firm also revealed it had received multiple enquiries regarding the non-completion of an agreed transaction with Pollen Street's Honeycomb regarding the potential sale of its loan book.
"The company intends to consider all credible proposals which may be forthcoming, but there can be no guarantee that any proposals would lead to a satisfactory deal, particularly given current market conditions," said Urban Exposure.
"As announced previously, the company is pursuing its claim against Honeycomb Holdings Limited and connected entities in respect of the breach of the agreement for the sale of Urban Exposure Lendco Limited."
As of 1020 BST, Urban Exposure shares were up 1.11% at 31.85p.