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Urban Exposure shares rise as it reports strong lending
31st Dec 2019 08:59
(Sharecast News) - Urban Exposure updated the market on its lending on Tuesday, reporting that it had completed new committed lending of £498m during the year ending 31 December.
The AIM-traded firm said that as a result, it had now committed more than £1bn of new lending since admission in May 2018.
A further £268m of loans were said to be in the advanced stages of execution, and were expected to close in the first quarter of 2020, having been delayed from closing in the fourth quarter of 2019 primarily due to the impact of political and economic uncertainty.
"Due to the drawdown profile of these loans the impact of this delay on 2019 revenue is expected to be negligible," the board said in its statement.
"The company is pleased to have continued to complete loans with an excellent risk profile to highly experienced borrowers in diverse geographic locations across the UK including Manchester, Luton, Derby, Glasgow and Wembley.
"Furthermore, the company has a strong additional pipeline of loans going into 2020 of around £686m."
Urban Exposure said it expected that operating costs for 2019 would be lower than previously anticipated, primarily due to reduced staff costs arising from both lower variable remuneration costs and hiring fewer people than previously budgeted.
Going forward, the company said it expected to reduce its operating cost base to around £9.5m for 2020, which would support its profitability in the 2020 financial year.
"Further to the announcement on 15 November, the board is continuing to review a number of different proposals with regards to the company and will update the market in due course," the board added.
At 0851 GMT, shares in Urban Exposure were up 6.37% at 71.8p.
The AIM-traded firm said that as a result, it had now committed more than £1bn of new lending since admission in May 2018.
A further £268m of loans were said to be in the advanced stages of execution, and were expected to close in the first quarter of 2020, having been delayed from closing in the fourth quarter of 2019 primarily due to the impact of political and economic uncertainty.
"Due to the drawdown profile of these loans the impact of this delay on 2019 revenue is expected to be negligible," the board said in its statement.
"The company is pleased to have continued to complete loans with an excellent risk profile to highly experienced borrowers in diverse geographic locations across the UK including Manchester, Luton, Derby, Glasgow and Wembley.
"Furthermore, the company has a strong additional pipeline of loans going into 2020 of around £686m."
Urban Exposure said it expected that operating costs for 2019 would be lower than previously anticipated, primarily due to reduced staff costs arising from both lower variable remuneration costs and hiring fewer people than previously budgeted.
Going forward, the company said it expected to reduce its operating cost base to around £9.5m for 2020, which would support its profitability in the 2020 financial year.
"Further to the announcement on 15 November, the board is continuing to review a number of different proposals with regards to the company and will update the market in due course," the board added.
At 0851 GMT, shares in Urban Exposure were up 6.37% at 71.8p.