(Alliance News) - Urban Exposure PLC on Friday said it will not pay its proposed final dividend as it posted a modest swing to profit for 2019, adding that it will focus on winding down its loan book in 2020.
Shares in the firm which provides finance to property developers were trading 1.3% higher at 55.70 pence each on Friday morning in London, but are 19% lower since the start of the year.
For 2019, Urban Exposure posted pretax profit of GBP200,000, swinging from a loss of GBP2 million in 2018. This was driven by a rise in revenue to GBP11.1 million from GBP3.8 million as both lending on the balance sheet and the drawdown of loans increased year-on-year.
The London-based company said it will not pay the final instalment of its proposed 2019 dividend of 3.33p per share due to Covid-19 related uncertainty.
Looking ahead, it said it will focus on a wind-down of its loan book and return of capital to shareholders, predicting that the wind-down could produce net returns of 70p to 83p per share, with 80% returned within 7 to 15 months. New committed loans currently stand at GBP191 million.
It reiterated that in light of the revised strategy, Randeesh Sandhu has stepped down as chief executive and replaced by Sam Dobbyn, William Mckee will retire as chair in July. Mckee is to be replaced by former finance director for JO Hambro Capital Management Group Ltd Graham Warner. Ravi Takhar will leave the business. Andrew Baddeley and Nigel Greenaway remain as independent non-executive directors.
By Ife Taiwo; ifetaiwo@alliancenews.com.
Copyright 2020 Alliance News Limited. All Rights Reserved.