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Urban Exposure scraps final dividend; receives enquiries from potential investors

By BFN News | 07:47 AM | Friday 17 April, 2020

Specialist developer finance provider Urban Exposure scrapped its proposed 2019 final dividend and said it had received approaches from potential investors after a restructure proposal with Pollen Street Capital fell through. The company had planned to pay a final dividend for 2019 of 3.33p per share. 'Inevitably the business will be impacted by Covid-19 and the issues that it is causing across the real estate market, and beyond in the wider economy,' Urban Exposure said. Other cash conservation measures included reducing headcount and reducing executive salaries by 10%. 'We are communicating with borrowers on a weekly basis, and actively managing issues that may arise, providing support and advice as appropriate regarding any impact of the pandemic on individual construction sites,' the company said. For the year through December 2019, Urban Exposure said it achieved a small pre-tax profit of £0.2m, on the back of revenue of £9.0m, which was stated after a £2.3m write down of a legacy receivable. The company said it had received a number of enquiries following its announcements regarding the non-completion of an agreed transaction with Pollen Street's Honeycomb in respect of 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.' '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.' Story provided by

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