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Urban Exposure posts deeper loss; plans tender offers

By BFN News | 02:46 PM | Tuesday 22 September, 2020

Residential development financier Urban Exposure posted a deeper first-half loss after it booked negative revenue and wrote down the value of its assets. Pre-tax losses for the six months through June amounted to £24.1m, compared to losses of £0.3m on-year. Exceptional costs of £17.8m reflected a write down of goodwill and brand value due to a change in strategy and costs associated with potential transactions. Negative revenue of £2.0m was recognised due to a reduction in fair values as a result of the uncertainty created by Covid-19. The company had recorded revenue of £5.3m in the previous year. Urban Exposure had in May decided to wind the company down and had engaged with a number of parties interested in acquiring its loan portfolio. 'However, the range of indicative prices offered was considered to be significantly below the loan portfolio's intrinsic value and so the approaches were not pursued further,' the company said on Tuesday. Urban Exposure narrowed the range of an expected return to shareholders from a wind-down process to 72p-to-78p, compared to 70p-to-83p previously. It said 90% of the proceeds were planned to be returned within 12 months from now, although there was certainty around the amount or timing of the returns. 'This reflects the on-going work and significant effort which has gone into maintaining and maximising value for shareholders through careful management of the group's loan portfolio,' chairman Graham Warner said. Warner said the company intended to implement a tender offer with a distribution of around £26m expected within the next two months. The total size of this distribution may increase should further loan redemptions occur prior to the announcement of the tender offer. A further tender offer would be considered for early 2021. 'In addition, the company has authority to re-purchase up to 14.99% of its issued share capital and the board will consider the use of share buy-backs to provide additional returns to shareholders,' Warner said. At 2:46pm: (LON:UEX) Urban Exposure Plc Ord Gbp0.01 share price was +2p at 63p Story provided by

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