Information  X 
Enter a valid email address

Urban Exposure warns of 'significantly reduced' earnings

By BFN News | 07:38 AM | Friday 09 November, 2018


Residential development finance supplier Urban Exposure warned it expected to report 'significantly reduced short-term income' after it decided to write higher-quality loans. Urban Exposure said it had experienced positive trading momentum, with continued growth in its market presence. Demand for its asset management strategy had also been 'significant', it added. 'Arranging and executing loans on balance sheet to be refinanced through asset management funding lines -- rather than simply maintaining those loans on balance sheet -- will carry lower immediate profits than expected,' Urban Exposure said. The move, however, provided an opportunity to execute an asset management strategy earlier than originally planned. 'Furthermore, higher-quality loans have resulted in slower drawdowns,' it added. 'As a result, the company expects significantly reduced income in the short term.' 'However, the potential for the company to build a larger asset management business is expected to result in strong growth in the medium term and earnings are protected through minimum earnings clauses.' Story provided by StockMarketWire.com

a d v e r t i s e m e n t