9th Mar 2020 09:01
(Alliance News) - Finablr PLC on Monday confirmed the shareholding of its Co-Chair Bavaguthu Raghuram Shetty and an associate and added that it will commission an independent review at its Travelex foreign currency unit following a cyber attack in the New Year period.
Finablr said Co-Chair Shetty and Binay Shetty's holding in the company is presently just shy of 65%. Shetty, who is co-chair alongside Michael Tomalin, owns BRS Investment Holdings 1 Ltd.
Finablr added: "On January 24, the company announced that shares held by BRS Investment Holdings 1 Ltd, representing 56% of the shares, had been pledged as security for borrowings. Dr Shetty and Mr Binay Shetty have also confirmed to the board that, prior to the January 24 disclosure, none of these shares, nor any other shares in the company held beneficially by the Shetty-family owned entities, had been pledged as security."
Finablr in February "urgently" called on the family of Co-Chair Bavaguthu Raghuram Shetty to clarify "purported arrangements" he has made with two other investors involving shares in the company.
On Travelex, Finablr said it has "now completed the recovery of all its customer-facing systems".
The company added: "Travelex has already conducted a thorough technical review to ensure the resilience of its business and the Finablr Board is now commissioning a post-incident review by an independent third-party to ensure that the findings and recommendations from the incident are also reflected in the systems and procedures of all Finablr group companies."
It's been a testing time for Finablr recently. On Monday last week, it warned of a GBP25 million underlying earnings before interest, tax, depreciation and amortisation hit following the cyber attack on New Year's Eve.
The attack led Finablr to take down its online systems to prevent a spread, forcing it to conduct business manually in branches.
Finablr will be downgraded from the FTSE 250 following an index review last week.
"The board also confirms its full support for the company's executive management team and commends their actions to maintain business operations and resilient performance in challenging circumstances," Finablr added on Monday.
Shares were 4.1% lower at 38.86 pence each in London on Monday morning.
By Eric Cunha; [email protected]
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