26th Feb 2021 14:33
ASA International Group PLC - Weybridge, Surrey-based microfinance lender - Says results for 2020 will be below its expectations due to "challenging" environment, with collection efficiency recovering at a slower pace than anticipated in India and, as result, will incur higher-than-expected credit losses. Notes that, with the exception of Ghana, all major operating countries reported lower operating results in 2020 than in 2019.
Looking ahead, Chief Executive Dirk Brower says: "While the general expectation is that the situation will improve over time, we nevertheless, consider it appropriate to substantially increase the provision for expected credit losses from USD10.6 million last June to USD24.4 million now.
"We expect that the operating situation in many countries will remain challenging in 2021. Nevertheless, a substantial improvement of the operating environment with less disruption caused by COVID-19 should lead to better operational and financial performance during the course of 2021, albeit still below levels of past performance in prior years."
Current stock price: 180.00 pence
Year-to-date change: down 23%
By Ife Taiwo; [email protected]
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