15th Nov 2019 10:17
(Alliance News) - Lender Non-Standard Finance PLC shares fell sharply on Friday, after it issued a 2019 profit warning and announced the departure of its finance chief.
Shares in Non-Standard were 18% lower at 26.90 pence each in London on Friday morning.
Trading in the quarter ended September 30 was weaker than anticipated, with lower volumes in guarantor loans. Trading in branch-based lending and its home credit unit were in line with expectations.
Full-year normalised operating profit is expected to be lower than first anticipated, but still above the GBP35.9 million reported in 2018.
The company did not change its dividend policy however, and continues eyeing a full-year payout of roughly 50% if normalised earnings before exceptional items. Non-Standard expects to pay an annual dividend of 3.0 pence per share in 2019, up 15% year-on-year from 2.6p.
Non-Standard added that it is in talks to enter a "lower cost debt facility". The financing will be used to fund the "next stage" of the company's development.
The company explained: "The process is well-advanced and the company hopes to make a further announcement in this respect before the end of the year."
Finance Chief Nick Teunon will step down from March 2020 and will be replaced by Jono Gillespie, his deputy.
Prior to joining Non-Standard, Gillespie was held a number of senior roles at lender Provident Financial PLC.
By Eric Cunha; [email protected]
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