2nd Mar 2020 09:46
(Alliance News) - Finablr PLC warned on Monday that a malware attack, plus coronavirus, will knock earnings by approximately GBP25 million.
Finablr's foreign currency business Travelex was attacked with a software virus 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.
These systems are now fully online again, Finablr said Monday, and the firm said the decision to take them offline immediately prevented further harm.
However, Abu Dhabi-headquartered Finablr has now warned the coronavirus, which has spread across the globe after appearing in China, is an "incremental negative" for Travelex, given the business has a large exposure to airports and travel.
Finablr also said coronavirus could impact some of its other businesses, with updates on these to come when appropriate.
"As a result of the above factors, based on current information, Travelex estimates there will be a reduction of underlying earnings before interest, tax, depreciation, and amortisation in first-quarter 2020 compared to the equivalent period of 2019 of approximately GBP25 million on a like-for-like basis, mostly attributable to the malware," said Finablr.
"Travelex has a cyber-insurance policy in place which we currently expect to offset a material proportion of this Ebitda reduction in addition to covering the direct costs of recovery. However, the timing of Ebitda recognition and receipt of the insurance recovery is yet to be determined," the company added.
Results for 2020 should include the benefit of this insurance. It does not expect second or third-quarter results to suffer any material impact from the software attack.
Due to the cyber attack, Finablr will not be able to release financial results for 2019 until mid-April.
Shares were 0.7% higher on Monday morning in London at 61.50 pence each. But they have more than halved in value since the end of 2019.
By George Collard; [email protected]
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