31st Dec 2019 08:13
(Alliance News) - Urban Exposure PLC said Tuesday it expects to report lower operating costs for 2019 than previously expected, as it continues to review several different proposals for the company's future.
The asset management services provider said the expectation for lower costs is due to reduced staff expenses, stemming from lower remuneration and the hiring of fewer people than previously budgeted. Urban Exposure said it expects to reduce its operating cost based to around GBP9.5 million in 2020, to support the company's profitability.
For the year, Urban Exposure has completed new committed lending of GBP498 million, totalling around GBP1 billion since the company's initial public offer in London in May 2018.
A further GBP268 million in loans are expected to close in the first quarter of 2020. These loans were set to close in the fourth quarter of 2019, but were delayed due to political and economic uncertainty.
Going to 2020, the company has an pipeline of loans that comes up to GBP686 million.
Back in mid-November, Urban Exposure received several new proposals for the restructuring of the company, on top of a proposal received earlier from 13% shareholder R20 Advisory Ltd.
Urban Exposure's board said then it was considering the additional proposals, without specifying what the new proposals were.
The original proposal by R20 was focused on restructuring the company's business into a publicly traded debt fund. R20 proposed a carve out of the management company from Urban Exposure, thereby saving annual costs estimated to be between GBP12 million and GBP13 million and the issue of a 30 pence a share dividend.
The stock was up 3.7% early Tuesday in London at 70.00 pence.
By Dayo Laniyan; [email protected]
Copyright 2019 Alliance News Limited. All Rights Reserved.
Related Shares:
UEX.L