|Delayed - 12/04 11:35:22 am|
International Personal Finance : Doorstep lender International Personal Finance flags going concern risk
|09/08/2020 | 02:48am|
Doorstep lender International Personal Finance said on Tuesday there is a "material uncertainty" around its ability to continue as a going concern after posting a loss and given the upcoming maturity of a eurobond.
The UK-listed firm, which operates primarily in Central and Eastern Europe and Mexico, posted a pretax loss of 53.3 million pounds ($70.05 million) in the first half of 2020 after COVID-19 hampered its ability to collect loan repayments and forced it to significantly tighten its lending criteria.
The company said its collections have now improved and it is implementing a strategy to rebuild its business.
However, it has near-term funding issues with a 397 million euro (356.78 million pounds) eurobond due to mature in April 2021 and a need to renegotiate the terms of some of its loans.
"The need to refinance the 2021 Eurobond and obtain covenant amendments create a material uncertainty surrounding going concern," the company said.
It added that the board is confident the company will be able to refinance the bond, and that they have a reasonable expectation the group will be able to continue trading for the foreseeable future.
(Reporting by Rachel Armstrong; editing by Pamela Barbaglia)