Urban Exposure announces half year results

By Bridging Loan Directory 10th September 2019

Urban Exposure Plc (“the Company”) and its subsidiaries (together “the Group” or “Urban Exposure” or “we”), a specialist residential development financier and asset manager, today announces its interim results for the six months ended 30 June 2019 (“the Period”).

Business Highlights

£97.5m of new committed loans as at 9 September 2019 (£54.3m of new committed loans as at H1 2019) (H1 2018: £0.3m).
Continued focus on high loan credit quality with WA LTGDV of 66% (FY 2018: 67%).
Progressed loan pipeline of £1,013.1m of which £666.3m is in legal due diligence.
Current committed loan book has pre-sales, backed by buyer deposits, which reduces the WA LTGDV to an effective rate of 45%. Zero credit losses to date.
Several asset management strategies well advanced including c. £500m of funding in legal due diligence as at 9 September 2019.
The following performance measures as at H1 2019 were as follows:

New committed loans:

£54.3m (H1 2018: £0.3m, FY 2018: £524.5m)

Projected aggregate income (the Group share, on loan book over life of loans):

£1.0m (H1 2018: £0.0m, FY 2018: £26.9m)

Weighted Average LTGDV:

66% (H1 2018: n/a, FY 2018: 67%)

WA IRR (unlevered):

11% (H1 2018: n/a, FY 2018: 10%)

WA Money Multiple (annualised and unlevered):

1.14x (H1 2018: n/a, FY 2018: 1.15x)

Financial Highlights

The Group achieved a small profit before exceptional items for the Period and the total loss for the Period was £0.2m, including exceptional costs of £0.3m and share-based expenses of £0.1m:
- revenue of £5.3m
- operating costs of £(5.3)m, representing 0.82% of total loans and assets under management

Interim dividend of 1.67 pence per share approved payable to all shareholders on the Register of Members on 27 September 2019 will be paid on 18 October 2019.

Basic loss per share: (0.16)p

Basic profit per share adjusted for exceptional costs: 0.003p

Net tangible asset value¹: 135.2m

Net tangible asset value per share: 85p

Cash and cash equivalents per share: 29p

Loans receivable per share: 53p

[1] Calculated as Net Asset Value of £147.7m less Intangible Assets of £12.5m

Randeesh Sandhu, Chief Executive Officer, commented:

“In line with our strategy, we continue to focus on the ‘ramp up’ of our AUM and loan book and have invested significantly in our team to support this phase.

While current market sentiment remains subdued, the underlying demand for development finance has continued unabated and we have a strong progressed loan pipeline of over £1 billion. As the business enters into the traditionally busier second half of its calendar year, we therefore remain confident of meeting market expectations.”