Non-Standard Finance begins work on 'substantial capital raise'
Subprime lender Non-Standard Finance said on Tuesday that it would have to raise new capital in order to avoid future covenant breaches and address uncertainties around its going concern status.
As a result, Non-Standard Finance has commenced work on "a substantial capital raise" with the support of Alchemy, its largest shareholder, with a view to completing this in the second quarter
Once completed, NSF said it will be in "a strong position" to take advantage of what it believes to be "an exceptional market opportunity" in the non-standard sector.
The London-listed group also said its net loan book at the end of 2020 was down 27% compared to 2019 but stated that branch-based lending and its home credit unit had both delivered "a solid trading performance" during the second half in what were "extremely challenging circumstances".
As of 0840 GMT, NSF shares had shot up 9.02% to 3.83p.
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