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23 Feb, 2021 08:42 23 Feb, 2021 08:42

Non-Standard Finance begins work on 'substantial capital raise'

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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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Pilling and Co Stockbrokers Ltd. is not responsible for the content or accuracy of third party news articles and we may not share the views of the author or publisher.

We provide third party news for your convenience and information only and make no representation or endorsement whatsoever and hereby exclude all liability for any loss or damage that may be incurred by you as a result of your access or use. Please note that third party content may be subject to terms and conditions imposed by the third party owner of that content.