Note on Company Liquidation
In May 2020 the board of Urban Exposure PLC decided to pursue a strategy whereby the Company would no longer write new business and would undertake an orderly wind down of its loan book to maximise returns to shareholders. This decision was subsequently reaffirmed in June 2020.
Despite significant market headwinds and three national lockdowns, management has successfully reduced the Company’s managed loan commitments (including capital managed for partner investors) from approximately £1 billion down to the smallest exposure on the loan book, and a corresponding reduction in the number of loans managed from 21 loans to 1 loan remaining. This has enabled distributions to shareholders of over £111 million since June 2020 (of a total forecast return of approximately £117m) and a forecast range for total shareholder returns of 72p to 73p, against a share price of 48p on 18 June 2020, the day the run-off was announced. This corresponds to a run-off IRR of approximately 72% and money multiple of approximately 1.54x.
On 22 June 2021 Geoff Rowley and David Shambrook of FRP Advisory Trading Limited were appointed as liquidators to affect the voluntary winding-up of Urban Exposure PLC. On 23 June 2021 the admission of Urban Exposure PLC’s ordinary shares to trading on AIM was cancelled. On 13 May 2022 the remaining group companies were placed into Members Voluntary Liquidation with Geoff Rowley and David Shambrook of FRP Advisory Trading Limited being appointed. The liquidators are now in control of the Group, with all remaining staff having departed.
The Group has only one loan remaining which requires additional time to work out. The Group has retained a suitable cash balance in order to ensure orderly repayment of this loan and members of the management team will provide ongoing support to FRP in respect of this loan. Given this situation the Company is set to make the next distribution to shareholders of £4.0m (5.5p) within the coming weeks. This distribution amount takes into account the Company’s current cash reserves, future expenses and an appropriate cash buffer. The current expected range of total shareholder returns is now 72 to 73 on a pence per share basis.
Sam Dobbyn, Director
FRP Advisory Trading Limited
Geoff Rowley, Joint Liquidator
Please contact Emma Mealiff
+44 (0) 20 3005 4000