Travelex owner’s shares fall 65% due to coronavirus impact
Shares in the embattled owner of Travelex have crashed by 65% after the firm said the coronavirus outbreak was affecting its ability to access enough cash to keep the foreign currency business running smoothly.
Finablr said travel restrictions designed to limit the spread of Covid-19 had weakened demand for its services and disrupted the transport of cash.
The firm also had its credit rating downgraded for its Travelex bonds this year and was experiencing a cash squeeze across the business.
“Finablr is taking urgent steps to assess accurately its current liquidity and cashflow position, which has been adversely impacted by a number of factors,” it said.
“These factors place significant constraints on the company’s access to the daily liquidity the company needs to manage its business effectively and its ability to negotiate longer-term financing.”
The company also raised concerns about the impact an accounting scandal at the troubled hospitals firm NMC Health was having on its reputation.
The two businesses have several shareholders in common, but Finablr said it had not discovered any undisclosed transactions or financing deals. However, it said it would launch an independent investigation into its financial position. The news caused its shares to plummet 65% to 8p by 12pm on Thursday.
The troubles come after Finablr was attacked by ransomware hackers in January. The breach disrupted online travel money services for clients including Royal Bank of Scotland, Barclays, Tesco Bank and Asda.
Finablr said: “The board is focused on providing transparency to the market on its financial position as soon as possible.
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