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Finablr’s Travelex takes £25mln quarterly hit from ransomware attack, coronavirus

The bureau de change suffered a ransomware attack early this year, while coronavirus looms over full-year performance

Finablr PLC - Finablr PLC’s Travelex takes £25mln quarterly hit from ransomware attack, coronavirus

Finablr PLC's (LON:FIN) quarterly like-for-like earnings for its unit Travelex are going to be hit by £25mln following a cyberattack and coronavirus disruption.

In January, the bureau de change was attacked by hackers, who swiped customers data and then demanded US$6mln as a ransom.

READ: Finablr founder pledges half the company as collateral

The company had to shut down all customer-facing systems, which have now been restored.

Finablr, which initially claimed there was going to be “no material impact” from the attack, said it expects to offset a “material proportion” of the £25mln hit through its insurance policy.

It is not clear yet when the compensation will be recovered.

In relation to the coronavirus outbreak, the FTSE 250-listed firm said it is too early to understand the full-year impact, bearing in mind China and other Asian countries account for 10% of Travelex revenues.

Finablr's founder B. R. Shetty has recently come under fire for financial dealings at his companies.

In January, Shetty and his son, executive director Binay Shetty, pledged over half of Finablr as collateral for a loan, with the share price halving since.

Things have been even worse at NMC Health PLC (LON:NMC), a hospital operator Shetty started in 1975, which is now under investigation by the UK's Financial Conduct Authority over “potential discrepancies” in bank statements.

The FTSE 100 stock has also been suspended from the London Stock Exchange.

Shares in Finablr dipped 1% to 60.35p on Monday morning.

Quick facts: Finablr PLC

Price: 11.025 GBX

LSE:FIN
Market: LSE
Market Cap: £77.18 m
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