LONDON (ShareCast) - (Sharecast News) - International Personal Finance warned there was "material uncertainty" over its ability to continue as a going concern on Tuesday, after the Covid-19 crisis saw it plunge into the red and left it at risk of breaching covenants.

The doorstep lender said losses in the six months to 30 June were £53.3m, compared to pre-tax profits of £56.1m a year previously. Customer numbers fell 17.3%, while declines in both issued credit and collections meant net revenues slumped 44.3% to £180m.

In addition, the firm - which operates predominately in Central and Eastern Europe and in Mexico - said that the impact of Covid-19 was likely to "temporarily affect" covenant tests and that it was now in discussion with its banks as a result.

It has also appointed debt advisors and was "actively preparing for the refinancing" of the Eurobond, which matures in April 2021.

"The need to refinance the 2021 Eurobond and obtain covenant amendments create a material uncertainty surrounding going concern," IPF conceded.

The Covid-19 pandemic and subsequent introduction of lockdown measures hampered IPF's ability to both lend and to collect existing debts.

Chief executive Gerard Ryan said: "Covid-19 has created an extremely challenging trading environment.

"Our near term objective is the refinancing of our 2021 Eurobond, supported by our robust balance sheet and the unique position we occupy in the underbanked and underserved consumer finance market."

As at 1115 BST, share in the London-listed firm were off 16% at 62.3p.

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