July 30, 2020 / 9:48 PM / 13 days ago

Britain's Monzo flags going concern doubts due to COVID-19 impact

FILE PHOTO: A Monzo logo is seen in this illustration taken January 6, 2020. REUTERS/Dado Ruvic/Illustration/File Photo

(This July 30 story corrects paragraph 1 to reflect coronavirus crisis impact occurred after the full-year financial period)

(Reuters) - British digital bank Monzo on Thursday flagged significant doubt in its ability to continue as a going concern after posting a bigger full-year loss due to the impact of the COVID-19 pandemic.

The company’s loss widened to 113.8 million pounds from 47.2 million pounds a year earlier.

Monzo said in its annual report that its directors remain confident in the company’s ability to raise capital if needed.

As the impact of the coronavirus pandemic on its business began to bite, Monzo had to accept a 40% cut in its valuation in a June fundraising, with the 60 million pound raise valuing it at 1.25 billion pounds, down from 2 billion last year..

Reporting by Juby Babu in Bengaluru; Editing by Maju Samuel

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