Credit, Collections & Insolvency News
Guarantor loan specialist Amigo Holdings has announced its interim results for the nine months ended 31st December 2019.
The company has withdrawn its guidance for the full year after revealing a sharp drop in pre-tax profits, from £79 million to £53.5 million. Revenue grew 8.5% to £218 million, whilst the net loan book rose 3.8% year on year to £722.3 million, though the firm’s impairment charges as a percentage of revenue was 31.5%, up from 24.2% the year prior.
Commenting on the results, Nayan Kisnadwala, CFO of Amigo, said “Amigo has continued to attract new customers in the period as we provide a, much-needed, mid-cost guarantor loan product. The Strategic Review has led to a change in our risk appetite on new lending, which we are currently trialling, as we steer Amigo towards sustainable, long term growth. While these lending adjustments will result in lower volumes, we expect that they will have a positive impact on impairment levels, yield per account and future complaints costs.”
“We have taken a deliberately prudent approach to complaints; with increased resource and an upskilled complaints team. We are committed to delivering fair outcomes to our customers.”
“Amigo remains in an Offer Period, under the Takeover Code, with our Strategic Review and Formal Sale Process ongoing. We will provide a further update to the market when we are able to do so.”
