Amigo Holdings PLC, a provider of mid-cost credit in the UK, has announced its interim financial results for the six months ended 30 September 2023. The company continues to operate the orderly wind down of operations as previously announced under the Fallback Scheme. This includes a reduction in staff through a planned redundancy program. The processing of claims under the Scheme is ongoing, with over 99% of claims determined and c. 60% of claimants informed of their outcome. The sale of the RewardRate portfolio has been agreed, subject to contract, and the sale of Amigo Loans' charge-off portfolio has started and is ongoing. The legacy Amigo live portfolio is expected to be sold in early 2024. Grant Thornton has been engaged as advisors to support with the dissolution of the Amigo Group of companies during 2024.
Danny Malone, the Chief Executive Officer, will step down on 31 December 2023 and will be succeeded by Kerry Penfold, who will manage the business through to handover to liquidators later in 2024. The financial headlines for the period include a net loan book reduction of 69.6% to £24.5m and a revenue reduction of 82.3% to £2.8m, primarily due to the ongoing run-off of the legacy loan book and minimal new lending during the period. The Scheme provision has increased by 8.7% to £208.0m, driven by an increase in the estimation of cash available to pay redress and compensatory interest due to claimants. The reported loss before tax for the period was £6.7m. Overall collections, including early repayments and recoveries from charged off accounts, have remained robust. The net assets have reduced by 84% to £5.8m, and the company had £121.6m of unrestricted cash and cash equivalents as of 30 September 2023.
Amigo will be hosting a Zoom meeting for investors today at 1.00pm (London time).