Subprime lender Amigo Holdings PLC (LON:AMGO) declared its first interim dividend after first-half profit jumped 40% as an increase in customer numbers led to higher revenues.
The company, which floated on the London Stock Exchange in June and was included in the FTSE 250 in September, said adjusted profit before tax increased to £47.2mln in the six months to September 30 from £33.8mln a year ago on revenue of £130.1mln, up 40% on last year’s £92.6mln.
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The net loan book increased 24% to £671.7mln from £541.6mln the previous year as customers numbers grew to 207 from 155.
Amigo issues loans typically guaranteed by a borrower’s family or friends. Since guarantor loans carry higher risks, the company took an impairment charge as a percentage of revenue of 23%.
“There are millions of people across the UK who find themselves turned away by their high street banks and unable to access the financing they need for important life costs,” said chief executive Glen Crawford.
“Our continued success positions us well to deliver our goal of meeting the growing needs of these individuals, providing access to a flexible, mid-cost financing option - a simple guarantor loan product at an APR of 49.9%."
The group has completed an inaugural securitisation funding line of £150mln at an all-in rate about 500 basis points less than its bond funding.
The lender said the securitisation is a key part of its strategic initiative in diversifying its sources of funding, maintaining strong liquidity and lowering overall cost of capital.
Amigo declared its first interim dividend of 1.87p.
Shares fell 1.95 to 259p in morning trading.