logo-loader

Amigo Holdings shares dip 6% due to diminished loan book and customer base

Published: 11:17 29 Nov 2022 GMT

Amigo Holdings plc is a UK-based company in the guarantor loan space

Subprime lender Amigo Holdings PLC (LSE:AMGO) fell 6% on the London Stock Exchange after Tuesday’s first-half interim report disclosed a severely reduced loan book and customer base, on top of a 64% year-on-year decline in revenues.

Amigo entered into a scheme of arrangement in May following a large-scale customer compensation action into unfair lending practices.

The company returned to lending in October following approval from the Financial Conduct Authority, but has since struggled to revitalise its loan book.

Chief executive Danny Malone commented: "Under the terms of our scheme of arrangement, compensation payouts will begin next year to customers who are owed redress. 

“It has been a long process of renewal but I'm proud of the journey we have been on. We've built a better company with the right culture and strong underwriting standards. We're now well positioned to support people through this cost-of-living crisis with responsible lending." 

AMGO shares are 21% down year to date, with a market capitalisation of £22mln.

Chesnara reports strong 2023 results with improved cash generation and...

Chesnara PLC (LSE:CSN) chief executive Steve Murray discusses the company's full-year results for 2023 with Proactive's Stephen Gunnion, describing them as strong and particularly highlighting £53 million in commercial cash generation and a dividend coverage of around 150%. The company has...

50 minutes ago