Friday, November 22, 2024, marks a pivotal moment for Amigo Holdings PLC ("Amigo" or the "Company"), as it nears the completion of its operational wind-down. The former UK provider of mid-cost credit, which is now in run-off, has announced its interim financial results for the six months ending September 30, 2024. Kerry Penfold, CEO/CFO of Amigo, expressed pride in the resilience of the staff and their dedication to supporting customers throughout this challenging process. The company is also actively searching for a reverse takeover partner following an equity raise and the appointment of Jim McColl to the Board.
Amigo has made significant progress in its wind-down process, including the closure of its main office in July 2024 due to reduced space needs and the successful completion of legacy loan book portfolio sales. Amigo's Board has been aided by Jim McColl since his appointment on September 1, 2024, as they continue to explore potential opportunities for a reverse takeover.
The company's financial headlines reveal a decrease in the provision for claims by 80% to £40.8 million, down from £208.0 million in the first half of FY2024, primarily due to the payment of claims and expenses associated with the Scheme. Additionally, Amigo reported a pre-tax loss of £0.1 million, an improvement compared to the loss of £6.7 million in the same period last year.
Amigo's cash reserves have diminished following refunds to customers under the Scheme, payment of operational costs, and continued transfers of surplus cash to the Scheme. At the end of September 2024, the Group held unrestricted cash of £22.5 million, a significant decrease from £121.6 million in September 2023. The company's net assets were reduced to nil at the year-end (March 31, 2024), indicating that all proceeds from the wind-down of the legacy business are pledged to Scheme creditors.
Looking ahead, if no viable reverse takeover solution is found before the company runs out of funds, Amigo will propose to delist from the London Stock Exchange (LON:LSEG) and enter voluntary liquidation, leaving shareholders with no return.
For further information, interested parties can contact Nick Beal, Chief Restructuring Officer at Amigo, or Lansons - Team Farner PR at amigoloans@lansons.com. Additionally, Beaumont Cornish can be reached at 0207 628 3396 for sponsorship-related inquiries.
Amigo's shares are listed on the Official List of the London Stock Exchange, and the company's subsidiary, Amigo Loans Ltd, has ceased offering new loans as of March 23, 2023, and is in the process of running off its back book of loans with all net proceeds due to creditors under a Court-approved Scheme of Arrangement.
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