By Michele Maatouk
Date: Thursday 26 Nov 2020
LONDON (ShareCast) - (Sharecast News) - Amigo Holdings said on Thursday that it swung to a pre-tax loss in the first half as revenues slid and the subprime lender expressed doubt about its ability to continue as a going concern.
In the six months to the end of September, the company swung to a pre-tax loss of £62.6m from a profit of £42.3m in the same period a year ago. Revenue fell 36.5% to £92.3m as customer numbers dropped 21% to 176,000.
The revenue decline was attributed to the fact that Amigo paused all new lending in March after the coronavirus outbreak, except to key workers. It also took a hit from Covid-related payment holidays, which were granted to around 56,000 customers as at 30 September. As at end of October, this was 57,000, with 22,000 plans still active.
Amigo's net loan book declined by 33.6% in the half to £485.2m.
Earlier this month, Amigo said it had had to increase its provision for customer complaints over mis-selling and that it wouldn't resume lending until 2021.
This came after the Financial Conduct Authority found that it had failed to properly evaluate whether customers were able to afford their loans and subsequently banned Amigo from paying dividends to directors and ordered it to deal with all compensation claims by the end of October.
"The board considers that it has adequate liquidity to continue to fund operations and support its customers," the company said on Thursday. "There is, however, a material uncertainty surrounding going concern due to the potential economic impact of Covid-19, uncertainty over future complaint volumes and the possible outcome of the ongoing FCA investigation."
At 0835 GMT, the shares were down 4.9% at 8.73p.
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Currency | UK Pounds |
Share Price | 0.25p |
Change Today | 0.075p |
% Change | 42.86 % |
52 Week High | 0.95 |
52 Week Low | 0.12 |
Volume | 72,617,855 |
Shares Issued | 475.33m |
Market Cap | £1.19m |
RiskGrade | 543 |
Value |
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Price Trend |
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Income |
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Growth |
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Latest | Previous | |
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Interim | Final | |
Ex-Div | 09-Jan-20 | 18-Jul-19 |
Paid | 29-Jan-20 | 31-Jul-19 |
Amount | 3.10p | 7.45p |
Time | Volume / Share Price |
14:50 | 40,000 @ 0.34p |
14:47 | 100,000 @ 0.33p |
14:42 | 345,426 @ 0.30p |
14:38 | 2,000,000 @ 0.32p |
14:17 | 100,000 @ 0.32p |
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