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Highlights
- Wind-down progress: Amigo continues to operate the orderly wind-down of its legacy lending business, with no return to shareholders expected.
- Claims and redress: £85.1 million refunded and £72.9 million in cash redress paid to Scheme claimants.
- Future outlook: Amigo explores a reverse takeover; liquidation is a potential outcome if no viable solution is found.
Amigo Holdings PLC (LSE:AMGO), the UK-based provider of mid-cost credit now in run-off, reported its financial results for the six months ended 30 September 2024, continuing the orderly wind-down of its legacy lending operations under the Fallback Scheme.
Wind-Down and Operational Changes
Amigo has made significant progress in winding down its operations:
- Office Closure: In July 2024, Amigo downsized its office space, moving to a smaller location due to reduced operational needs.
- Claims Processing: The company has processed 99.98% of claims under the Scheme, with £85.1 million in refunds and £72.9 million in redress paid to claimants. While most claims have been resolved, some creditors have yet to provide payment details and are encouraged to do so to avoid losing their redress.
- Portfolio Sales: Amigo completed the sale of legacy loan portfolios after conducting a competitive sales process.
Corporate Strategy and Future Plans
Amigo remains open to exploring proposals for a reverse takeover and continues to search for opportunities to secure a future for the company. However, if no viable solution is identified soon, Amigo plans to hold a General Meeting to seek approval for a delisting from the London Stock Exchange and enter voluntary liquidation. If this occurs, shareholders will not receive any value from the liquidation.
Financial Performance
- Provision for Claims: The provision for claims decreased by 80% to £40.8 million, compared to £208.0 million in H1 FY2024, driven by payments made and related expenses.
- Impairment: A credit of £2.0 million was recognized, reflecting proceeds from the sale of loans and previously written-off debt.
- Cash Reserves: Unrestricted cash reserves dropped to £22.5 million from £121.6 million in the prior year, reflecting redress payments and operational expenses.
- Net Assets: As of 31 March 2024, consolidated net assets were reduced to nil, reflecting that proceeds from the wind-down process are for the benefit of Scheme creditors. Following a capital raise earlier this year, the remaining net assets of £0.1 million are allocated to support Amigo’s search for a reverse takeover or its entry into liquidation.
- Losses: The Group reported a pre-tax loss of £0.1 million for the first half of FY2025, a marked improvement from the £6.7 million loss in the same period last year, with the reduction reflecting the winding down of the legacy business and the associated costs now provisioned.
