Amigo Holdings announces interim results for the six months ended 30 September 2019

Amigo Holdings PLC, (Amigo), the leading provider of guarantor loans in the UK, announces results for the six-month period ended 30 September 2019.

Financial Highlights

  • Net loan book of £730.7m, an 8.8% increase (H1 FY19: £671.7m) underpinned by strong customer growth of 17.9%
  • Growth in revenue to £145.4m, an increase of 11.8% (H1 FY19: £130.1m)
  • Cost of funds improved to 4.3% (H1 FY19: 5.2%) following increased securitisation and open market repurchases of senior secured notes
  • Impairment:revenue ratio within guidance at 31.1% (H1 FY19: 23.3%)
  • Cost:income ratio increased to 28.0% due to accelerated investment and a provision for complaints (H1 FY19: 17.9%). Excluding the provision for complaints, operating cost:income ratio of 20.8% was within guidance (H1 FY19: 17.8%)
  • Reported profit after tax for the period of £37.0m, a decrease of 1.9%
  • Adjusted profit after tax £35.8m (H1 FY19: £47.2m)
  • Proposed interim dividend of 3.1p
  • Full year guidance for key operating metrics remains unchanged

Operational highlights

  • Strengthened credit policy resulted in lower relending
  • Focus on new customers led to high levels of customer growth
  • Received FCA feedback on Guarantor Lending
  • Action plans initiated to address capacity constraints in Collections
  • Outsource partnership extended to support Collections activity
  • Strong growth in Irish business with net loan book of €4.8m

Commenting on the half year results, Hamish Paton, CEO of Amigo, said: “The first half of the financial year has demonstrated continued demand for our guarantor loan product with solid growth in customer numbers. We are making encouraging progress as we roll out the operational and strategic initiatives outlined in August. While it will take some time to see the full benefits, we are pleased with the positive start we have made.

“Amigo holds a leading position in the guarantor loans market and our product makes a real difference to the lives of our borrowers, many of whom cannot access credit from mainstream providers. We are determined to use that position to be a role model in a growing sector, working alongside our regulators, to be at the forefront of best practice and achieve the best outcome for our customers.”