Amigo Holdings PLC – First Quarter Financial Results for the year ended 31 March 2021

Amigo Holdings PLC, (Amigo), the leading provider of guarantor loans in the UK, announces results for the three month period ended 30 June 2020.


  • Covid-19 related payment holidays granted to approximately 47,000 customers
  • Revenue reduction of 31.7% to £48.8m (Q1 FY 2020: £71.5m) primarily due to the impact of Covid-19-related payment holidays and the temporary pause in all new lending except to key workers
  • Net loan book reduction of 24.1% to £553.1m (Q1 FY 2020: £728.4m)
  • Impairment:revenue ratio at 37.9% (Q1 FY 2020: 30.5%), driven by the downward revision of economic assumptions and the impact of Covid-19 related payment holidays
  • Operating cost:income ratio excluding complaints of 23.0% (Q1 FY 2020: 20.6%); including complaints the ratio was 36.9% (Q1 FY 2020: 23.4%)
  • Complaints provision broadly unchanged at £116.4m (Q1 FY 2020: £1.8m); incremental cost of £6.8m
  • Reported statutory profit after tax for the period of £3.0m (Q1 FY 2020: £18.1m)
  • Net borrowings/adjusted tangible equity: 1.8x (Q1 FY 2020: 1.8x)
  • £145.2m of cash and cash equivalents as at 30 June 2020 (Q1 FY 2020: £27.5m); unrestricted cash balance at a similar level as at 31 July 2020, of over £145m after the half year payment of interest on Amigo’s senior secured notes
  • Voluntary agreement (VReq) reached with FCA to resolve complaints backlog by 30 October 2020 and on track to meet this deadline. FCA investigation into Amigo’s creditworthiness assessments initiated
  • Post period

Commenting on the Q1 results, Nayan V.Kisnadwala, CFO of Amigo, said: “The whole team at Amigo is focused on addressing our legacy issues and building a sustainable business for the long term. Operationally we have turned a corner in our handling of complaints. We are on track to meet the agreement reached with the FCA to resolve our complaints backlog and continue to work with the FCA on its ongoing investigation. We have adequate liquidity and funding to support our ongoing business activity.

“We are updating our lending processes and policies to enable Amigo to restart lending in a prudent manner by the end of 2020.”