Amigo Holdings (LON: AMGO) released its annual figures at 6:29 p.m. Tuesday night. It’s no big surprise that Amigo, which offers short-term, surety loans to people with poor credit, was unwilling to release the numbers or its lingering financial problems.
The accounts were due to be released by September 2, failing which he would have breached the covenants of his 7.625% guaranteed loan notes. He was required to publish the accounts within 120 days of the end of the year, and they were published shortly after the results were announced.
In the year to March 2021, revenue fell from £ 294.2million to £ 170.8million, while the loss fell from £ 37.9million to £ 283, £ 6million. The impairment charge was £ 60.7 million and 11.8% of the gross loan portfolio was more than two months past the due date. The Covid-19 has made the problem worse.
Complaints cost £ 318.8million in the year and the provision for complaints nearly tripled to £ 344.6million. This assumes that known and expected complaints are resolved in their entirety.
Borrowing increased from £ 460.6million to £ 296.5million, with the net loan portfolio increasing from £ 643.1million to £ 340.9million. There is cash in the bank of £ 177.9million, plus restricted cash of £ 6.3million. The net liability amounts to £ 121.4m.
A plan of arrangement was agreed to with more than 95% of creditors who voted, but it was rejected by the High Court in May. An agreement could reduce exits.
The management is trying to come up with a new scheme of arrangement, which is an alternative to the insolvency of the company. No program and the company may not be able to continue operating, especially since there is uncertainty about the ability of lenders to repay the money at the end of the leave.
The FCA is still investigating the business and that means the business cannot be relaunched.
The share price was 8.38 pence when the market closed on Tuesday – nearly two hours before the announcement. This values the company at £ 39.8million.
The value of the business depends on the FCA’s investigation and any plan of arrangement that may be agreed upon by the High Court.