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Results and cash balance were much better than I was expecting, 2021 is going to be a good year for Amigo.
Quote:- I m merely taking GJs words that relending will start in Q1 above your expert view Hunni thats all. And yes, will still be in this stock in 12 months so welcome to chat anytime.
Franky everyone gets it right every once in a while. However I hope I'm wrong and I'll happily take 01 Jan for relending to start or 31 March. Either way there is enough in the tank for the latter date. I'm as impatient as any & loan book is shrinking fast that is for sure. Hence the payment holidays are a good idea to keep the breaks on, staff need to have stuff to do when they come back from furlough. Plus when new business starts revenue comes in again pretty quickly. Note they say there will be less traffic, this business can afford to run lean for a while. I would like to see it do things correctly and then tap into the unlimited client potential and become the lender of choice again for the HUGE client pool that will be out there.
I’m waiting myself. I expected better news and honestly thought the complaints would have levelled off but obviously not.
No not in yet...
Still watching and waiting see how today plays out
Mark did you dip back in on the dip or holding your powder dry based on the RNS?
Franky Hunni good points - I’ve seen nothing this morning to diminish my LTH, but I’m not selling the crockery to plough in more
I m merely taking GJs words that relending will start in Q1 above your expert view Hunni thats all. And yes, will still be in this stock in 12 months so welcome to chat anytime.
You've been here a while Franky eh? Lending was coming before the end of the year but that is not happening. I don't see this as the company's fault, I think they are being prudent. However if you want Q1 lending need to get on the horn to BoJo and make sure there are no more lockdowns.
Hunniford- GJ stated Q1 for relending
Collections remain robust at 83% of pre-Covid-19 expectations for the period to 30 September 2020. This includes the early settlement of some customer loans. Amigo has adequate liquidity to continue to fund operations and support its customers, with £134.2m cash held as at 30 September 2020. Post period end, cash rose to c.£160m as at 25 November 2020 due to receipt of a £27.2m tax refund. Could we be buying NSF ?
I said this earlier in the week. I think lending won't commence until at least Q2, particularly if the govt are extending furlough until then. From a risk perspective it doesn't make much sense re-commencing lending. Since ultimately the end of furlough runs the risk of a knee jerk reaction of higher unemployment. Since it is a guarantor loan business I also suspect there would be less appetite from guarantors to throw their name in the hat at the moment, if you really needed money you would just get your guarantor to get a loan at a lower rate. The exercise of rebuilding your credit scoring can wait until the economy is healthier.
Hey Mark I think this comment is very valid and ultimately honest -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.”
If our idiotic govt decide to lockdown the country on and off for another 12 months then of course this is a major concern. But this won't be just attributable to Amigo it will literally wipe out over 50% of the FTSE. People do need to wake the F' up and really start pressing the Govt on this BS. COVID stats show that if you are under 60 and have no real health issues you have more chance of getting runover or having an accident at work.
I like this part:
"As the former majority shareholder has now sold its holding in its entirety and no other shareholder has developed a stake that gives it significant influence, this is no longer considered a material risk."
I expected the numbers to be worse but when the new team still put comments like this in ....
“ · The Board considers that it has adequate liquidity to continue to fund operations and support its customers. 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.”
You have to wonder !!!!
Financial note 1.1 is the key for me - says they have agreement in principle, but due to it not being agreed it has to be noted as a going concern:
a £250m securitisation facility (reduced from £300m on 17 August 2020) which expires in June 2022, after which the drawn balance will amortise in line with the repayment of the underlying securitised agreements. On 17 August 2020, Amigo announced it had agreed with its lenders a further extension of the waiver period end date from 24 July 2020 to 18 December 2020 to permit time for both parties the opportunity to fully understand and assess the impact of Covid-19 on the business, whilst maintaining the facility. The terms of the waiver period amendment remove the obligation of the lender to make any further advances to the Amigo Group, provide Amigo with a waiver from an early amortisation event should an asset performance trigger threshold be breached during the period and requires that all collections of securitised assets are used to repay any outstanding note balance. Any agreements with upheld complaints are repurchased from the facility for cash of equivalent value. The terms of the amendment also require that the facility must be restructured by 18 December 2020 to the satisfaction of the lender or the facility will be placed into early amortisation, after which, the performance covenants no longer apply.
Himace yes saw that..
Amigo sp today will up on the good weeks ahead,
imo
gl
Well done not too bad and very excited weeks ahead
H1 2021?
I can live with that. A lot of painful headline viewing but this comes as no surprise in current climate. Real honesty in the difficulties and GJ is not shirking his responsibilities! Cash balance of £160M is solid with that tax rebate and hopefully these god awful CMCs being dealt with by the FCA which are a disgusting bunch of crooks quite frankly.
Onwards and upwards now - bad news out the way and a superb new board to take tis back to its former glories in time. Happy to hold and will add on any major weakness in SP. atb
Anyone else notice H21?
Not great, not awful, much what I expected. Good news about the finance facility, cash balance still looks strong, complaints provision the same, no news on a date for lending restart or end of the FCA Vreq. Mixed bag.. I think we'll see a slight but not massive drop before the webinar and end the day green.
Not great, not awful, much what I expected. Good news about the finance facility, cash balance still looks strong, complaints provision the same, no news on a date for lending restart or end of the FCA Vreq. Mixed bag.. I think we'll see a slight but not massive drop before the webinar and end the day green.
Totally agree, not all doom & gloom at first glance
Better RNS than I was expecting TBH.