London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
No re-lending timeline as they want the FCA decision first. I wouldn't say they skirted round it but they're trying to focus solely on getting the SOA approved first. Clearly they know exactly what products they'll be offering and it sounded like they were ready to go with them. I am guessing they didn't want to make it sound like they were going after new business at the expense of looking after the old clients. i.e. we will right our wrongs before we look to make money again. I think it is a good message to the FCA. If the FCA decision comes soon, the SOA is agreed at the end of March, I am not sure I am seeing a reason why the couldn't resume in April. So, not too long now.
I missed the call completely,
Did they indicate anything specific about relending?
A road map to it or anything? Or did they just skirt around it?
Thanks for that ISA investor. I couldn’t get it on the call as at the day job so been nipping in and reading your comments
You're most welcome PHILBORO - missed a few bits due to work, particularly annoying when they were discussing the "why £85M" but I think this was less about the numbers and dates and more for us to hear their change in confidence levels with the decisions not too far off. For those who didn't listen; there was real, genuine confidence there. They were balanced and not ****y about it at all. You can just tell when someone is simply confident and holding back a little. there is more they want to say but they want to get past the SOA/FCA first. I think some news will drop very quickly after that. The voting population to get SOA over the line looks to be in their favour and it sounds like the FCA gets more on board by the day. Suspect JPM and Bybrook have looked at what Amigo 2.0 will be offering and like it a lot. It's not about where we are today, it's what they'll announce in April.
Appreciate all the updates folks.
I thought they did an excellent job, frankly. Price hasn't dropped significantly and a few will have pulled the money across the call, just in case. Think this will be received very positively by the market. Without being over the top, they really seem confident in the outcome of the SOA, FCA decision and the chances of 2.0 to capture a whole new customer base.
Thanks ISA-Investor, great updates with fantastic news, only one way this is heading now, could be the..."one" that we all look for with multi bag prospects
Agree entirely on the confidence and balance within this statement (listening to calls/people beating a path to the door). A very compelling presentation. Well done Amigo
A completerly different company to the uncertain, hesistant, nervous voices of September. I am sticking with this one, no top slicing this time, he is a man with a plan and appears to know how to deal with the business, FCA, courts, II's and dare I say it even PI's!
Stopped lending in March 2020, due to COVID, effectively.
Between March - November 2020 "did a few loans" to key workers.
Lending was simply a distraction from focussing on the SOA, so took the decision to stop lending at that time.
Call ended now. All pretty balanced by they sound very, very positive about 2.0
Totally agree
Everyone knows the outcome, the big boys certainly do and they are prepared to wait and sit it out.. could be one of the best recovery stocks in 2021/22 this could
Neil from Blue Bay again: "what degree of confidence do you have... in Amigo 2.0 not hitting similar problems"?
Graham - 100% certain there was never anything Amigo did systemically wrong, previously. He listened to a lot of complaints calls before becoming CEO and was satisfied there was no systemic issue. However, he understands a lot of small errors were made and they have used skilled people (assume ex-FCA) to write the new guidelines for when they return to lending, which will mean they won't make the same mistakes again. they will be lending on a very different basis "it will blow the market away" (again). When you do the right thing for customers, "people will beat a path to the door". Sounds VERY confident about the prospects of Amigo 2.0.
Sounds like 1M (300k current + 700k past + ombudsmen, etc) people get to vote on the scheme, with the money distributed amongst all of those with a valid claim. I guess the vast majority of those 1M+ people are actually happy with Amigo and quite fancy a little bit of money. I think we all know that. As do Amigo, Bybrook, JPM, the FCA, etc.
Question (Blu Bay Asset Management):
"you're very confident about getting the FCA on board to agree the SOA... Can you tell us what has been addressed since the end of January and what remains to be addressed?"
- FCA very focussed on delivering the right outcomes. AMGO believe scheme provides the best outcomes. FCA has to perform the due diligence to work that out for themselves. Every week that passes, things have been moving forward. Plenty of time to help the regulator understand the merits of the scheme. "it will produce the right outcome for the borrowers".
Mike - the intent is that there will be a report issued to the FCA prior to the court date, which will focus on the scheme methodology, which will serve as prime input into the decision.
Gary - More confident today that the scheme will get over the line than he was in January. They have been living and breathing it and know they are proposing the right thing and others just need time to understand it. As time passes, more and more people understand it (the suggestion being they agree with it).
Blow the market away....watch this space
Question (1st, Ben) on whether there is any update from the FCA:
Enforcement investigation from the FCA - in process, conversations being had, no real update to provide at this time.
When up and running (lending): Amigo 2.0 will re-enter with a new proposition on a limited basis and build up slowly.
Agreed with regulator that both with continue diverting all resources into getting the SOA agreed in the meantime.
They are CONFIDENT that they will get the SOA over the line and will work with FCA to ensure new products are ok.
They want to offer something that will blow the market away - "Watch this space" (Graham, enthusiastic).
Current cash position of over £165M despite redress paid and debt reduction.
Financial Inclusion vitally important post COVID-19.
Amigo 2.0 to meet this need and position the business for the long term.
Insolvency just mentioned but downplayed much more now and it was almost in passing/throwaway. Think we're looking at a much, much better chance of survival now, irrespective. Lending still expected to commence in 2021 and they're looking at long term stability in the future. In all - very positive but nicely balanced.
Yep that will do it
Return to lending: Amigo 2.0 product strategy will focus on customer needs and outcomes. The global pandemic has shown that the customer can't predict when they can't make ends meet. So it does sound like they'll be focussing on supporting customers during/for COVID recovery. The market is enormous is they can provide credit to those people. Huge harm being caused by people being unable to access credit. With the Woolard report, the FCA can't deny that. Amigo 2.0 will find the right solution for each customer, potentially offering them lower APRs than they might be able to get elsewhere. Lot's of numbers about the size of the market, which is huge, but CANNOT tell us when they will restart lending as this hinges on the FCA review.
"Recognise the need for certainty to treat all current and previous borrows fairly" (700k previous, 300k current). They will enable all customers back to 2005 to claim under the scheme. It sounds to me like they're going to get the SOA over the 75% threshold by using old customer votes to get it across the line, by offering those who would probably have had nothing, something. This is very good news in terms getting the SOA done, in my view.
Net debt has reduced significantly - March '20 £401M to Dec '20 £182M by the looks of things. £287.1million reductions, if I am reading/hearing things right, YOY. Cash position looks strong. Another indicator as to why IIs may be coming in now.
Just had to drop off myself for a work call but back on now.
We all know that this share is risky and also has the potential to reach 100. But you are missing the point that large ii's are buying into this. Sell your shares to them now and then come in 6 months time and see.
Sounds like they are going to announce a return to lending later on the call. I think they have been going 'above and beyond', helping those with outstanding loans, during COVID. I think the FCA will look on this favourably.