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Just to look who truthfactory follows on LSE boards is enough to make me laugh with his comments :)
Truthdfactory i dont know who you think you are going to fool with that bullchit! :D off you pop
Truthfactory - I don’t think you’ve owned or ran businesses at any real serious capacity. If you have, it makes your comment even more shocking.
The knowledge, data on customers, staff Amigo have, loanbook, brand and business connections are all highly desirable traits and not something that is just east to “Start over”. Amigo can attract talent like Gary, ex-FCA staff etc - there is value here, after SOA 2 is approved, SP will be on a bull run again.
fifth is missing, can't remember what it was.
five things :
a) debt - maturity profile and cost of it (interest) - it does include SOA+claim liabilities too, not just institutional
b) start of lending
c) positive equity
d) return of Vinson .. last post from him was precisely a month ago, June-25th..
(a) - I think business works on collections only to meet liabilities, it's rather winding down situation.
(b) - doesn't seem to happen in a near future,
(c) - quite sure equity is already negative (with unrealized provisions), PnL weighting heavy on it too (+costs of new SOA), net (impairments) interest on loan-book I think hardly compensates, and i don't think anyone willingly would fill this hole given quite bad track record on reputation, too risky to get another historic liability later on, easier to open new business.
(d) this guy's helped a lot here (me included) to get out of deep loss, I guess many would feel happier if leader with deep pockets and full transparency have returned (or new picked up the flag)
generally let's see what they have there (although situation has changed/worsened drastically since this upcoming report date anyways), operational and unusual costs (incl claim management), Loan Book maturity profile (and how far it has deflated already, me and senator have a bit different view on this), defaults/impairments and further provisions..
You gunna get in now NOFEAR we missed you :)
Hoping for a double dose of luck here
In April I bought for 14p
May bank holiday I was seriously ill with burst appendix and sepsis. I was in coma for 4 days and nearly died. In hospital for 2 weeks, but have fully recovered. Yay to nhs!
Anyway when I woke, checked shared and Amigo had doubled to 24p. I sold making 5k.
I bought in again last week at 9p using my 5k profit.
So free ride for me, but hope this goes well for all
Here is a free saved copy from the Times article.
Click 'N' Read. Zoom in to expand if you're using a mobile phone. https://archive.vn/LxERT
I’m fact you’re the funniest person I’ve never met
Your funny
I don’t see this article as negative at all. It’s clearly been written with Amigo’s input. The fact they are using Gary’s Image as oppose to the putty men says it all.
- the headline of the article eludes to a second SOA (NO INSOLVENCY).
- the mention of new products show plans of future growth and relending.
- the mentioning of loss this year pre-empty results but this “LOSS” is the result of circa £30/40M being kept aside for redress which WILL increase SOA 2’s overall pot.
Good things no s to come Amigos! GLA
STFU, what does GJ have to be remorseful for? He has come in when the ship has been sinking and steered us to much calmer waters. What he has achieved in under a year as CEO is remarkable and something that the majority of CEO's do not achieve in their 40 year career.
Get ready to be surprised then, new lending procedures on the horizon 34.9% reducing down to 29.9% rewarding on time payments, lower than most bank overdrafts and credit cards. Giving people who are excluded from mainstream lending another chance to borrow at a *reasonable* in context rate.
After the float, led by investment bank JP Morgan, Benamor was the largest shareholder, followed by Neil Woodford’s fund and Invesco. Benamor, 44, left the board shortly after the float, making a three-month comeback in December 2019. He then embarked on a series of attacks on the company but ended up selling off his 60.7 per cent holding over 60 days last year after a failed attempt to oust the board.
Jennison, who joined as a non-executive in August last year and named chief executive a month later, said that only one institutional investor holds shares, with 88 per cent held by 8,000 private investors, an average holding of £4,500. Even the institutional investor is unusual. JP Morgan is shown as holding 12 per cent but Jennison said it was likely that this was on behalf of hedge fund Bybrook Capital.
Jennison, who stands to make £1.9 million in five years if the share price reaches 30p, has not had a good start. In May, a High Court judge refused to back a scheme of arrangement supported by customers after the Financial Conduct Authority said it was not generous enough.
Amigo offered 15 per cent of profits over four years and up to £35 million in the pot for redress. Jennison said: “We’re not going to have more than £35 million in total but maybe we can change the timing of it.”
John Cronin, analyst at Goodbody brokers, said the scheme of arrangement was crucial: “There’s a lot of cash on Amigo’s balance sheet, but that will be quickly eroded if the complaints keep coming in. If they didn’t get a scheme approved ... there’d be an ongoing question mark.”
Assuming it can restart lending, Jennison wants to move away from the 49.9 per cent headline rate. Jennison wants what he calls “Amigo 2.0” to cut the borrowing rate to 34.9 per cent. Customers who pay on time for the first six months will get a cut of five percentage points and so on to get to the reduced rate.
Amigo dominated the guarantor lending market, and the field of options for customers who are turned away by conventional lenders is diminishing. Jennison said the demand was there, with the website getting thousands of hits a month.
“Companies like Amigo matter, because currently, 25 per cent of the adult population cannot get money from the mainstream banks, so what’s going to happen when furlough unwinds?” Jennison said.
That may be some way off. It could be November before any revised scheme of arrangement reaches the courts. Jennison has his work cut out.
Amazing read and shows how hard Gary and the team have been working behind the scenes. I've been under the radar since SOA1 failed but still here, I know alot have got frustrated at the lack of news but no news was good news. Is this something that will be thrashed out this week... No, but a little patience til the end of the year should see the majority make their losses & some back.
Article -
The caller to Amigo’s customer service line had a problem. Her son had been admitted to hospital and she needed to pay for taxis to visit him. She told the sub-prime loans company — known for its 49.9 per cent interest rate — that this would stretch her finances so much that she would not be able to make her next repayment on time.
“I thought, goodness me, just how close to the wire some of these people live,” said Gary Jennison, who in September was parachuted in to run the troubled group that lends to customers who can find a guarantor.
Jennison, 64, is the new face at the helm of a business with financial troubles of its own. Figures this week — delayed from last Thursday — seem likely to show that losses for the year to the end of March have ballooned from £37 million in 2020 and £87 million so far this year.
James Benamor founded the sub-prime lender Amigo
James Benamor founded the sub-prime lender Amigo
A bill for mis-selling is blowing a hole in the business. In the first six months of its financial year, Amigo paid out £48 million. Jennison will give “a much bigger number” this week.
Having installed a new management team, Jennison has spelt out the harsh truth to investors: without a court-sanctioned deal to cap its liabilities, Amigo will have an “insolvent balance sheet”.
Amigo’s fall has been as dramatic as it has been colourful. Founded by James Benamor, a self-confessed former petty criminal from Bournemouth who later took over the Bestival music festival, it was propelled into the FTSE 250 index at the time of its float in 2018 with a market value of £1.4 billion.
Last week, Amigo was worth just over £40 million and its share price closed at about 8p. Jennison said it had “pushed too hard, over-traded” and grown “too quickly” in the three years leading up to its listing. Borrowers were offered new loans while repaying existing ones, and the definition of guarantor had grown too wide, he said. A change in approach from the Financial Ombudsman about affordability criteria, which the ombudsman disputes, has also been cited and predatory behaviour by claims management firms. To prove his point, Jennison has made a bogus claim through a claims management firm, which he says has never contacted him personally but still lodged his claim.
The business stopped new lending in March 2020. Jennison is clear that even if his turnaround plan succeeds, Amigo will never return to its former stock market value and its lending will change. “That was just pie in the sky, a ridiculous situation,” Jennison said last week of the float