(Alliance News) - Amigo Holdings PLC on Wednesday reported "robust" trading in its financial year-to-date.
The Bournemouth, England-based lender said collections have remained robust since the end of the financial year on March 31. Combined with effective cost management, this has given the company a current unrestricted cash position of GBP229 million, it said.
"While we continue to see increased levels of arrears, predominantly from customers exiting Covid-19 payment holidays, overall collections have been robust since the end of the year and remain encouraging," the company said in its statement Wednesday.
However, Amigo warned that it continues to operate within "significant financial constraints". New lending is suspended.
The current net loan book, after impairment, is GBP235 million. The company said it will incur future operating costs to collect out the remaining loan book.
Meanwhile, work to progress a new scheme of arrangement continues, Amigo said, with ongoing engagement with both the Independent Customers' Committee and the Financial Conduct Authority. Amigo said it on Wednesday submitted a revised scheme proposal, incorporating feedback from the ICC, along with its future business plan to the FCA and the ICC.
The scheme was proposed by Amigo to settle claims following probes from UK regulators into mis-sold loans and the way that Amigo dealt with customer complaints.
"The board remains committed to pursuing a solution that enables Amigo to satisfy its obligations to all stakeholders in the most equitable way possible," the company said in its statement Wednesday.
Amigo shares were trading 25% higher in London on Wednesday at 13.30 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Amigo (AMGO)