(Alliance News) - Amigo Holdings PLC on Thursday said its performance over the first nine months of its current financial year was hurt by Covid-19 related payment holidays.
The guarantor loans lender said the number of customers in the nine months to the end of 2020 fell by 33% to 156,000 from 232,100 a year prior. Its net loan book declined by 43% year-on-year to GBP412.2 million.
Amigo reported revenue for the nine months down 37% to GBP137.5 million and said it swung to a pretax loss of GBP81.3 million from GBP53.5 million profit generated in the nine months to the end of 2019.
The company said it has granted Covid-19 related payment holidays to over 62,000 customers as at the end of 2020. As at the end of January this was over 63,000 with over 12,000 plans still active.
Amigo said monthly collections remain robust at 82% of pre-Covid-19 expectations.
"Amigo has made considerable progress over the third quarter of our financial year with an entirely new Board enabling a fresh and different approach, focused on customer outcomes. Following the period end, we initiated our scheme of arrangement process," said Chief Executive Gary Jennison.
The scheme of arrangement process was initiated on January 25 and is designed to provide a fair outcome to customers with a complaint against Amigo. There are 700,000 past and 300,000 present borrowers and guarantors, the company said. If approved, the scheme is expected to become effective in May.
Amigo recorded a complaints cost of GBP116.2 million in the recent nine months, up from GBP26.6 million a year before, and it made a GBP150.9 million provision against future claim payments, up from GBP18.7 million.
Amigo shares were trading 5.8% lower in London on Thursday morning at 10.80 pence each. A year ago, Amigo shares traded above 50p.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Amigo (AMGO)