George Frangeskides, Exec-Chair at Alba Mineral Resources, discusses grades at the Clogau Gold Mine. Watch the full video here.

Less Ads, More Data, More Tools Register for FREE
Stefan Bernstein explains how the EU/Greenland critical raw materials partnership benefits GreenRoc
Stefan Bernstein explains how the EU/Greenland critical raw materials partnership benefits GreenRocView Video
Utilico Insights - Jacqueline Broers assesses why Vietnam could be the darling of Asia for investors
Utilico Insights - Jacqueline Broers assesses why Vietnam could be the darling of Asia for investorsView Video

Latest Share Chat

Amigo Says Cost Of Fixing Customer Complaints To Be More Than Planned

Fri, 03rd Jul 2020 09:15

(Alliance News) - Amigo Holdings PLC on Friday said it expects the cost of its voluntary requirement with the UK financial regulator, related to customer complaints, to be substantially higher than the original estimate of GBP35 million.

The Bournemouth-based guarantor loan company on Friday said it has entered into an amended voluntary requirement, or VReq, with the Financial Conduct Authority. Amigo has agreed to reach a position by October 30 where all customer complaints are dealt with within eight weeks of them being made.

This comes after it sought a deadline extension to clear around 9,000 customer complaints in June. The extension granted means that the number of complaints covered by the VReq will increase, raising the cost "substantially higher" than the original estimate of GBP35 million.

As a result, Amigo said it will make a "material increase" in its provision for complain resolution in its financial 2020 accounts. It said it expects to release its results for the financial year that ended March 31 on or before July 23.

The company's liquidity remains strong, it said, with a cash balance of over GBP136 million as of Tuesday this week.

"Amigo has sufficient financial headroom and cash on its balance sheet to continue to fund operations and support its customers during this challenging time," the company said.

Amigo's free float of shares currently sits at 36%, with Richmond Group Ltd, its majority shareholder, continuing to sell 1% of the company every trading day. The FCA requires premium listed companies to maintain a free float of at least 25%.

Amigo shares were up 59% at 13.50 pence early on Friday morning in London. However, the stock remains down 81% since the year began.

By Greg Roxburgh; gregroxburgh@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

Related Shares

More News
18 Dec 2023 14:21

Amigo interim revenue stoops; remains open to reverse takeover

(Alliance News) - Amigo Holdings PLC on Monday said it remains open to the idea of a reverse takeover to deliver value to shareholders after reporting...

18 Dec 2023 07:56

Amigo Holdings hoping for reverse takeover as wind down continues

(Sharecast News) - Shares in struggling finance company Amigo Holdings surged on Monday - albeit from a low base - after the company said it had recei...

30 Nov 2023 21:10

EARNINGS AND TRADING: Dispensa and SkinBioTherapeutics losses widen

(Alliance News) - The following is a round-up of earnings and trading updates by London-listed companies, issued on Thursday and not separately report...

17 Nov 2023 11:49

IN BRIEF: Amigo shares rise a bit after Craven House talks collapse

Amigo Holdings PLC - Bournemouth, England-based mid-cost credit provider - Shares are restored to trading in London on Friday following a one-month su...

16 Nov 2023 14:43

Amigo takeover deal by Craven House Capital investees terminated

(Alliance News) - Amigo Holdings PLC on Thursday said that talks over its proposed takeover by investee companies of Craven House Capital PLC has been...

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.