Why should Shareholders support the current Board?18 Sep 2020 20:56
The Board has spent a considerable amount of time, effort and resources over the past few months to build a team with extensive experience, to stabilise Amigo and ensure it is best placed to navigate the issues it currently faces and take the business forward. In particular, the Board believes that the reappointment of Glen Crawford is a critical step for the business in navigating through the issues faced and returning Amigo to full health as quickly as possible.
The Company is currently facing a number of urgent and time critical customer issues, including: (i) a backlog of complaints; (ii) a high rate of new complaints; (iii) an investigation by the FCA into the Group’s affordability practices since 1 November 2018; and (iv) the putting in place of appropriate forbearance measures, as required, for around 47,000 customers, who have asked for mandatory Covid-19 forbearance protection, when the current mandatory period ends at the end of October 2020.
All of these issues are against the background of an anticipated rapid increase in the rate of unemployment as the Government’s furlough scheme comes to an end in October 2020 and which may impact Amigo’s customers. Each of these issues is extremely serious; collectively they are capable of impacting the Company’s ability to continue as a going concern. For these reasons, any unnecessary changes to the Board at this critical and unprecedented time is not in the best interests of the Company or its Shareholders as a whole and may be disruptive and damaging to the Company, its stability and ability to focus on the current key challenges facing the business and to take the business forward.
In parallel, the Board and the senior management team are focused on recommencing lending, developing the Group’s strategy and seeking out new business opportunities, all with the aim of maintaining and advancing the Group’s position as the leading provider of guarantor loans in the UK. The Board is focused on the future of the business and is looking forward to engaging with its new and diverse shareholder base as it commences the next chapter in its development.
The Requisition Notice provides an unnecessary distraction to the Board and the senior management team and diverts the Board and senior management from progressing with these activities. If the Resolutions are passed they will create considerable uncertainty and destabilise the Company.
The resolution to remove Roger Lovering is unnecessary. Mr Lovering has always stated his intention to step down after an appropriate handover period, once Jonathan Roe has received regulatory approval for his role. The hand-over period will also include the FCA’s approval of Gary Jennison as Chairman of Amigo’s Risk Committee and Glen Crawford’s approval as CEO.
Nayan Kisnadwala is an experienced CFO with a deep understanding of the Company and its current issues. Amigo will be without a CFO if the resolution is passed. It will be difficult for the
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