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Just to clarify though that the court didn't assess the Wind Down option as the New Business Scheme was approved.
Blueskyboy i totally see what you are saying and i cant deny reading todays RNS im amazed the SP isnt far lower than it is... Ultimately the BOD need to reassess the plans... Im not so sure an SOA 3 will succeed but the FCA must look at this to understand that yes an SOA must be punishing to a business but the principle is to help it to survive... the SOA 2 gave all the £ left in the business to the creditors + £15m from funds of an empty shell... yes Shareholders should accept some of the burden i have never disagreed with that... the fact the FCA stated this and wipe out shareholders (SP was 30p at the time) we are now at 2p they have their 95% dilution... they surely cant dispute the impact on shareholders.
If this fails i clearly dont see how the FCA can be satisfied with the outcome...
Creditors will lose out - who will actually need the refund
Sub Prime lending for people who need it will lose out - As much as people argue about sub prime there is a huge need for it.
I guess i am taking comfort at the fact that there is far more transactions at the buy price today than sell price...
Just a rant i guess :)
From the announcement yesterday i was interested in the pause of this product... Guarantor loans is what amigo was based on so why pause it???
Reward Rate is different... this is taken from their return to lending RNS
"Volumes of guarantor loans are expected to be higher initially with the non-guarantor unsecured loan becoming the larger product in the medium term."
So they was expecting guarantor loans to be easier to process/approve in the short term - Clearly not the case
However they did expect Non-Guarantor Loans to be the main thread of business in the future... this is what Reward Rate was expecting to be their main product.
Why is this important to consider...
By Pausing the product this should reduce costs
Reduce costs should reduce £45m required
Also reduce the chance of issues/complaints as only 1 party requiring checks not 2
Higher acceptance rate - Clearly focus on the areas that you get more fruits from
Im not saying this is the golden nugget but do feel there is merit in this decision and should make it easier to achieve funding... £45m was the first request... Now they are balancing what they really need
This Base Scenario is interesting... It only states additional new funding beyond the equity raise.... No such value of the additional funding stipulated!!!
The Base scenario assumes that:
• the conditions of the Scheme (explained above) are met in the required timescales
• balance adjustments and refunds resulting from complaints in the Scheme are consistent with the assumptions that underpin the complaints provision reported as at 31 December 2022 (see note 2.2.1)
• at least the minimum committed amount of £112.0m is paid out as cash redress in the Scheme, being £97.0m from existing resources and future collections plus an additional £15.0m following the equity raise
• additional new funding is received beyond the equity raise to facilitate future growth of the business
• collections on the existing loan book continue in line with expectation
As stated here:
· Net unrestricted cash of £91.1m at 31 December 2022 (Q3 FY2022: net cash of £52.9m) driven by the continued collection of the back book and limited originations in the period. However, substantially all the Group's net cash is committed to the Scheme.
No I dont believe that is right... the remaining unrestricted cash goes to the scheme.
I do believe they can fund the business for 6 months on the funds that they have already achieved for a RI they can then look at alternative financing for the remaining £20m that is potentially needed...
I agree... Ask yourself how does it look if the SOA fails because the constraints from the FCA on 19:1 dilution and Fine restrict the company into a wind down... there is no benefit in doing the SOA at all and has wasted 2 years and so much financial waste and Creditors are worse off... that does not look good on the FCA at all...
The FCA need this to be a success as this is a way many companies will deal with the issue!
I cant deny it has crossed my mind since the latest RNS that the wind down option is going to happen...
I just dont believe they would wait another 2 weeks... or invite shareholders to Bournemouth to tell them you lost everything...
They have time to find an investor now No FCA fine which would have stopped any investor
The FCA has approved Amigo to return to lending... it states that in the RNS today.
The issue is the £45m raise which they cant get a commitment for the full raise... this was always going to be the sticking point after they raised it from £15m to £45m.
They have debt facilities lined up... its the funding... I think this will all be resolved.
Jimmy... At which point do you stop going on about the bad practices of the past and look at the fact the SOA has been approved and RewardRate is the new business going forward with FCA support and new directors onboard... the SOA that has been sanctioned by the court with FCA support has dealt with the bad practices... smell the strong coffee the future is brighter than the past
Jimmy,
A number of points you make are assumptions... in all fairness that is a bit of what you do when investing... some are more known (Facts) some are assumptions that you can make in certain circumstance...
so firstly you say you dont think i understand how the this market has been operating... Im not going to share my whole background but safe to say that since working in financial services since 1995 in Retail and Commercial lending... i have a fair grasp... I would never say im the oracle as i always believe you can learn... also you can look at things half empty or half full...
Regarding your points you refer to you must appreciate that Lloyds, Barclays, Santander will review their lending policies (appetite) which will restrict lending (which was the same in the credit crunch and any previous recession) which opens the doors to other lenders to people that wouldn't have needed a company like Amigo previously... that for me is the opportunity! (Glass half full or glass half empty)
If the sector has been torched...
If that is the case then why would the FCA stand in court and give the judge the perception that relending will commence... which is a huge factor for the SOA to be successful... or are you saying the FCA would lie in court?
Another pointless statement from you TF with no facts evidence or merit to the words you put!
Jimmy, you have a very idyllic view on things... the era of lending to people who cant afford to repay is over...
Firstly no lender wants to lend to people that cant afford it... Bad debt is not what any lender wants...
Secondly and to your point in question who will use Amigo (people will go to whoever will accept them for a loan) you are broadbrushing everything as people cant afford it wont make payments then complaints FCA come back in and kill the business... thats like saying that following the pandemic nobody will fly so IAG and RR will go bust... which wont happen either...
Why do people use starling over Barclays, why do people use credit unions over Credit cards etc etc... If amigo get the proposition right, products, and services, market them appropriately for 2022 and manage it effectively monitoring bad debt they will have a business and a profitable business in the future.
Jimmy, you seem to invest a fair amount of time commenting on here with a share that you have little regard for as a company and even more pessimistic view of its future and its market sector... in fact you only ever post on here and Morses club which you have although your focus is certainly more on Amigo... i guess youll get more involved in Morses when the SOA kicks off... Enjoy
Why would they not want to run out before dilution... the more they lend the more they can back up the merits of the RI... the easier it is to raise funds.
Also if they run out they have the knowledge of the merits of the products and opportunity to refine processes/products before major relaunch following RI
For every negative there is a positive!
Hedged... and Inky as you are probably the same person...
Hedged stop stating how amazing you are and how correct you are... cant be right im afraid:
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15th June 10:18
Like i said, i like this share below 5p. Was happy when it hit my target.
Patience was key.
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Your post then was in reference to the SP hitting 4.84p the 14th June (the buy price would have been Higher) so as your patience was key did that mean you bought or not? as if so your still not in profit as i type this...
but i guess you will say no you didnt buy as most of your posts are open ended and ambiguous so you can then say how amazing your views are...
utter rubbish and a waste of time