RE: Reply is out24 Aug 2020 08:17
Response to social media speculation
The Board of Amigo has noted the blog statement made by James Benamor after hours on 21 August 2020, in which he sets out his views on, and proposals for, the future conduct of Amigo's business and operations. The Board further notes that Mr Benamor's proposals were not released through a Regulated Information Service (a link to the blog statement is here).
Whilst the Board feels no compulsion to respond to Mr Benamor within his requested timescale, it is concerned to avoid any further unnecessary market uncertainty and therefore wishes to make its position clear without delay.
The Board agrees with Mr Benamor that Amigo continues to face significant challenges to its ongoing operations. It also agrees that the reappointment of Glen Crawford as CEO of Amigo is a critical step for the business in navigating through the issues we face and returning Amigo to full health as quickly as possible. Mr Crawford has been engaged with the business since 1 August 2020 as CEO designate, pending Financial Conduct Authority ("FCA") authorisation to take up his functional responsibilities as CEO and a member of the Board.
The Board, which now includes Jonathan Roe, as Chairman designate, and Gary Jennison who both joined as Non-Executive Directors earlier this month, is unanimously of the view that Glen Crawford remains critical to turning around the fortunes of the business.
Mr Crawford and the Board are aligned in their view that Amigo must, as a first step, focus on resolving customer complaints in a fair and legal way, and that it should do so by working constructively with the FCA and the Financial Ombudsman Service, while at the same time fulfilling its obligations to the Company's other stakeholders.
The Board agrees with Mr Benamor that Amigo fulfils an important role in meeting the needs of customers who require our help and are otherwise excluded from obtaining credit in the regulated market and, therefore, are equally aligned in our commitment to the UK market and to returning the business to active lending, as soon the Board deems it appropriate to do so.
Mr Crawford has made it clear to the Board that he is not prepared to work with Amigo in any circumstances where Mr Benamor returns to Amigo's governance structure in a position of influence, and that Mr Crawford's decision to return as CEO was predicated on the clear statement from Mr Benamor that he was selling down Richmond Group Limited's controlling shareholding in Amigo to a position of zero.
In the event that Mr Benamor elects to requisition a general meeting for shareholders to vote on his proposals, and should he be successful in gaining shareholder approval for his proposals, the Board has agreed with Mr Crawford that he may terminate his employment contract immediately. The Board is strongly of the view that such an outcome would be materially detrimental to the interests of the Company and its shareholders taken as a wh
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