Member Info for nursesteve

I received a email reply to my follow up question during the Q1 presentation about the rate of upheld complaints (which prior to end of year results was 76%).

“ Thank you for your email. We were not able to answer your question as we have not disclosed the uphold rate, either for Q1 or previously. You may have seen uphold rates quoted that are published by the FOS either for the sector or for Amigo specifically”

I then went onto the FOS site:

https://www.financial-ombudsman.org.uk/data-insight/quarterly-complaints-data

it would seem that the upheld rate has increased. The FOS state:

“New complaints about guarantor loans increased by 177% (to 1,017) this quarter”

“Uphold rates for complaints about guarantor loans and home credit remain high at 85% and 86% respectively.”

While not specific to Amigo, I believe Amigo make up the bulk of guaranteed loan business in the UK.

I asked the person who sent the response from amigo for a comment and if they could provide Amigo’s rates of upheld complaints but as yet I’ve not received an answer.

I’m still a firm believer in the potential of amigo and in my personal opinion it needs its founder JB back in the driving seat. He has shown he cares more about it and the ethos of the idea behind it rather than if he personally gains and I believe that with his guidance and sticking to the founding principles it will return to being a successful profit making business.

Trying to add to the debate here as I’m off on a cycling holiday today and won’t be able to check in here until the evenings,

I’ve just listened again to the Q1 presentation where my question was asked (at 42.50).

Q If amigo haven’t identified a systemic problem in the high number of complaints that have been up held [76%] how can investors have faith in the business going forward?

The CFO didn’t say they had been paying just to settle claims but that in future they would lend ‘in a more prudent manner’, (after tightening up on score cards and assessments).
Incidentally the CFO also answered a question (from Ian at 42.30) where he said compensation wasn’t been paid out of the securitization pool (money set aside to pay valid claims), implying this amount is the cost of the loans being considered for compensation and doesn’t include future compensation payouts.

The implications of this being the amount of people amigo will lend to in future will shrink and those claims still to be decided will have a material impact on the Amigo balance sheet, ( I believe the share price already reflects this situation and I’m not posting this to ramp down the share price as I’m all in here and believe the company will very soon recover and has great potential to ‘multi bag’ from it’s current share price - particularly if JB gets back involved).

I can certainly see why JB wants the CFO to go and why he originally had to get back involved. I also believe that a line needs to be drawn under the claims and faith in the business going forward restored for investors. This could perhaps best be demonstrated by reducing the high payout ratio. I will be asking via email what percentage of claims have been upheld since that 76% upheld figure was calculated as my question was originally asked at the year end results session. I will let this board know if I get a reply. It will be of interest to investors for amigo to report the upheld rate of complaints in any results going forward and if it reduces significantly could be an indication of responsible lending to customers and the FCA going forward.

Does anyone think that the BoD may not call for a vote? The wording on their RNS states
“ In accordance with Section 304(1)(a) of the Companies Act 2006, the Company must post a notice of general meeting, containing the valid resolutions set out in the Requisition Notice, to its shareholders by no later than 17 September 2020.

The Company is consulting with its regulators and its advisors about the implications of the notification and the appropriate next steps.”
Given that JB’s daily sales will see him selling his last 0.66 on 10th he will no longer be a a shareholder with the rights to call for a vote then? The BoD might see some legal way of saying the proposed vote and meeting has been cancelled?

BTW I do think if they do this it would only delay things and mess JB around but that might be all they want to do?

Evening Figgy, sorry I didn’t reply earlier I got out into Chelmsford with my wife meeting up with my eldest and his wife before the worse of the rain started.
Thankfully I’ve retired now but my career in the forces did me well, working as a combat medic with 5th Airborne Bde before training as a nurse specializing in critical care. So I appreciate having time to devote to my own family now without those last minute calls to support 16 AASG.
I hope your career is treating you well?

I’m fairly new to share trading but have gone all in on Amigo because I could see the potential in Dec 19 when I took a small punt at 68p a share. Thankfully I’ve averaged down below 10p a share now and although I might follow the excellent advice about trading a 10% holding on spikes I wouldn’t want to be all out and miss out.

Strangely we might see RNS showing members of the BoD buying on Tuesday but I don’t think they will be selling to JB or thanking him! - all upwards pressure on the share price though!

Thanks for the replies. I guess it’s a bit academic as JB will finish selling soon anyway so if that’s been holding things up we will see then.

So if there was an offer made to JB at 20.9p a share. Then why hasn’t that person been buying up shares at these prices? Would they be waiting for JB to finish selling? Then make a takeover offer?

I’m also voting with JB now. That was the BoD chance to sway me and they haven’t.

Thanks for the reply HH.

Definitely not pleased if that’s also what they intend to be doing when they restart lending.

He did miss out the high payout rate too (76%) “If Amigo haven’t identified a systemic problem with the high numbers of upheld complaints (76%) how can investors have faith in the business going forward?”

I also tried to ask a question online this time to ask what the upheld % rate was now?

? No systemic problem identified but happy to start lending again?

JB has said he values this at 5x a previous offer he rejected at 20.9p a share. He also is willing to buy back in at 20p a share (or more). The BoD have said lending can start at the end of the year.
Remember the quote “ the stock market is a place for taking money from the impatient and giving to the patient!”

I used to drink snakebite but as I grew older my taste changed. Each to their own.

Hopefully JB will post some good news soon and the mornings RNS results adds some rocket fuel to the share price!

I do enjoy sharing a bottle or two with my wife and a group of the netball girls.

Could have been lower if I’d followed Mark1973’s lead on selling and buying back in lower. Still got the Prosecco ready!

I don’t know JB’s but mine is 9.3p

Just topped up during that dip at 11.9p. I’m all in now.
Maybe I should have posted under big balls thread as it definitely wasn’t my 2.25m buy!

Brucet69 you called it! Certainly gaining ground now.

Very true Cando. Also an offer was made to JB at 20.9 when he owned 60% of the company which he rejected as he valued it far higher. Glen last bought at 38p a share. Dividends last year exceeded the current share price. Plus BoD rejected JB’s tweeted offer with Glen saying he would resign so they must have something in mind for tomorrow’s results.

I’d part with my shares for 30p!

A notable part of those results was about the formal sale process. which mentioned a number of potential acquirers, “which made indicative offers that were materially above where Amigo's shares were trading at the time” If anyone of them were still interested then it might make sense for them to be buying up RB’s shares or at least wait till he’s sold them all and brought the share price down before making any other offer.