Revenues drop at Amigo as it continues its orderly wind down

The guarantor lender, which is currently progressing through an orderly solvent wind down of its business operations, has also seen the number of customers on its books drop by 60.3% from 73,000 to 29,000 while its net loan book decreased by 67.1% from £138m to £45.4m.  

Earlier this year, the business announced it would be winding down its operations after struggling to gain the capital it needed to execute its scheme of arrangement. To do this, the firm needed to raise £45m to cover the equity capital required for this – however the firm hadn’t received enough interest to reach this figure.  

Following this, the board explored whether a potential new scheme which would have required a reduced amount of capital investment would succeed – concluding achieving this would be highly unlikely and has resulted in the business pursuing this “fallback solution”.  

Reflecting on the latest results, Amigo Loans chief executive Danny Malone said: “These results come at a very sad time for Amigo. Despite the hard work and dedication of all of Amigo’s employees, economic and market conditions made it impossible for the company to raise the capital required to continue lending. 

“Our priority now is to progress the orderly wind down of the business, ensuring we are able to maximise payments to redress creditors, whilst continuing to provide the best level of service possible to our customers and support for our staff. I am grateful to our employees who are giving their all at a very difficult time. 

“I regret that market conditions caused us to be unable to move forward with the new Amigo business. As we announced in June, while we have been engaging with potential providers of investment to allow the business to restart, the board of Amigo considers the likelihood of success to be very low.

“I have been proud to both serve as Amigo’s chief executive and of the many hurdles we overcame despite the final outcome. Whilst there is still work ahead as we complete the wind down, I would like to take this opportunity to thank all our people for their continuing dedication and, as they prepare to leave the business in the months ahead, wish them well for the future.”