22nd Nov 2024 15:35
(Alliance News) - Amigo Holdings PLC on Friday said it has runway for approximately the next four months and is open to proposals for a reverse takeover as it gave an update on the wind-down process in its half-year results.
Amigo is a Bournemouth, England-based mid-cost credit provider now in run off. In March 2023, Amigo announced that its subsidiary Amigo Loans Ltd had ceased offering new loans and it would start the orderly solvent wind-down of the business.
In Friday's interim results, it said if no viable solution is found before the company runs out of money, a general meeting will be held to ask shareholders for approval to delist from the London Stock Exchange and enter voluntary liquidation.
Shares in Amigo Holdings fell 16% to 0.53 pence in London on Friday afternoon.
Amigo said it has completed the sales of legacy loan book portfolios and GBP85.1 million of refunds and GBP72.9 in cash redress have been paid.
After the costs of the wind-down are met, all cash and assets of the legacy business are pledged to creditors under a court approved scheme of arrangement, with no return to shareholders.
Revenue fell to GBP100,000 in the six months to September 30 from GBP2.8 million in the previous year. This reflects interest received on live loans.
Pretax loss narrowed to GBP100,000, compared to a loss of GBP6.7 million in the same period last year. The lost represents running costs for the first six months.
Cash reserves also fell to GBP22.5 million at the end of September from GBP121.6 million last year, following refunds due under the scheme and payment of operational costs.
Chief Executive Officer Kerry Penfold said: "Initial scheme payments are almost complete, and we have concluded the sale of the loan books. This means that we are nearing completion of the operational wind down of the business. I continue to be very proud of and grateful for the ongoing resilience of all our staff and their determination to support customers and each other through this process.
"We are continuing our search for a reverse takeover partner, following our equity raise and the appointment of Jim McColl to our board. If a reverse takeover were to go ahead, it would deliver some value to shareholders that would otherwise not be possible," she added.
Jim McColl joined the board on September 1, after initially joining as a consultant, to help "search for an alternative future".
By Michael Hennessey, Alliance News reporter
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