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Amigo swings to H1 loss as weaker lending activity dents performance
StockMarketWire.com
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Guarantor loans provider Amigo swung to a loss in the first half of the year as a pause in all new lending activity to key workers and the impact of Covid-19 payment holidays hurt performance.
For the six-month period ended 30 September 2020, the company swung to a pre-tax loss of £62.6m from a profit of £42.3m year-on-year as revenue declined 36.5% to £92.3m.
The impairment over revenue ratio fell to 21.1% from 31.1%, reflecting a significant reduction in origination, as the loan book slumped 33.6% to £485.2m.
Collections remained at 83% of pre-Covid-19 levels.
The provision for complaints increased to £159.1m from £7.5m.
We are preparing to return to lending, on a prudent basis, as soon as possible in 2021, the company said.
'Despite material uncertainties around the economic impact of Covid-19, future complaint volumes and the outcome of the ongoing FCA investigation, the board has adopted the going concern basis of accounting for the presentation of these half year results,' the company said.
At 9:36am: (LON:AMGO) Amigo Holdings Plc share price was 0p at 9.7p
Story provided by StockMarketWire.com
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