Amigo profit slips on higher impairment charges

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Lender Amigo reported a fall in profit as revenue was hurt by higher impairments amid challenges in its collections business.

For the nine-month period ended 31 December 2019, pre-tax profit fell to £53,5m from £79m on-year as revenue increased 8.5% o £218m, with the net loan book increasing 3.8% to £722.3m.

Provisions for impairment to revenue rose to £68.7m from £48.7m which the company blamed on resource constraints within its collections business. But it had since hired a new chief operating officer to address headwinds in the business.

'Amigo remains in an offer period, with our strategic review and formal sale process ongoing,' the company said.


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