Amigo profit slips on higher impairment charges

Writer,

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.


Related content

Amigo warns on financial future after swinging to a loss on higher impairments

Guarantor loans provider Amigo warned on its financial future after swinging to a loss as provisions for loan impairments jumped following a material impact form...

Mon, 20/07/2020 - 07:36


Amigo to reappoint Glen Crawford as CEO in August

Guarantor loans provider Amigo said Glen Crawford would be re-joining the company as chief executive officer.

Crawford's appointment was expected to take effect from 1...

Wed, 08/07/2020 - 09:50


Amigo warns of higher cost from regulatory probe into its lending practices

Subprime lender Amigo warned that the cost of remedies related to a UK regulator's probe of its lending practices would be materially higher than a...

Fri, 03/07/2020 - 14:06


Stocks that have failed to recover from coronavirus

Author: 

Stock markets around the world have staged a big recovery from their March lows, yet there are many individual companies that have stubbornly failed to...

Thu, 25/06/2020 - 00:00


Amigo warns 'substantial increase' in complaints expected to be 'material'

Lender Amigo warned that the 'substantial increase' in the rate of complaints received was expected to be 'material.'

'Since our announcement on 8 June,...

Mon, 22/06/2020 - 10:10