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Amigo Holdings

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Amigo Holdings
Company typePublic
Traded asLSE: AMGO
IndustryFinance
Founded2005
FounderJames Benamor
HeadquartersBournemouth
Area servedUnited Kingdom
Key peopleJonathan Roe, Chairman
Danny Malone, CEO
ServicesGuarantor loans
Revenue£210.8 million (2018)
Operating income£66.1 million (2018)
Net income£50.6 million (2018)
Websitewww.amigoloans.co.uk
www.amigoplc.com

Amigo Holdings is a guarantor loans / subprime lender. It is listed on the London Stock Exchange.

History

Amigo Holdings' offices in Bournemouth

The company was established as a mid-cost guarantor loans lender by James Benamor in 2005. Benamor stood down as CEO, handing over the role to Glen Crawford, in 2015. In June 2018 the company was the subject of an initial public offering on the London Stock Exchange which valued the company at £1.3 billion.

The company announced in July 2020 that it would be providing at least £35 million in order to address consumer complaints regarding lack of checks on affordability when taking out a loan.

Amigo Holdings trading as Amigo Loans was involved in a case in Redhill County Court on 14 September 2016, when a Miss Abbas successfully defended a claim of circa £5,000 by Amigo Holdings on the basis that she never received a copy of the loan agreement.

On 1 June 2021, it was reported that Amigo faced possible bankruptcy after a High Court judge rejected an attempt by the company to cap payouts to customers. Gary Jennison, Chief Executive Officer of Amigo, commented: "Without a scheme, Amigo faces insolvency as it will be unable to satisfy its customer compensation claims as well as meeting the legally binding funding obligations owed to its secured creditors."

Operations

The company is a business which issues mid-cost loans with payments guaranteed by a borrower's family or friends. The amount lent is up to £10,000, with a 49.9% APR, higher than loans from mainstream banks, but lower than high-cost products such as payday loans or rent-to-own. The company has secured around 88% of the guarantor loan market in the UK.

Ownership

Approximately 61.4% of the company was owned by Richmond Group, a business controlled by James Benamor, the founder. Benamor sold his complete shareholding in June and July 2020 after failing to change the composition of the Board of Directors.

References

  1. ^ "Annual Report for year ended 31 March 2018" (PDF). Amigo Holdings. Retrieved 7 September 2018.
  2. "Guarantor loans provider Amigo set for London IPO". Financial Times. 7 June 2018. Retrieved 7 June 2018.
  3. "Glossary Terms - FCA Handbook". www.handbook.fca.org.uk.
  4. ^ "Sub-prime lender Amigo valued at 1.3 billion pounds in London IPO". Reuters. 29 June 2018. Archived from the original on 29 June 2018. Retrieved 7 September 2018.
  5. "Lender Amigo to set aside more cash to settle complaints". Reuters. 3 July 2020. Archived from the original on 6 August 2020. Retrieved 8 July 2020.
  6. "Landlord Advice UK Abbas-v-Amigo Loans". landlordadvice.co.uk. 18 June 2017. Retrieved 16 May 2021.
  7. "Amigo faces insolvency after court throws out payouts bid". London Loves Business. 1 June 2021.
  8. "Amigo Loans arrives to high expectations". Investor's Chronicle. Retrieved 5 July 2018.
  9. "Guarantor loans provider Amigo set for London IPO". FT. 7 June 2018. Retrieved 7 September 2018.
  10. "Amigo Loans reports 40% jump in revenues". Financial Times. Retrieved 27 November 2018.
  11. "Lender Amigo hits London market with £1.3bn valuation". Financial Times. 29 June 2018. Retrieved 29 June 2018.
  12. "Prospectus". Amigo Holdings. p. 5. Retrieved 7 September 2018.
  13. "Amigo founder instructs broker to sell entire stake if company board is not replaced". Proactive Investors. 18 June 2020. Retrieved 21 June 2021.

External links

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