REG - Amigo Holdings PLC - Amigo Holdings PLC – Interim Financial Results
22/11/2024 07:15
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RNS Number : 3135N Amigo Holdings PLC 22 November 2024
22 November 2024
Amigo Holdings PLC
Interim Financial Results for the six months ended 30 September 2024
Amigo Holdings PLC ("Amigo", "PLC" or the "Company"), a former UK provider of
mid-cost credit now in run-off, announces its financial results for the six
months ended 30 September 2024.
Kerry Penfold, CEO/CFO, commented:
"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."
Headlines:
· Wind-down process: Amigo continues to operate the orderly wind down
of its legacy lending business announced under the Fallback Scheme. We are
very grateful to our staff for their continued commitment under difficult
circumstances.
· Office closure: In July 2024, Amigo moved to a much smaller office
and closed the main office due to reduced space needs.
· Claims processing: The processing of claims and payment of redress
to Scheme claimants continues. We have determined 99.98% of Scheme claims.
There remain some creditors due redress that have not provided payment
details, and we encourage them to provide these as soon as possible, to avoid
losing amounts due or delaying a final Scheme Payment to creditors. To date we
have paid £85.1m in refunds and £72.9m in cash redress. After meeting the
costs of the wind down, all cash and assets of the legacy business are pledged
to Scheme creditors. There will be no return to shareholders from the wind
down of the legacy business.
· Portfolio sales: We have completed the sales of legacy loan book
portfolios following a competitive process.
· Board composition: Jim McColl joined Amigo, first as a consultant
and later joined the Board on 1 September, aiding us in the search for an
alternative future for Amigo PLC.
· Corporate strategy: The placement completed in April and May is
expected to provide runway for PLC for approximately the next 4 months. Amigo
is still open to proposals for a reverse takeover and continues actively to
explore potential opportunities. If no viable solution is found soon and
before PLC runs out of money, Amigo will hold a General Meeting to ask
shareholders for approval to delist PLC from the London Stock Exchange and
enter a voluntary liquidation. If PLC is liquidated, shareholders will not
receive any value.
Financial Headlines:
· Provision for Claims: The provision for claims decreased by 80% to
£40.8m (from £208.0m in H1 FY2024). This decrease is driven by the payment
of claims and expenses associated with the Scheme.
· Impairment: Credit of £2.0m reflects proceeds from the sale of
loans and previously charged off debt in the period.
· Cash Reserves: Following refunds to customers due under the Scheme,
payment of operational costs and continued transfers of surplus cash to the
Scheme, the Group held unrestricted cash of £22.5m at the end of September
2024 (down from £121.6m in September 2023).
· Net Assets: At the year end (31 March 2024), consolidated net
assets were reduced to nil, reflecting that all proceeds from the wind down of
the legacy business were for the benefit of Scheme Creditors. Following the
capital raise earlier in the year, net assets of £0.1m represents the
remaining cash available to the Company to fund its search for a reverse
takeover or place itself into liquidation.
· Loan Book: After 30 September 2024, we completed the final loan
book sale and are writing-off all outstanding loans as it is not commercially
viable to sell them.
· Losses: The Group reported a pre-tax loss of £0.1m (compared to a
loss of £6.7m in the same period last year). With costs of the legacy
business fully provisioned at year end, the loss represents PLC running costs
for the first six months.
Contact Information:
· Nick Beal, Chief Restructuring Officer, Amigo
· Lansons - Team Farner PR:
amigoloans@lansons.com (mailto:amigoloans@lansons.com)
Ed Hooper
· Sponsor - Beaumont Cornish
0207 628 3396
About Amigo:
Amigo is a public limited company listed registered in England and Wales with
registered number 10024479. Its shares are listed on the Official List of on
the London Stock Exchange. Amigo's subsidiary, Amigo Loans Ltd, provided
guarantor loans from 2005 to 2020 and unsecured loans under the RewardRate
brand from 2022 to 2023, offering access to mid‐cost credit to those who are
unable to borrow from traditional lenders due to their credit histories. On 23
March 2023, Amigo announced that its subsidiary Amigo Loans Ltd had ceased
offering new loans, with immediate effect, and would start the orderly solvent
wind down of the business. Amigo Loans Ltd's back book of loans is in the
process of being run off with all net proceeds due to creditors under a Court
approved Scheme of Arrangement. Amigo Loans Ltd and Amigo Management Services
Ltd are authorised and regulated in the UK by the Financial Conduct Authority.
Forward-Looking Statements:
This report contains certain forward-looking statements. These include
statements regarding Amigo Holdings PLC's intentions, beliefs or current
expectations and those of our officers, Directors and employees concerning,
amongst other things, our financial condition, results of operations,
liquidity, prospects, growth, strategies, and the business we operate. These
statements and forecasts involve risk, uncertainty and assumptions because
they relate to events and depend upon circumstances that will or may occur in
the future. There are a number of factors that could cause actual results or
developments to differ materially from those expressed or implied by these
forward-looking statements. These forward-looking statements are made only as
at the date of this announcement. Nothing in this announcement should be
construed as a profit forecast. Actual results may differ from these
statements and forecasts. Except as required by law, Amigo Holdings PLC has no
obligation to update the forward-looking statements or to correct any
inaccuracies therein.
Chief Executive's Statement
Following a difficult period in Amigo's history, the first six months of this
financial year has seen some positive developments. Jim McColl joined Amigo,
first as a consultant and later joining the Board, aiding us in the search for
an alternative future for Amigo PLC. This was only possible due to a small
amount of capital which was raised in Q1. We have continued actively to
explore potential opportunities, but success cannot be assured.
Business Performance
Amigo's customer numbers and income have dropped significantly. Compared to
the same period last year (September 2023), income is down by 97%, and the
number of customers has dropped by 95%. This is as a result of loan repayment,
the sale of legacy loan books and the writing-off of delinquent loans where it
is uneconomic to collect them. In the period, £3.4 million was recovered by
selling off legacy loans. After 30 September 2024 we completed the final loan
book sale.
Scheme of Arrangement
In May, the Scheme Supervisors announced an Initial Scheme Payment of 12.5% to
Scheme creditors due cash redress. 92% of these payments were issued in the
first 30 days. Due to operational complexity where accounts had previously
been sold, the time period over which these Initial Scheme payments were made
was extended to 120 days. A small number of claims continue to be reviewed and
we expect to complete the payment of all Initial Scheme Payments in 2024.
In addition to cash redress due in the Scheme, Amigo has also paid out £85.1m
in refunds and made £132.0m in balance adjustments on upheld and partially
upheld claims.
There remains around 5,000 Scheme Creditors due redress that have not provided
payment details. If these Scheme Creditors do not engage, there is a risk
that, under the terms of the Scheme, they will lose amounts due or that
continued efforts delay a final Scheme Payment to the remaining Scheme
Creditors and the successful wind down of the legacy businesses.
Operations and Cost Reduction
Amigo has continued to cut costs as part of its wind-down strategy. Staff
numbers have decreased to from 63 to 24 between March and September 2024.
Supplier contracts continue to be terminated where possible, and Amigo moved
its operational centre to a smaller, more flexible, office in July.
Corporate Strategy
In April and May we completed two tranches of a placing of a total of
95,019,200 new ordinary shares of 0.25p each fully paid at an issue price of
0.25p per share ranking pari passu in all respects with the existing issued
ordinary shares.
Jim McColl joined Amigo in April. Initially he worked as a consultant, and he
joined the Board on 1 September as a non-executive director. Jim McColl has
assisted the Board in the search for a potential reverse takeover target for
PLC, which would see it continue as a viable business in the long term. We are
very grateful to Jim for his efforts to date, and to our shareholders that
supported the capital raise which made this possible.
Over the last six months, and before, we have spoken to businesses in a range
of sectors far beyond Amigo's previous sphere of consumer lending. While there
can be no guarantee of success, our mantra has been to leave no stone unturned
in seeking a transaction.
As we stated at the time, the capital raised was expected to provide runway
for PLC for approximately 12 months. We are now approaching the end of this
runway. As time runs increasingly short, there is an increased likelihood that
the Directors will be faced with a difficult decision.
If no viable solution is found soon, Amigo will hold a General Meeting to ask
shareholders for approval to delist the company from the London Stock Exchange
and enter voluntary liquidation. If this happens, shareholders will not
receive any value.
The Scheme requires Amigo Loans Ltd (ALL) to be liquidated, and any remaining
assets will be used to pay creditors.
Governance
Since entering wind down, we have implemented cost saving measures across the
Group. Those measures have rightly and necessarily included individuals at
board and senior executive level. We have striven to balance the need for
proper and effective governance of a listed and regulated financial
institution with the constrained resources of a Group in wind down.
The raising of new capital allowed us to bring Jim McColl on to the Board in
September without impacting funds available for Scheme creditors. Jim brings
an impressive track record of creating valuable businesses built over nearly
three decades of experience.
The Board has taken the decision, permitted within the listing rules, not to
have these interim results independently reviewed by our external auditors. We
believe this would not be an appropriate use of resources at this time.
Financial Review
At the year end (31 March 2024), Amigo reduced net assets to nil, reflecting
that all proceeds from the wind down of the legacy business were for the
benefit of Scheme creditors. Following the small capital raise (in two
tranches in April and May of 2024) we report a small positive net assets
position for PLC of £0.1m at the half year. As reported at the time, the
funds raised provide additional runway for the Board to continue its efforts
to find an alternative future for PLC until the end of the current financial
year.
Income
Revenue of £0.1m (H1 FY2024: £2.8m) in the period reflects interest received
on live loans. The remaining interest-bearing loans have been sold as part of
the planned wind down on the lending business. After 30 September 2024, we
completed the final loan book sale and are writing-off all outstanding loans
as it is not commercially viable to sell them.
£1.8m of interest has been received in the period on funds held on deposit
for the benefit of Scheme Creditors.
Impairment and Provisions
Impairment credit of £21.0m (H1 FY2024: £2.8m) materially relates to
proceeds from loan and debt sales. Subsequent to the period end these sales
have now concluded.
Costs
Administrative and other operating costs decreased by £5.2m (57.8%) to £3.8m
compared to the half year to 30 September 2023. This reflects the extensive
cost cutting that has taken place across the business in recognition of the
wind down. The main categories of expenditure included in administrative and
other operating expenses are: employee costs of £1.8m (HY 2024: £5.2m),
licence fees of £0.3m (HY 2024: £0.8m), insurance costs of £0.4m (HY 2024:
£0.3m) and legal, professional and consultancy fees of £0.5m (2023: £0.5m).
In the six months to 30 September 2024, operating costs have been elevated by
an accrual for future business overheads to reduce net assets of the legacy
business to zero, reflecting that there is no underlying value in the legacy
business for existing shareholders.
Cash and Cash Equivalents
Cash and cash equivalents held at 30 September 2024 amounted to £46.0m (H1
FY2024: £196.4m). The reduction in cash has been driven by payments on upheld
Scheme claims over the period.
Going Concern
In determining the appropriate basis of preparation for these financial
statements, the Board has undertaken an assessment of the Group and Company's
ability to continue as a going concern for a period of at least twelve months
from the date of approval of the financial statements.
Given the cessation of trading on 23 March 2023, alongside no apparent
realistic strategic capital raise or viable alternative solutions, and the
requirement dictated by the Scheme to ultimately liquidate Amigo Loans Ltd
("ALL") (the Group's sole cash-generating unit), the Board has determined that
the condensed interim financial statements for the period ended 30 September
2024 will be prepared on a basis other than going concern, consistent with the
prior year. In making this assessment consideration was given to the potential
for the PLC to attract a reverse takeover or similar transaction. However,
such an outcome, whilst the strategic intention of the Directors, does not
have sufficient certainty in either cashflow or ability to trade to change the
basis of preparation from that adopted in the year ended 31 March 2024.
Principal Risks and Uncertainties
There remain a number of risks and uncertainties that could detrimentally
impact the successful and timely delivery of Amigo's remaining activities,
namely the successful conclusion of the Scheme and orderly wind down of the
business. Amigo continues to monitor and manage risks and ensure that adequate
controls are in place to drive better and more controlled outcomes. The Board
recognises that opportunities and risks go hand in hand and so it puts time
into understanding which risks are the right ones to take or avoid at any
given time.
Our principal risks and uncertainties are summarised below.
Credit risk
Credit risk occurs where debtors may fail to meet their debt obligations in
full or on time. There may also be exposure to concentrations in credit. As
Amigo concludes debt sales of the historic loan book, the credit risk
significantly decreases, and this risk will fall away once the loan accounts
have gone.
Conduct risk
Conduct risks arise from inappropriate actions taken by individuals or the
Group that could lead to customer detriment or negatively impact market
stability. Amigo recognises that the financial vulnerability of customers in
its target market poses higher than average conduct risks. The organisation
has a low tolerance for action or inaction that leads to customer detriment.
As we progress with the Scheme of Arrangement, we aim to pay redress, refunds
and make balance adjustments as quickly as possible. The Group is mindful that
about 5,000 Scheme creditors have not provided bank details for payments and
have not responded to related communications. Amigo is undertaking tracing
exercises to attempt to contact these claimants. Governance is fundamentally
important, and we are committed to delivering high standards of oversight with
diligence and integrity, and a strong ethical culture.
Regulatory and political risk
This risk relates to regulatory environment changes that may have an adverse
impact on the business, or where Amigo has introduced new processes or
approaches that do not fully comply with regulatory requirements. Amigo is
committed to compliance with relevant legislation, regulation, internal
policies and governance requirements. Identified breaches are remedied as soon
as possible. We maintain a constructive and open relationship with the FCA and
other regulators.
While Amigo is not actively lending, we will remain a regulated entity until
the FCA removes our permission. We still operate under a Voluntary
Requirement (Asset VREQ). Amigo has submitted a request to the FCA to remove
its permissions.
Operational risk
Operational risk relates to the possibility of business operations failing due
to inefficiencies or breakdown in internal processes, systems, people or from
external events. Amigo takes a proportionate approach to operational risk,
balancing the need to provide resilient operational performance with the need
to minimise cost for the benefit of Scheme creditors. Our operational
resilience approach ensures highly available services and infrastructure. Over
the last six months, operational resilience has been stable. In July, Amigo
was impacted by the widespread Crowdstrike-related IT outage; services were
restored within 5 hours with no significant disruptions to operations. The
risk of cyber-attacks continue to be a threat across all industries. Amigo
partners with third-party cyber experts to manage evolving cyber risks.
Strategic and competitive risk
Strategic risks come from emerging internal and external events or poor
decisions that can disrupt or prevent the organisation from achieving its
strategic objectives including an orderly wind down. Amigo's strategic focus
remains on the orderly wind down of the business and the redressing of Scheme
claims.
Amigo also continues to explore potential RTO options to minimise investor
losses.
Financial risk
Financial risks occur where there is a failure to properly manage liquidity,
capital or investments which could lead to financial losses and potentially
reduced funds available to the Scheme or in a more severe case, an inability
to complete the forecasted orderly wind down. The current focus is on
supporting redressing customers. We continue to meet our obligations to fund
redress for Scheme Creditors. Scheme monies are secured and managed by the
Scheme Administrators (PwC). Amigo continues to maintain a solvent buffer to
support wind down activities.
Responsibility Statement of the Directors in respect of the half-yearly
financial report
We confirm that, to the best of our knowledge:
· the condensed set of financial statements are prepared in accordance
with IAS 34 Interim Financial Reporting as adopted by the UK, and give a true
and fair view of the assets, liabilities, financial position and profit or
loss of the Group;
· the interim management report includes a fair review of the
information required by:
a) DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an
indication of important events that have occurred during the first six months
of the financial year and their impact on the condensed set of financial
statements; and a description of the principal risks and uncertainties for the
remaining six months of the year; and
b) DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being
related party transactions that have taken place in the first six months of
the current financial year and that have materially affected the financial
position or performance of the entity during that period; and any changes in
the related party transactions described in the last annual report that could
do so.
Kerry Penfold
Director
22 November 2024
Condensed consolidated statement of comprehensive income
for the six months to 30 September 2024
6 months ended 6 months ended Year to
30 Sep 24 30 Sep 23 31 Mar 24
Unaudited Unaudited Audited
Notes £m £m £m
Revenue 3 0.1 2.8 3.5
Interest receivable 1.8 2.8 6.5
Impairment of amounts receivable from customers 2.0 11.5 7.2
Administrative and other operating expenses (3.8) (9.0) (17.8)
Complaints expense 12 (0.2) (14.8) (12.1)
Total operating expenses (4.0) (23.8) (29.9)
Loss before tax (0.1) (6.7) (12.7)
Tax (charge)/credit on loss 5 - (0.1) 0.1
Loss and total comprehensive loss attributable to equity shareholders of the (0.1) (6.8)
Group1
(12.6)
The loss is derived from continuing activities.
Loss per share
Basic loss per share (pence) 6 (0.0) (1.4) (2.7)
Diluted loss per share (pence) 6 (0.0) (1.4) (2.7)
The accompanying notes form part of these financial statements.
1 There was less than £0.1m of other comprehensive income during
this period and any other period, and hence no consolidated statement of other
comprehensive income is presented.
Condensed consolidated statement of financial position
as at 30 September 2024
30 Sep 24 30 Sep 23 31 Mar 24
Unaudited Unaudited Audited
Notes £m £m £m
Current assets
Customer loans and receivables 7 - 24.5 -
Property, plant and equipment - 0.2 -
Other receivables 10 0.3 0.8 0.5
Current tax assets - - 0.1
Cash and cash equivalents (restricted)(1) 23.5 74.8 84.5
Cash and cash equivalents 22.5 121.6 90.4
46.3 221.9 175.5
Available for sale assets 8 - 1.1 2.7
Total assets 46.3 223.0 178.2
Current liabilities
Trade and other payables 11 (2.9) (4.6) (3.1)
Current tax liability (0.1) - -
Complaints provision 12 (40.8) (208.0) (169.4)
Restructuring provision 12 (2.4) (4.6) (5.7)
Total liabilities (46.2) (217.2) (178.2)
Net assets 0.1 5.8 0.0
Equity
Share capital 13 1.4 1.2 1.2
Share premium 207.9 207.9 207.9
Merger reserve (295.2) (295.2) (295.2)
Retained earnings 86.0 91.9 86.1
Shareholder equity 0.1 5.8 0.0
The accompanying notes form part of these financial statements.
(1) Cash and cash equivalents (restricted) of £23.5m (H1 FY2024: £74.8m)
materially relates to cash held for the benefit of customers in relation to
payments arising out of the Scheme of Arrangement.
The condensed consolidated financial statements of Amigo Holdings PLC were
approved and authorised for issue by the Board and were signed on its behalf
by:
Kerry Penfold
Director
22 November 2024
Company no. 10024479
Condensed consolidated statement of changes in equity
for the six months to 30 September 2024
Share Share Merger Retained Total
capital premium Reserve(1) earnings equity
£m £m £m £m £m
At 31 March 2023 1.2 207.9 (295.2) 98.7 12.6
Total comprehensive loss - - - (6.8) (6.8)
At 30 September 2023 1.2 207.9 (295.2) 91.9 5.8
Total comprehensive loss - - - (5.8) (5.8)
At 31 March 2024 1.2 207.9 (295.2) 86.1 -
Shares issued 0.2 - - - 0.2
Total comprehensive loss - - - (0.1) (0.1)
At 30 September 2024 1.4 207.9 (295.2) 86.0 0.1
1 The merger reserve was created as a result of a Group reorganisation in
2017 to create an appropriate holding company structure. The restructure was
within a wholly owned Group, constituting a common control transaction.
The accompanying notes form part of these financial statements.
Condensed consolidated statement of cash flows
for the six months to 30 September 2024
6 months to 6 months to Year to
30 Sep 24 30 Sep 23 31 Mar 24
Unaudited Unaudited Audited
£m £m £m
Loss for the period (0.1) (6.8) (12.6)
Adjustments for:
Impairment expense - (11.5) (7.2)
Complaints provision (0.6) 12.9 13.9
Restructuring provision - 0.9 3.1
Tax charge - 0.1 (0.1)
Interest receivable (1.8) (2.8) (6.5)
Interest recognised on loan book - (4.2) (4.8)
Loss on sale of Fixed Assets - 0.1 0.1
Depreciation of property, plant and equipment - 0.1 0.3
Operating cash flows before movements in working capital (2.5) (11.2) (13.8)
Decrease in receivables 0.2 0.7 1.0
Decrease in payables (0.3) (1.3) (2.8)
Complaints cash expense (127.9) (0.8) (39.6)
Restructuring cash expense (3.3) (0.8) (1.9)
Tax refunds - 0.8 0.8
Interest received 1.8 2.8 6.5
Net cash used in operating activities before loans issued and collections on (132.0) (9.8) (49.8)
loans
Collections 2.2 32.3 48.1
Other loan book movements 0.7 4.1 6.8
Decrease in deferred brokers' costs - 0.3 0.3
Net cash (used in)/from operating activities (129.1) 26.9 5.4
Financing activities
Share capital issued 0.2 - -
Lease principal payments - (0.1) (0.1)
Net cash from/(used in) financing activities 0.2 (0.1) (0.1)
Net (decrease)/increase in cash and cash equivalents (128.9) 26.8 5.3
Cash and cash equivalents at beginning of period 174.9 169.6 169.6
Cash and cash equivalents at end of period(1) 46.0 196.4 174.9
The accompanying notes form part of these financial statements.
1 Total cash is inclusive of cash and cash equivalents
(restricted) of £23.5m (H1 FY2024: £74.8m). Cash and cash equivalents
(restricted) materially relate to cash held for the benefit of customers in
relation to payments arising out of the Scheme of Arrangement.
Notes to the condensed consolidated financial statements
for the six months to 30 September 2024
The Board has taken the decision, permitted within the listing rules, not to
have these interim results independently reviewed by our external auditors. We
believe this would not be an appropriate use of resources at this time.
1. Accounting policies
1.1 Basis of preparation of financial statements
General information
Amigo Holdings PLC is a public company limited by shares (following IPO on 4
July 2018), listed on the London Stock Exchange
(LSE: AMGO). The Company is incorporated and domiciled in England and Wales.
With effect from 25 July 2024 the Company's registered office is 71-75 Shelton
Street, Covent Garden, London, United Kingdom, WC2H 9JQ.
The principal activity of the Company is to act as a holding company for the
Amigo Loans Group of companies. The principal activity of the Amigo Loans
Group was previously to provide loans to individuals. With the Fallback
Solution, arising from the Scheme of Arrangement ("Scheme") being implemented,
leading to a cessation of trade and implementation of a wind down plan in
March 2023, there has been no new lending in the six months to 30 September
2024. The Group continues to collect its assets and settle liabilities in line
with obligations under the Scheme.
The condensed interim financial statements do not constitute the statutory
financial statements of the Group within the meaning of section 434 of the
Companies Act 2006. The statutory financial statements for the year ended 31
March 2024 were approved by the Board of Directors on 24 July 2024 and have
been delivered to the Registrar of Companies. The consolidated financial
statements of the Group as at and for the year ended 31 March 2024 are
available on the website amigoplc.com and upon request from the Company's
registered office at 71-75 Shelton Street, Covent Garden, London, United
Kingdom, WC2H 9JQ. Those accounts have been reported on by the Company's
auditor, MHA. The report of the auditor drew attention to the fact that the
Directors had taken the decision to wind down the operations and subsequently
liquidate the Group and Parent Company and therefore do not consider it to be
appropriate to adopt the going concern basis of accounting in preparing the
financial statements. Accordingly, the financial statements were prepared on a
basis other than going concern.
The condensed interim financial statements for the six months ended 30
September 2024 were approved by the Board of Directors on 22 November 2024.
Accounting policies
The interim financial statements have been prepared applying the accounting
policies and presentation that were applied in the
preparation of the Company's published consolidated annual report for the year
ended 31 March 2024.
Basis of preparation
The condensed interim financial statements for the six months ended 30
September 2024 have been prepared in accordance with IAS 34 'Interim Financial
Reporting' as adopted for use in the United Kingdom (UK). The condensed
interim financial statements should be read in conjunction with the statutory
financial statements for the year ended 31 March 2024. The figures include
herein for the financial year ended 31 March 2024 are not the Group's
statutory accounts for that financial year but are an extract from those
statutory accounts for interim reporting.
These interim financial statements have been prepared on a basis other than
going concern under the historical cost convention, except for financial
instruments measured at fair value. The presentational currency of the Group
is GBP, the functional currency of the Company is GBP and these financial
statements are presented in GBP. All values are stated in £ million (£m)
except where otherwise stated.
Going concern
In determining the appropriate basis of preparation for these financial
statements, the Board has undertaken an assessment of the Group and Company's
ability to continue as a going concern for a period of at least twelve months
from the date of approval of the financial statements.
In undertaking a Going Concern review, the Directors considered the Group's
implementation of the Fallback Solution announced on 23 March 2023, under the
Scheme. The Fallback Solution required that the Group's sole trading
subsidiary, Amigo Loans Ltd ("ALL") stop lending immediately and be placed in
an orderly wind down, with any surplus cash following the wind down to be
transferred to Scheme creditors. ALL would then be liquidated within two
months of the final Scheme dividend. No residual value would be attributed to
the ordinary shares of the Company. Throughout the period to 30 September 2024
the Fallback Solution has progressed. Amigo's back book of loans has now been
substantially run off or sold, an interim dividend is being paid to all Scheme
creditors, and almost 90% of the Group's staff have exited the business since
implementation of the Fallback Solution.
Given the cessation of trading on 23 March 2023, alongside no apparent
realistic strategic capital raise or viable alternative solutions, and the
requirement dictated by the Scheme to ultimately liquidate ALL (the Group's
sole cash-generating unit), the Board has determined that the condensed
interim financial statements for the period ended 30 September 2024 will be
prepared on a basis other than going concern, consistent with the prior year.
In making this assessment consideration was given to the potential for the PLC
to attract a reverse takeover or similar transaction. However, such an
outcome, whilst the strategic intention of the Directors, does not have
sufficient certainty in either cashflow or ability to trade to change the
basis of preparation from that adopted in the year ended 31 March 2024.
The Directors believe there is no general dispensation from the measurement,
recognition and disclosure requirements of IFRS despite the Group not
continuing as a going concern. Therefore, IFRS is applied accordingly
throughout the financial statements. No material adjustments to the carrying
value of the consolidated assets or liabilities was required. The relevant
accounting standards for each part of the Financial Statements have been
applied on the conditions that existed and decisions that had been taken by
the Board as at or prior to 30 September 2024.
The Board has prepared a set of financial projections for continued solvent
wind down. Alongside a base scenario which indicates ample liquidity available
through the course of wind down, a downside scenario has been collated that
stresses the primary cash flow risks to the Group.
Stresses have been applied to:
• Increased Scheme liabilities
• Increased overhead spend
Despite the stresses applied, the Group maintains sufficient liquidity in the
period. It is therefore considered only a marginal risk that the Group is
unable to remain solvent during the orderly wind down. The key risks that
would prevent this from being achieved are the risks applied in the downside
scenario alongside potential regulatory action or intervention.
1.2 Amounts receivable from customers
i) Classification
IFRS 9 requires a classification and measurement approach for financial assets
which reflects how the assets are managed and their cash flow characteristics.
IFRS 9 includes three classification categories for financial assets: measured
at amortised cost, fair value through other comprehensive income ("FVOCI") and
fair value through profit and loss ("FVTPL"). Note, the Group does not hold
any financial assets that are equity investments; hence the below
considerations of classification and measurement only apply to financial
assets that are debt instruments. A financial asset is measured at amortised
cost if it meets both of the following conditions (and is not designated as
FVTPL):
· it is held within a business model whose objective is to hold
assets to collect contractual cash flows; and
· its contractual terms give rise on specified dates to cash flows
that are solely payments of principal and interest ("SPPI") on the principal
amount outstanding.
Financial assets held within a business model that is neither held to
collect, nor held to collect and for sale, would be designated as FVTPL. An
example would be financial assets that are available for sale and therefore
have cash flows maximised through sale.
Business model assessment
In prior years, the Group's business model comprised primarily loans to
customers that were held for collecting contractual cash flows, a held to
collect business model which classifies those assets as held at amortised
cost. The Group deemed that the contractual cash flows were solely payments of
principal and interest ("SPPI") and hence, amounts receivable from customers
were measured at amortised cost under IFRS 9, applying a forward-looking
expected credit loss model ("ECL").
Historically, customers have been derecognised when the entity's contractual
rights to the financial asset's cash flows have expired. Default has been
defined when an account is more than three contractual payments past due.
In light of the decision to enter into the Fallback Solution and the trigger
for an orderly wind down of the business the Board re-evaluated this business
model assessment. In the prior year, the assessment was no longer considered
appropriate for the RewardRate portfolio for which a decision had been made to
sell as a result of the wind down strategy and this was classified as held for
sale as at 30 September 2023 (note 8). This asset was measured at fair value
accordingly. The accompanying notes referred to IFRS 5 but should have
referred to IFRS 9, as financial assets are outside the scope of IFRS 5 but in
scope for IFRS 9. However, the asset was correctly measured at fair value and
therefore has not been restated. Sale of the RewardRate business was completed
in January 2024.
As at 31 March 2024, the Board reconsidered the objective of the business
model relating to the residual loan book. The primary objective of the
strategy now is to maximise cash flow through sale. In light of this
reassessment a reclassification was required. The remaining loan book was
available for sale and was therefore classified and measured as FVTPL (note 8)
as opposed to amortised cost.
2. Critical accounting assumptions and key sources of estimation uncertainty
Preparation of the financial statements requires management to make
significant judgements and estimates.
Judgements
The preparation of the condensed consolidated Group financial statements in
conformity with IFRS requires management to make judgements, estimates and
assumptions that affect the reported amounts of assets and liabilities at the
consolidated statement of financial position date and the reported amounts of
income and expenses during the reporting period. The most significant uses of
judgements and estimates are explained in more detail in the following
sections:
· Complaints provisions:
· Estimating the probability, timing and amount of any outflows (note
2.2.1).
· Restructuring provision:
· Required resource plan and subsequent timing of staff exits
· Assessing supplier requirements and recognition of onerous
contracts
Estimates
Areas which include a degree of estimation uncertainty are:
· Complaints provision:
· Upheld Scheme claimants that have made payments post the Scheme
Effective Date which will be due a refund in full. This estimate evaluates
historical data and applies future assumptions for the timing of refunds (note
2.2.1).
· Estimation of the cash liability is based on assumptions around
future operating expenses.
· Restructuring provision:
· Severance costs of staff exits which are contingent on the timing
of exit and therefore contingent on future resource required.
2.1 Credit impairment
Credit impairment is not applicable in the current period since the customer
loan book has been reclassified as available for sale assets but was
applicable for the period ended 30 September 2023.
In the prior period judgements were required to assess whether the credit risk
of an instrument has increased significantly since initial recognition and
what constituted a definition of default. Estimation uncertainty existed
around calculation of probability of default, the expected balance at default,
the loss arising when default occurs, and the incorporation of the impacts
forward looking information and macroeconomic factors have on the credit
impairment calculation.
2.2 Complaints provisions
2.2.1 Complaints provision - estimation uncertainty
The provision represents an accounting estimate of the expected future
outflows arising from certain customer-initiated complaints, using information
available as at the date of signing these financial statements.
Identifying whether a present obligation exists and estimating the
probability, timing, nature and quantum of the redress payments that may arise
from past events require judgements to be made on the specific facts and
circumstances relating to the individual complaints. Management evaluates on
an ongoing basis, revising previous judgements and estimates as appropriate.
The calculation of the complaints provision as at 30 September 2024 is based
on Amigo's best estimate of the future obligation. The Scheme cash redress
provision is £36.1m and is estimated based on future financial projections of
the orderly wind down of the Group, which therefore inherently carries a
degree of uncertainty. This estimate assumes, as per the Scheme, that all
assets of the business, other than the £0.1m cash held by Amigo Holdings PLC
at 30 September 2024, are committed to Scheme claimants.
As at 30 September 2024, the Group has recognised a complaints provision
totalling £40.8m in respect of customer complaints redress and associated
costs. Utilisation in the period totalled £127.9m. The total Scheme liability
has decreased by £167.2m compared to prior year. The closing provision is
comprised of an estimate of cash liability, an estimate of refunds to upheld
Scheme claimants for collections made since the Scheme effective date, which
will be redressed in full and attract compensatory interest, and direct costs
of the Scheme.
The following table details the effect on the complaints provision considering
incremental changes on the key assumptions, should current estimates and
estimates that are used to derive its value prove too high or too low.
Assumption used Sensitivity applied Sensitivity (£m)
Future overheads(1) £8.1m +/- 10 % +£0.8m -£0.8m
1. Sensitivity analysis shows the impact of a 10-percentage point change
in the main assumptions in the cash redress provision.
The Board considers that this sensitivity analysis covers the full range of
likely outcomes.
3. Revenue and segment reporting
Revenue comprises interest income on amounts receivable from customers. Loans
are initially measured at fair value (which is equal to cost at inception)
plus directly attributable transaction costs. Revenue is presented net of
amortised broker fees, which are spread over the expected behavioural lifetime
of the loan as part of the effective interest rate method.
The effective interest rate ("EIR") is the rate that discounts estimated
future cash payments or receipts through the expected life of the financial
instrument (or a shorter period where appropriate) to the net carrying value
of the financial asset or financial liability. The calculation takes into
account all contractual terms of the financial instrument and includes any
incremental costs that are directly attributable to the instrument, but not
future credit losses.
Given the sale of the remaining loan book, and the immaterial nature of
remaining unamortised broker fees, these items have been fully expensed.
The Group has one operating segment based on the geographical location of its
operations, being the UK.
Period to Period to Year to
30 Sep 24 30 Sep 23 31 Mar 24
Unaudited Unaudited Audited
£m £m £m
Interest under effective interest rate method 0.1 2.0 2.7
Other income - 0.9 0.9
Modification of financial assets (note 4) - (0.1) (0.1)
0.1 2.8 3.5
4. Modification of financial assets
Covid-19 payment holidays and any subsequent extensions were assessed as
non-substantial financial asset modifications under IFRS 9.
The carrying value of historical modification losses at the period end was
£nil (H1 FY2024: £1.7m).
Period to Period to Year to
30 Sep 24 30 Sep 23 31 Mar 24
Unaudited Unaudited Audited
£m £m £m
Modification (loss) recognised in revenue - (0.1) (0.1)
Modification (loss) recognised in impairment - (0.2) (0.1)
Total modification (loss) - (0.3) (0.2)
5. Taxation
The applicable corporation tax rate for the period to 30 September 2024 was
25.0% (H1 FY2024: 25.0%) and the effective tax rate is 0.0% (H1 FY2024:
negative 1.5%).
6. Profit/(loss) per share
Basic loss per share is calculated by dividing the loss for the period
attributable to equity shareholders by the
weighted average number of ordinary shares outstanding during the period.
Diluted loss per share calculates the effect on loss per share assuming
conversion of all dilutive potential
ordinary shares. Following the closure of the performance-related share
incentive plans and non-performance-related schemes, in the current period
there were no dilutive potential ordinary shares.
30 Sep 24 30 Sep 23 31 Mar 24
Unaudited Unaudited Audited
Pence Pence Pence
Basic loss per share (0.0) (1.4) (2.7)
Diluted loss per share (0.0) (1.4) (2.7)
Basic adjusted profit per share (basic and diluted)1 - 2.0 0.8
1. Adjusted basic profit per share and earnings for adjusted basic
earnings per share are non-GAAP measures.
Consistent with prior years, the Directors publish an adjusted profit per
share for comparison purposes only. There are no profits attributable to
shareholders as net assets, after the cost of collecting the loan book, are
committed to Scheme creditors. Reconciliations of the earnings used in the
calculations are set out below.
30 Sep 24 30 Sep 23 31 Mar 24
Unaudited Unaudited Audited
£m £m £m
Loss for basic EPS (0.1) (6.8) (12.6)
Complaints provision movement 0.2 14.7 12.1
Restructuring expense - 0.9 3.1
Onerous contract expense 0.1 0.6 1.3
Profit for basic adjusted EPS1 0.2 9.4 3.9
Basic weighted average number of shares (m) 555.0 475.3 475.3
Dilutive potential ordinary shares (m) - - -
Diluted weighted average number of shares (m) 555.0 475.3 475.3
1. Adjusted basic earnings per share and earnings for adjusted basic
earnings per share are non-GAAP measures.
7. Customer loans and receivables
As at 30 September 2024 it is considered that, under IFRS 9, the customer loan
book satisfies the criteria to be reclassified as an available for sale asset
(note 8).
For the prior period, the table shows the gross loan book and deferred broker
costs by stage, within the scope of the IFRS 9 ECL framework.
30 Sep 23
Unaudited
£m
Stage 1 21.8
Stage 2 5.8
Stage 3 6.2
Gross loan book 33.8
Provision (9.3)
Customer loans and receivables 24.5
Ageing of gross loan book (excluding deferred brokers' fees and provision) by
days overdue for the period ended 30 September 2023.
30 Sep 23
Unaudited
£m
Current 22.5
1-30 days 3.5
31-60 days 1.6
>60 days 6.2
Gross loan book 33.8
The following table further explains changes in the gross carrying amount of
loans receivable from customers to explain their
significance to the changes in the loss allowance for the same portfolios.
Period ended 30 September 2023 Stage 1 Stage 2 Stage 3 Total
£m £m £m £m
Gross carrying amount as at 31 March 2023 42.2 11.0 10.2 63.4
Deferred brokers fees 0.2 0.1 - 0.3
Loan book inclusive of deferred broker costs 42.4 11.1 10.2 63.7
Changes in gross carrying amount attributable to:
Transfer to stage 1 1.1 (1.1) - -
Transfer to stage 2 (2.6) 3.0 (0.4) -
Transfer to stage 3 (1.8) (1.5) 3.3 -
Passage of time(1) (11.6) (2.8) (0.7) (15.1)
Customer settlements (5.3) (1.1) (1.0) (7.4)
Loans charged off (0.6) (1.7) (5.3) (7.6)
Modification loss relating to Covid-19 payment holidays 0.4 - 0.1 0.5
Net movement in deferred broker fees (0.2) (0.1) - (0.3)
Loan book inclusive of deferred broker costs as at 30 September 2023 21.8 5.8 6.2 33.8
1 Passage of time relates to amortisation of loan balances over
the course of the financial year, due to cash receipts partially offset by
interest accruals.
The following tables explain the changes in the loan loss provision between
the beginning and the end of the period:
Period ended 30 September 2023 Stage 1 Stage 2 Stage 3 Total
£m £m £m £m
Loan loss provision as at 31 March 2023 6.1 3.3 8.6 18.0
Changes in loan loss provision attributable to:
Transfer to stage 1 0.3 (0.3) - -
Transfer to stage 2 (0.4) 0.9 (0.3) 0.2
Transfer to stage 3 (0.3) (0.4) 2.7 2.0
Passage of time(1) (1.6) (0.7) (0.6) (2.9)
Customer settlements (0.7) (0.3) (0.9) (1.9)
Loans charged off (0.1) (0.7) (4.3) (5.1)
Modification loss relating to Covid-19 payment holidays 0.1 - - 0.1
Remeasurement of ECLs (1.1) (0.1) 0.1 (1.1)
Loan loss provision as at 30 September 2023 2.3 1.7 5.3 9.3
1 Passage of time relates to amortisation of loan balances over
the course of the financial year, due to cash receipts partially offset by
interest accruals.
The following table splits the gross loan book by arrears status, and then by
stage respectively for the period ended 30 September 2023.
Stage 1 Stage 2 Stage 3 Total
£m £m £m £m
Up to date 20.4 2.1 - 22.5
1-30 days 1.4 2.1 - 3.5
31-60 days - 1.6 - 1.6
> 60 days - - 6.2 6.2
21.8 5.8 6.2 33.8
8. Available for sale assets
As at 30 September 2024, the Group had no value attributable to available for
sale assets.
In the period ended 30 September 2023, the Group held a distinct portfolio of
loans, those originated under the RewardRate brand, which were classified as
held for sale. Valuation in the balance sheet was at fair value with
accompanying references incorrectly referring to IFRS 5. Given the asset was
measured correctly at fair value as required by IFRS 9, there is no
restatement necessary. The sale of this portfolio of loans was completed in
January 2024.
In the period ended 31 March 2024, the Group held the remaining active
portfolio of loans under its original Amigo brand as available for sale.
This sale was complete in April 2024, in line with values used in its
accounting estimation.
Remaining loans and previously charged off debt are fair valued at nil at the
balance sheet date and recognised only on sale. Amigo has not historically
placed any value on previously charged off loans, and proceeds of debt sales
have been recognised on receipt as a reversal of impairment. This has been
considered appropriate given the uncertainty over completion of debt sales and
the limited number of suitable purchasers. A debt sale was completed on 31
October 2024. The offer was not made until 25 October 2024. To be
consistent with our policy, the pool of previously charged off loans has been
fair valued at nil at the period end.
9. Financial instruments
The below tables show the carrying amounts and fair values of financial assets
and financial liabilities, including the levels in the fair value hierarchy.
The tables analyse financial instruments into a fair value hierarchy based on
the valuation technique used to determine fair value:
a) Level 1: quoted prices (unadjusted) in active markets for identical
assets or liabilities.
b) Level 2: inputs other than quoted prices included within Level 1 that
are observable for the asset or liability, either directly (i.e. as prices) or
indirectly (i.e. derived from prices).
c) Level 3: inputs for the asset or liability that are not based on
observable market data (unobservable inputs).
30 Sep 24 30 Sep 23 31 Mar 24
Fair value Carrying amount Fair Carrying amount Fair Carrying amount Fair
hierarchy £m value £m value £m value
£m £m £m
Financial assets not measured at fair value(1)
Amounts receivable from customers(2) Level 3 - - 24.5 9.4 - -
Other receivables Level 3 0.3 0.3 0.8 0.8 0.5 0.5
Cash and cash equivalents (restricted) Level 1 23.5 23.5 74.8 74.8 84.5 84.5
Cash and cash equivalents Level 1 22.5 22.5 121.6 121.6 90.4 90.4
46.3 46.3 221.7 206.6 175.4 175.4
Financial assets measured at fair value
Available for sale assets Level 1 - - 1.1 1.1 2.7 2.7
1.1 1.1 2.7 2.7
Financial liabilities held at amortised cost
Other liabilities Level 3 (2.9) (2.9) (4.6) (4.6) (3.1) (3.1)
(2.9) (2.9) (4.6) (4.6) (3.1) (3.1)
1. The Group has disclosed the fair values of financial instruments
such as short-term trade receivables and payables at their carrying value
because it considers this a reasonable approximation of fair value.
2. The unobservable inputs in the fair value calculation of amounts
receivable from customers are balance adjustments arising from upheld Scheme
claims, expected credit losses, forecast cash flows and discount rate. As both
balance adjustments and lifetime expected credit losses are embedded in the
calculation, this resulted in a fair value lower than the carrying amount as
at 30 September 2023.
Financial instruments held at amortised cost
In the period to 30 September 2023, the fair value of amounts receivable from
customers was estimated using a net present value calculation using discount
rates derived from the blended effective interest rate of the instruments.
All financial instruments are held at amortised cost. There are no derivative
assets in the current or prior period.
The Group's activities expose it to a variety of financial risks, which can be
categorised under credit risk and market risk. The objective of the Group's
risk management framework is to identify and assess the risks facing the Group
and to minimise the potential adverse effects of these risks on the Group's
performance. Financial risk management is overseen by the Group Risk Committee
alongside other principal risks: operational, regulatory, strategic and
conduct risks.
30 Sep 24 30 Sep 23 31 Mar 24
Unaudited Unaudited Audited
£m £m £m
Maturity analysis of financial liabilities
Analysed as:
- due within one year
Other liabilities (2.9) (4.6) (3.1)
10. Other receivables
30 Sep 24 30 Sep 23 31 Mar 24
Unaudited Unaudited Audited
£m £m £m
Current
Other receivables 0.1 0.1 0.1
Prepayments and accrued income 0.2 0.7 0.4
0.3 0.8 0.5
11. Trade and other payables
30 Sep 24 30 Sep 23 31 Mar 24
Unaudited Unaudited Audited
£m £m £m
Current
Trade payables - 1.5 0.2
Taxation and social security 0.1 0.2 0.2
Other creditors(1) 2.1 1.3 2.0
Accruals and deferred income 0.7 1.6 0.7
2.9 4.6 3.1
( )
(1) Other creditors include an onerous contract provision of £2.1m to
decrease net assets of the legacy business to £ nil as at 30 September 2024.
In the period to 30 September 2023, other creditors includes an onerous
contract provision of £1.1m in relation to the RewardRate (RR) product. The
sale of the RR loan book was completed in January 2024. The product had a
number of associated supplier contracts that could not either be terminated,
or a termination fee had been negotiated to end the contract early. These
unavoidable costs were expected to be greater than the economic benefits of
collecting or selling the potential RR loan book sale.
12. Provisions
Provisions are recognised for present obligations arising as the consequence
of past events where it is more likely than not that
a transfer of economic benefit will be necessary to settle the obligation,
which can be reliably estimated.
30 Sep 24 30 Sep 23 31 Mar 2024
Complaints Restructuring Total Complaints Restructuring Total Complaints Restructuring Total
£m £m £m £m £m £m £m £m £m
Opening provision 169.4 5.7 175.1 195.9 4.5 200.4 195.9 4.5 200.4
Provision movement in period (0.7) - (0.7) 16.8 0.9 17.7 12.1 3.1 15.2
Net utilisation of the provision (127.9) (3.3) (131.2) (4.7) (0.8) (5.5) (38.6) (1.9) (40.5)
Closing provision 40.8 2.4 43.2 208.0 4.6 212.6 169.4 5.7 175.1
Current 40.8 2.4 43.2 208.0 4.6 212.6 169.4 5.7 175.1
40.8 2.4 43.2 208.0 4.6 212.6 169.4 5.7 175.1
Customer complaints redress
As at 30 September 2024, the Group has recognised a complaints provision
totalling £40.8m in respect of customer complaints redress and associated
costs. Utilisation in the period totalled £127.9m. The total Scheme liability
has decreased by £167.2m compared to prior year. The closing provision is
comprised of an estimate of cash liability, and an estimate of refunds to
upheld Scheme claimants for collections made since the Scheme effective date,
which will be redressed in full and attract compensatory interest.
The Group continues to monitor its policies and processes to ensure that it
responds appropriately to customer complaints.
The Group will continue to assess both the underlying assumptions in the
calculation and the adequacy of this provision periodically to adjust the
provisions where appropriate.
The Group anticipates the redress programme will be complete, or substantially
complete, within six months of the period end. Uncertainties exist around the
timing of completion of the redress programme due to operational complexity
and the potential for customer appeals.
Restructuring provision
As at 30 September 2024, the Group recognised a restructuring provision
totalling £2.4m (H1 FY2024: £4.6m) in respect of the expected cost of staff
redundancies and liquidator costs due to wind down of the business.
13. Share capital
On 4 July 2018 the Company's shares were admitted to trading on the London
Stock Exchange. Immediately prior to admission the shareholder loan notes were
converted to equity, increasing the share capital of the business to 475
million ordinary shares and increasing net assets by £207.2m. On 28 March
2024 Amigo announced that Peterhouse Capital Limited arranged for the placing
of 95,019,200 new ordinary shares of 0.25p each fully paid, ranking pari passu
in all respects with the existing issued ordinary shares. On 5 April 2004,
23,766,400 of these shares ("First Placing Shares") were admitted for listing
on the premium segment of the Official List and to trading on the main market
for listed securities of the London Stock Exchange. The remaining 71,252,800
shares ("Second Placing Shares") were admitted for listing on 9 May 2024.
Ordinary Number Total Number
At 30 September 2023 475,333,760 475,333,760
At 31 March 2024 475,333,760 475,333,760
Shares issued 95,019,200 95,019,200
At 30 September 2024 570,352,960 570,352,960
Ordinary shares
The holders of ordinary shares are entitled to receive dividends as declared
from time to time and are entitled to one vote per share at general meetings
of the Company. Each ordinary share in the capital of the Company ranks
equally in all respects and no shareholder holds shares carrying special
rights relating to the control of the Company. The nominal value of shares in
issue is shown in share capital, with any additional consideration for those
shares shown in share premium.
Deferred shares
At the time of the IPO and subdivision the 41,000 ordinary B shares were split
into 16,400,000 ordinary shares of 0.25p and 41,000 deferred shares of
£0.24.
The deferred shares do not carry any rights to receive any profits of the
Company or any rights to vote at a general meeting. Prior to the subdivision
the ordinary B shares had 1.24 votes per share; all other shares had one vote
per share. The Group plans to cancel these deferred shares in due course.
Dividends
Dividends are recognised through equity, on the earlier of their approval by
the Company's shareholders or their payment.
The Board decided that it would not propose a final dividend payment for the
year to 31 March 2024 or an interim dividend for the period to 30 September
2024. Total cost of dividends paid in the period is £nil (2023: £nil).
14. Immediate and ultimate parent undertaking
The immediate and ultimate parent undertaking is Amigo Holdings PLC, a company
incorporated in England and Wales. The consolidated financial statements of
the Group as at and for the year ended 31 March 2024 are available on the
website amigoplc.com and, upon request, from the Company's registered office
at 71-75 Shelton Street, Covent Garden, London, United Kingdom, WC2H 9JQ.
15. Investment in subsidiaries
The following are subsidiary undertakings of the Company at 30 September 2024
and includes undertakings registered or incorporated up to the date of the
Directors' Report as indicated. Unless otherwise indicated all Group owned
shares are ordinary. All entities are subsidiaries on the basis of 100%
ownership and shareholding.
As part of the ongoing orderly wind down of activities the Group commenced
proceedings to dissolve dormant companies in the structure. The formal
dissolution of six previously dormant entities was confirmed on 30 October
2023. Amigo Loans Luxembourg S.A. was also dissolved on 1 December 2023.
Name Country of incorporation Class of Ownership 30 Sep 2024 Ownership 30 Sep 2023 Principal activity
Shares held
Direct holding
Amigo Loans Group Ltd1 United Kingdom Ordinary 100% 100% Holding company
ALL Scheme Ltd1 United Kingdom Ordinary 100% 100% Special purpose vehicle
Indirect holdings
Amigo Loans Holdings Ltd1 United Kingdom Ordinary 100% 100% Holding company
Amigo Loans Ltd1 United Kingdom Ordinary 100% 100% Trading company
Amigo Management Services Ltd1 United Kingdom Ordinary 100% 100% Trading company
Amigo Luxembourg S.A. Luxembourg Ordinary - 100% Financing company
Amigo Car Loans Limited United Kingdom Ordinary - 100% Dormant
Vanir Financial Limited United Kingdom Ordinary - 100% Dormant
Vanir Business Financial Limited United Kingdom Ordinary - 100% Dormant
Amigo Store Limited United Kingdom Ordinary - 100% Dormant
Amigo Group Limited United Kingdom Ordinary - 100% Dormant
Amigo Finance Limited United Kingdom Ordinary - 100% Dormant
1 Registered at 71-75 Shelton Street, Covent
Garden, London, United Kingdom, WC2H 9JQ.
17. Related party transactions
The Group had no related party transactions during the six-month period to 30
September 2024 that would materially affect the performance of the Group.
Details of the transactions for the year ended 31 March 2024 can be found in
note 23 of the Amigo Holdings PLC financial statements.
Company statement of financial position
as at 30 September 2024
30 Sep 24 31 Mar 24
Unaudited Audited
Notes £m £m
Current assets
Cash at bank and in hand 0.1 -
Total assets 0.1 -
Current liabilities
Other payables 2a - (71.1)
Total liabilities - (71.1)
Net assets/(liabilities) 0.1 (71.1)
Equity
Share capital 3a 1.4 1.2
Share premium 207.9 207.9
Merger reserve 4.7 4.7
Retained earnings (including profit of £71.0m (year ended 31 Mar 2024: loss (213.9) (284.9)
of £1.4m))
Shareholder equity 0.1 (71.1)
The parent company financial statements were approved and authorised for issue
by the Board and were signed on its behalf by:
Kerry Penfold
Director
22 November 2024
Company no. 10024479
The accompanying notes form part of these financial statements.
Company statement of changes in equity
for the six months ended 30 September 2024
Share Share Merger Retained Total
capital premium reserve 1 earnings equity
£m £m £m £m £m
At 31 March 2023 1.2 207.9 4.7 (283.5) (69.7)
Total comprehensive (loss) - - - (1.4) (1.4)
At 31 March 2024 1.2 207.9 4.7 (284.9) (71.1)
Shares issued 0.2 - - - 0.2
Total comprehensive profit - - - 71.0 71.0
At 30 September 2024 1.4 207.9 4.7 (213.9) 0.1
1 The merger reserve was created as a result of a Group reorganisation to
create an appropriate holding company structure. The restructure was within a
wholly owned group and so merger accounting applied under Group reconstruction
relief.
The accompanying notes form part of these financial statements.
Company statement of cash flows
for the six months ended 30 September 2024
6 months to
Year to
30 Sep 24 31 Mar 24
Unaudited Audited
£m £m
Profit/(loss) for the period 71.0 (1.4)
Adjustments for:
Impairment of investment - 0.9
Intercompany impairment movement (71.0) -
Income tax charge - 0.2
Operating cash flows before movements in working capital - (0.3)
(Decrease) in payables (0.1) (0.2)
Net cash (used in) operating activities (0.1) (0.5)
Financing activities
Share capital issued 0.2 -
Proceeds from intercompany funding - 0.5
Net cash from financing activities 0.2 0.5
Net movement in cash and cash equivalents 0.1 -
Cash and cash equivalents at beginning of period - -
Cash and cash equivalents at end of period 0.1 -
The accompanying notes form part of these financial statements.
Notes to the financial statements - Company
for the six months ended 30 September 2024
1a. Accounting policies
Accounting policies
The interim financial statements have been prepared applying the accounting
policies and presentation that were applied in the
preparation of the Company's published consolidated annual report for the year
ended 31 March 2024.
2a. Other payables
6 months to
Year to
30 Sep 24 31 Mar 24
Unaudited Audited
£m £m
Amounts owed to Group undertakings - 71.0
Accruals and deferred income - 0.1
- 71.1
Amounts owed to Group undertakings are considered non-recoverable. Following
regulatory clearance these balances were waived by the creditor subsidiaries
in the six months to 30 September 2024 in return for agreement by Amigo
Management Services Limited ("AMSL") to assign any remaining cash balances to
its sister company ALL prior to liquidation.
3a. Share capital
For details of share capital, see note 13 to the condensed consolidated
financial statements. £nil dividends were paid in the period (FY 2024:
£nil).
4a. Related party transactions
The Company receives charges from and makes charges to its 100% owned
subsidiaries. Amounts owed to Group undertakings are considered
non-recoverable. Following regulatory clearance these balances were waived by
the creditor subsidiaries in the six months to 30 September 2024 in return for
agreement by Amigo Management Services Limited ("AMSL") to assign any
remaining cash balances to its sister company ALL prior to liquidation for the
benefit of Scheme creditors.
Carrying
Charged Charged from Balance waived Gross Value
to balance
£m £m £m £m £m
Period to 30 September 2024
Amigo Loans Ltd - - 66.3 - -
Amigo Management Services Ltd - - 4.7 - -
Year to 31 March 2024
Amigo Loans Ltd (0.3) - (66.3) (66.3)
Amigo Management Services Ltd - (0.3) - (4.7) (4.7)
Appendix: alternative performance measures
Given the implementation of the Fallback Scheme and the winding down of the
Group's business, the Board believes that disclosure of alternative
performance measures ("APMs") is no longer relevant, and therefore they are no
longer disclosed.
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