REG - Amigo Holdings PLC - Interim Annual Financial Results
02/05/2025 07:00
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RNS Number : 1466H Amigo Holdings PLC 02 May 2025
02 May 2025
Amigo Holdings PLC
Interim Financial Results for the twelve months ended 31 March 2025
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 twelve
months ending 31 March 2025.
Kerry Penfold, CEO/ CFO, commented:
"The wind down of our legacy businesses is almost complete, having delivered
£194m in cash redress and refunds to Scheme creditors. Mistakes of the past
have cost Amigo and its shareholders dearly, but this chapter is now drawing
to a close. We continue our search for a reverse takeover partner to enable
the Company to continue in the longer term and bring some value to
shareholders that would otherwise not be possible"
Headlines:
· Wind-down process: Amigo is nearing completion of the orderly
wind down of its legacy lending business under the previously declared
Fallback Scheme. We remain grateful to our staff for their continued
commitment under very difficult circumstances.
· Change of Accounting Reference Date: To preserve cash for
creditors, Amigo announced the extension of its reporting period by six months
to 30 September, and presents these interim results in line with its
obligations under the UK Listing Rules.
· Reverse Takeover: The Board continues to search for a suitable
reverse takeover ("RTO") target to enable the Company to continue as a viable
business in the long term.
Financial Headlines
· Cash reduced by £136.1m in the twelve months to 31 March 2025,
primarily due to redress payments under the Group's Scheme of Arrangement.
· Overheads were down 67.4% as the Group continued its programme of
redundancies and cost saving measures as part of orderly wind down of its
legacy business.
Contact Information:
· Nick Beal, Chief Restructuring Officer, Amigo
· Sponsor - Beaumont
Cornish
0207 628 3396
About Amigo:
Amigo is a public limited company registered in England and Wales with
registered number 10024479. The Amigo Shares are listed on the Official List
of the London Stock Exchange. On 23 March 2023 Amigo announced that it has
ceased offering new loans, with immediate effect, and would start the orderly
solvent wind-down of the business. Amigo provided guarantor loans in the UK
from 2005 to 2020 and unsecured loans under the RewardRate brand from October
2022, offering access to mid‐cost credit to those who are unable to borrow
from traditional lenders due to their credit histories. Amigo Loans Ltd is
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
It has been more than two years since Amigo entered the Fallback Scheme,
necessitating the cessation of new business through Amigo Loans. Over the past
two years we have progressed the orderly wind down of legacy businesses for
the benefit of Scheme creditors. This chapter of Amigo's history is now
drawing to a close. The Directors continue their search for a viable
alternative future for Amigo PLC.
Business Performance
We have continued to manage the business prudently through the wind down
period, balancing the need to preserve cash for Scheme creditors with the
governance requirements expected of a regulated business. Decisions have not
always been easy or popular, but I am pleased that as a result of this prudent
management we have repaid to Scheme creditors £108m and delivered a combined
Scheme payment of 18.51p, in excess of the 17p forecast when the Fallback
Solution was adopted. When combined with the £86m paid in direct refunds and
£132m of loan balances written off, the scale of redress paid to the 210,000
Scheme claimants is apparent.
None of this would have been possible without the commitment of our brilliant
team members, who have worked for the past two years in very difficult
circumstances.
Scheme of Arrangement
In March 2025, Amigo Loans Ltd (ALL) made its final payment of surplus cash to
Scheme Co, enabling the Scheme Supervisor to announce an additional Scheme
payment of 6.01p/£. In total across both payments Scheme creditors will
have received 18.51p/£.
Under the terms of the Scheme, ALL is obliged to place itself in liquidation
within two months of this final payment, and accordingly the closure of the
Group's sole historical cash generating subsidiary is expected in the coming
weeks.
Operations and Cost Reduction
Throughout the period we continued our commitment to maximise returns for
Scheme creditors, delivering value from the remaining loan book through
collections or sale, and prudently managing costs.
As noted in previous updates, the final debt sale completed in October 2024.
Remaining loans that could not be cost effectively collected or sold were
written off in January 2025.
Our customer service function was fully outsourced in July 2024. Our small
remaining in-house team is expected to complete winding up the business in the
coming weeks.
Possible Transactions
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, and to the new investors that supported
the capital raise which made this possible.
Over the last twelve months, and before, we have spoken to businesses in a
range of sectors with the intent 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 twelve months. We are now approaching the end of
this runway and, as time runs increasingly short, there is an increased
likelihood that the Directors will be faced with a difficult decision. Based
on the budget and further measures to reduce costs, current resources will
only be sufficient until early July 2025, prior to which the Company will need
to raise additional funds.
If Amigo is unable to secure an alternative future by way of a transaction or
further investment it is likely that the business will enter a form of
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 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 2024 without impacting funds available for Scheme creditors. Jim
brings an impressive track record of creating valuable businesses built over
nearly three decades of experience.
In March 2025, we took the decision to extend cost saving measures to the
annual report process. Accordingly, we extended the accounting reference date
from 31 March to 30 September, deferring the costs associated with production
of the annual report.
As a result of the extended accounting period, Amigo is obliged under the
listing rules to produce these interim accounts. The Board has taken the
decision, permitted within the UK 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. A small capital raise (in two tranches in April
and May of 2024) provided working capital for PLC to fund costs for a
prolonged period whilst it sought an alternative transaction. Remaining free
funds not committed to Scheme creditors are less than £40,000 at 31 March
2025.
Income
Revenue of £0.1m (FY2024: £3.5m) in the period reflects interest received on
live loans. The loans have now been sold, or where not commercially viable for
sale, written off.
£2.5m of interest has been received in the period (FY2024: £6.5m) on funds
held on deposit for the benefit of Scheme Creditors.
Impairment and Provisions
Impairment credit of £2.3m (FY2024: £7.2m) materially relates to proceeds
from loan and debt sales. These sales have now concluded.
Costs
Administrative and other operating costs decreased by £12.0m (67.4%) to
£5.8m compared to the twelve months to March 2024. 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 £3.0m (FY
2024: £10.5m), licence fees of £0.5m (FY 2024: £1.4m), insurance costs of
£0.5m (FY 2024: £1.7m) and legal, professional and consultancy fees of
£0.6m (FY 2024: (£0.1m)).
A release of complaints provision of £0.7m was made in the period (FY2024:
charge of £12.1m). This arose chiefly from previous over estimation of refund
balances and the amount required to settle balance adjustments due on
previously sold debt.
Cash and Cash Equivalents
Cash and cash equivalents held at 31 March 2025 amounted to £38.8m (FY2024:
£174.9m). 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.
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 monies being paid to ALL Scheme Ltd ("SchemeCo"). No
residual value would be attributed to the ordinary shares of the Company.
Throughout the period to 31 March 2025 the Fallback Solution has progressed.
Amigo's back book of loans has been run off or sold, an interim dividend has
been paid to all Scheme creditors, and almost 90% of the Group's staff have
exited the business since implementation of the Fallback Solution. On 27 March
2025, the Scheme Supervisors announced an additional, and intended to be
final, dividend payable to Scheme creditors. It is therefore expected that
ALL will enter liquidation by the end of May, in line with obligations under
the Scheme.
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 31 March 2025 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 31 March 2025.
The Board has prepared a set of financial projections for the short period to
the expected liquidation of the Group companies. Sufficient liquidity has
been retained to handle moderate stresses in the form of increased overhead
spend. Given the obligation to transfer all value from the legacy business to
Scheme creditors, and the short time frame under consideration, it is not
possible for the Group to retain liquidity to deal with a wide range of
possible stress scenarios. Key risks that would prevent an orderly wind down
of the Group from happening are significantly increased overhead spend arising
from unplanned delays or third party action and unforeseen cash losses (e.g.
from theft or fraud).
Principal Risks and Uncertainties
As the wind down of the legacy businesses has progressed the number of risks
and uncertainties faced by the Group has naturally diminished. However.
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 has concluded debt sales of the historic loan book, this credit risk has
fallen away. Amigo remains exposed to credit risk of the financial
institutions in which it deposits liquidity, which it mitigates by placing all
funds with A credit institutions on immediately available terms.
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 historic target market poses higher than average conduct risks. The
organisation has a low tolerance for action or inaction that leads to customer
detriment. Amigo is aware that sales of unpaid debt poses a Conduct Risk. In
making debt sales, Amigo considered the impact on the wider Scheme population
of the additional funds that would be generated from sale. We selected debt
purchasers committed to high standards of integrity and provided adequate
notice to customers whose debt was sold. Through the Scheme, Amigo has been
exposed to Conduct Risk, notably in relation to a number of individuals who
did not provide payment details and we have been unable to settle redress
due. 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 twelve months, operational resilience has been
stable. In July 2024, Amigo was impacted by the widespread Crowdstrike-related
IT outage; services were restored within five 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. In this short
period between the payment of final amounts to Scheme creditors and
liquidation of the legacy businesses, Amigo is exposed to increased financial
risk due to low financial headroom, especially at the PLC stand alone level.
This is mitigated by the few remaining activities and short time period before
liquidation is expected to take place.
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 twelve
months of the financial period 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 financial period; and
b) DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being
related party transactions that have taken place in the first twelve months of
the current financial period 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
02 May 2025
Condensed consolidated statement of comprehensive income
for the twelve months to 31 March 2025
12 months ended
31 Mar 25 Year to
31 Mar 24
Unaudited Audited
Notes £m £m
Revenue 3 0.1 3.5
Interest receivable 2.5 6.5
Impairment of amounts receivable from customers(1) 2.3 7.2
Administrative and other operating expenses (5.8) (17.8)
Complaints expense 11 0.7 (12.1)
Total operating expenses (5.1) (29.9)
Loss before tax (0.2) (12.7)
Tax credit on loss 5 - 0.1
Loss and total comprehensive loss attributable to equity shareholders of the (0.2)
Group2
(12.6)
The loss is derived from continuing activities.
Loss per share
Basic loss per share (pence) 6 (0.0) (2.7)
Diluted loss per share (pence) 6 (0.0) (2.7)
The accompanying notes form part of these financial statements.
(1 ) In the twelve months ended 31 March 2025 the £2.3m was
materially due to gain on available for sale assets.
(2 )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 31 March 2025
31 Mar 25 31 Mar 24
Unaudited Audited
Notes £m £m
Current assets
Other receivables 9 0.4 0.5
Current tax assets - 0.1
Cash and cash equivalents (restricted)(1) 34.1 84.5
Cash and cash equivalents 4.7 90.4
39.2 175.5
Available for sale assets 7 - 2.7
Total assets 39.2 178.2
Current liabilities
Trade and other payables 10 (2.7) (3.1)
Complaints provision 11 (35.0) (169.4)
Restructuring provision 11 (1.5) (5.7)
Total liabilities (39.2) (178.2)
Net assets 0.0 0.0
Equity
Share capital 12 1.4 1.2
Share premium 207.9 207.9
Merger reserve (295.2) (295.2)
Retained earnings 85.9 86.1
Shareholder equity 0.0 0.0
The accompanying notes form part of these financial statements.
(1) Cash and cash equivalents (restricted) of £34.1m (2024: £84.5m)
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
02 May 2025
Company no. 10024479
Condensed consolidated statement of changes in equity
for the twelve months to 31 March 2025
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 - - - (12.6) (12.6)
At 31 March 2024 1.2 207.9 (295.2) 86.1 -
Shares issued 0.2 - - - 0.2
Total comprehensive loss - - - (0.2) (0.2)
At 31 March 2025 1.4 207.9 (295.2) 85.9 0.0
(1) The merger reserve was created as a result of a Group reorganisation in
2017 to create an appropriate holding company structure. The restructuring 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 twelve months to 31 March 2025
12 months to Year to
31 Mar 25 31 Mar 24
Unaudited Audited
£m £m
Loss for the period (0.2) (12.6)
Adjustments for:
Impairment expense - (7.2)
Complaints provision (1.3) 13.9
Restructuring provision 0.2 3.1
Tax charge - (0.1)
Interest receivable (2.5) (6.5)
Interest recognised on loan book - (4.8)
Loss on sale of Fixed Assets - 0.1
Depreciation of property, plant and equipment - 0.3
Operating cash flows before movements in working capital (3.8) (13.8)
Decrease in receivables 0.1 1.0
Decrease in payables (0.5) (2.8)
Complaints cash expense (133.0) (39.6)
Restructuring cash expense (4.4) (1.9)
Tax (paid)/ refunds (0.1) 0.8
Interest received 2.5 6.5
Net cash used in operating activities before loans issued and collections on (139.2) (49.8)
loans
Collections 2.0 48.1
Other loan book movements 0.9 6.8
Decrease in deferred brokers' costs - 0.3
Net cash (used in)/from operating activities (136.3) 5.4
Financing activities
Share capital issued 0.2 -
Lease principal payments - (0.1)
Net cash from/(used in) financing activities 0.2 (0.1)
Net (decrease)/increase in cash and cash equivalents (136.1) 5.3
Cash and cash equivalents at beginning of period 174.9 169.6
Cash and cash equivalents at end of period(1) 38.8 174.9
The accompanying notes form part of these financial statements.
(1) Total cash is inclusive of cash and cash equivalents (restricted) of
£34.1m (2024: £84.5m). Cash and cash equivalents (restricted) materially
relate to cash held for the benefit of creditors in relation to payments
arising out of the Scheme of Arrangement.
Notes to the condensed consolidated financial statements
for the twelve months to 31 March 2025
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 under 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 twelve months to 31 March 2025. The Group
continues to collect its assets and settle liabilities in line with
obligations under the Scheme.
Amigo Holdings PLC has changed its accounting reference date from 31 March to
30 September. The Company's next audited financial statements are therefore
due to be prepared for an eighteen-month period ending 30 September 2025. In
accordance with the UK Listing Rules, the Company is publishing unaudited
interim accounts for the twelve months ended 31 March 2025. The Directors have
implemented this change to preserve cash. As previously announced, the Company
has a very limited runway before becoming insolvent. Based on its budget,
current resources will run out in early July 2025. The change of accounting
reference date defers Amigo incurring a liability to pay costs related to the
production of audited financial statements.
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 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 twelve months ended 31
March 2025 were approved by the Board of Directors on 02 May 2025.
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 twelve months ended 31
March 2025 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 included
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 monies being paid to ALL Scheme Ltd ("SchemeCo"). No
residual value would be attributed to the ordinary shares of the Company.
Throughout the period to 31 March 2025 the Fallback Solution has progressed.
Amigo's back book of loans has been run off or sold, an interim dividend has
been paid to all Scheme creditors, and almost 90% of the Group's staff have
exited the business since implementation of the Fallback Solution. On 27 March
2025, the Scheme Supervisors announced an additional, and intended to be
final, dividend payable to Scheme creditors. It is therefore expected that
ALL will enter liquidation by the end of May, in line with obligations under
the Scheme.
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 31 March 2025 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 31 March 2025.
The Board has prepared a set of financial projections for the short period to
the expected liquidation of the Group companies. Sufficient liquidity has
been retained to handle moderate stresses in the form of increased overhead
spend. Given the obligation to transfer all value from the legacy business to
Scheme creditors, and the short time frame under consideration, it is not
possible for the Group to retain liquidity to deal with a wide range of
possible stress scenarios. Key risks that would prevent an orderly wind down
of the Group from happening are significantly increased overhead spend arising
from unplanned delays or third party action and unforeseen cash losses (e.g.
from theft or fraud).
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.
· 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:
· Restructuring provision:
· Severance costs of staff exits which are contingent on the timing
of exit and therefore contingent on future resource required.
In prior periods, the complaints provision has entailed a high degree of estimation. Following completion of all claim reviews, and announcement of the Additional Scheme Payment in the period, the value of all Scheme Claims is fixed and no longer subject to estimation uncertainty.
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 in
prior periods.
The Group has one operating segment based on the geographical location of its
operations, being the UK.
Period to Year to
31 Mar 25 31 Mar 24
Unaudited Audited
£m £m
Interest under effective interest rate method 0.1 2.7
Other income - 0.9
Modification of financial assets (note 4) - (0.1)
0.1 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.
Period to Year to
31 Mar 25 31 Mar 24
Unaudited Audited
£m £m
Modification (loss) recognised in revenue - (0.1)
Modification (loss) recognised in impairment - (0.1)
Total modification (loss) - (0.2)
5. Taxation
The applicable corporation tax rate for the period to 31 March 2025 was 25.0%
(FY2024: 25.0%) and the effective tax rate is 0.0% (FY2024: negative 0.8%).
6. 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.
31 Mar 25 31 Mar 24
Unaudited Audited
Pence Pence
Basic loss per share (0.0) (2.7)
Diluted loss per share (0.0) (2.7)
Basic adjusted (loss)/profit per share (basic and diluted)1 (0.1) 0.8
(1) Adjusted basic (loss)/profit per share and earnings for adjusted basic
earnings per share are non-GAAP measures.
Consistent with prior years, the Directors publish an adjusted (loss)/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.
31 Mar 25 31 Mar 24
Unaudited Audited
£m £m
Loss for basic EPS (0.2) (12.6)
Complaints provision movement (0.7) 12.1
Restructuring expense 0.2 3.1
Onerous contract expense - 1.3
(Loss)/profit for basic adjusted EPS1 (0.7) 3.9
Basic weighted average number of shares (m) 562.7 475.3
Dilutive potential ordinary shares (m) - -
Diluted weighted average number of shares (m) 562.7 475.3
(1) Adjusted basic earnings per share and earnings for adjusted basic earnings
per share are non-GAAP measures.
7. Available for sale assets
As at 31 March 2025, the Group had no value attributable to available for sale
assets. All historic loans have been either sold for the benefit of Scheme
creditors, or where it was not commercially viable to do so, written off.
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. In October 2024 a further sale of previously charged
off debt was completed. This debt was ascribed nil value at 31 March 2024, in
line with our policy in relation to charged off debt.
8. 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).
31 Mar 25 31 Mar 24
Fair value Carrying amount Fair Carrying amount Fair
hierarchy £m value £m value
£m £m
Financial assets not measured at fair value(1)
Other receivables Level 3 0.4 0.4 0.5 0.5
Cash and cash equivalents (restricted) Level 1 34.1 34.1 84.5 84.5
Cash and cash equivalents Level 1 4.7 4.7 90.4 90.4
39.2 39.2 175.4 175.4
Financial assets measured at fair value
Available for sale assets Level 1 - - 2.7 2.7
2.7 2.7
Financial liabilities held at amortised cost
Other liabilities Level 3 (2.7) (2.7) (3.1) (3.1)
(2.7) (2.7) (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.
Financial instruments held at amortised cost
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.
31 Mar 25 31 Mar 24
Unaudited Audited
£m £m
Maturity analysis of financial liabilities
Analysed as:
- due within one year
Other liabilities (2.7) (3.1)
9. Other receivables
31 Mar 25 31 Mar 24
Unaudited Audited
£m £m
Current
Other receivables - 0.1
Prepayments and accrued income 0.4 0.4
0.4 0.5
10. Trade and other payables
31 Mar 25 31 Mar 24
Unaudited Audited
£m £m
Current
Trade payables 0.1 0.2
Taxation and social security 0.4 0.2
Other creditors(1) 1.9 2.0
Accruals and deferred income 0.3 0.7
2.7 3.1
( )
(1) Other creditors include an onerous contract provision of £1.9m (2024:
£1.9m) to decrease net assets of the legacy business to £ nil as at 31 March
2025.
11. 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.
31 Mar 25 31 Mar 2024
Complaints Restructuring Total Complaints Restructuring Total
£m £m £m £m £m £m
Opening provision 169.4 5.7 175.1 195.9 4.5 200.4
Provision movement in period (0.7) 0.2 (0.5) 12.1 3.1 15.2
Net utilisation of the provision (133.7) (4.4) (138.1) (38.6) (1.9) (40.5)
Closing provision 35.0 1.5 36.5 169.4 5.7 175.1
Current 35.0 1.5 36.5 169.4 5.7 175.1
35.0 1.5 36.5 169.4 5.7 175.1
Customer complaints redress
As at 31 March 2025 the Group has recognised a complaints provision totalling
£35.0m in respect of customer complaints redress and associated costs.
Utilisation in the period totalled £133.7m. The total Scheme liability has
decreased by £134.4m compared to prior year. The closing provision is
comprised of cash liability for the Additional Scheme Payment, certain costs
necessary to complete the Scheme, and unpaid refunds to upheld Scheme
claimants for collections made since the Scheme effective date, which will be
redressed in full and attract compensatory interest. Unpaid refunds, where the
claimant has not provided valid payment details, remain a liability of ALL and
the Directors intend to pay any unpaid refunds into Court.
The Group continues to monitor its policies and processes to ensure that it
responds appropriately to customer complaints.
The Group will continue to assess 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 two months of the period end.
Restructuring provision
As at 31 March 2025, the Group recognised a restructuring provision totalling
£1.5m (2024: £5.7m) in respect of the expected cost of staff redundancies
and liquidator costs due to wind down of the business.
12. 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 31 March 2025 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 31 March 2025.
Total cost of dividends paid in the period is £nil (2024: £nil).
13. 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.
14. Investment in subsidiaries
The following are subsidiary undertakings of the Company at 31 March 2025 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.
Name Country of incorporation Class of Ownership 31 Mar 2025 Ownership 31 Mar 2024 Principal activity
Shares held
Direct holding
Amigo Loans Group Ltd1,2 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
(1) Registered at 71-75 Shelton Street, Covent Garden, London, United Kingdom,
WC2H 9JQ.
(2) In liquidation.
15. Related party transactions
The Group had no related party transactions during the twelve-month period to
31 March 2025 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 31 March 2025
31 Mar 25 31 Mar 24
Unaudited Audited
Notes £m £m
Current liabilities
Other payables 2a - (71.1)
Total liabilities - (71.1)
Net assets/(liabilities) - (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 loss of £70.9m (year ended 31 Mar 2024: loss of (214.0) (284.9)
£1.4m))
Shareholder equity - (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
02 May 2025
Company no. 10024479
The accompanying notes form part of these financial statements.
Company statement of changes in equity
for the twelve months ended 31 March 2025
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 - - - 70.9 70.9
At 31 March 2025 1.4 207.9 4.7 (214.0) -
(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 twelve months ended 31 March 2025
12 months to
Year to
31 Mar 25 31 Mar 24
Unaudited Audited
£m £m
Profit/(loss) for the period 70.9 (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 (0.1) (0.3)
(Decrease) in payables (0.1) (0.2)
Net cash (used in) operating activities (0.2) (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 - -
Cash and cash equivalents at beginning of period - -
Cash and cash equivalents at end of period - -
The accompanying notes form part of these financial statements.
Notes to the financial statements - Company
for the twelve months ended 31 March 2025
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
12 months to
Year to
31 Mar 25 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 twelve months to 31 March 2025 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 12 to the condensed consolidated
financial statements. £nil dividends were paid in the period (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 twelve months to 31 March 2025 in return for
agreement by 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 31 March 2025
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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