Amigo Holdings Faces Decline in Shares as Losses Mount

London, UK – Amigo Holdings, the guarantor-loan provider, experienced a sharp decline in its shares, plunging 31% on Thursday due to a pretax loss incurred in fiscal 2023. The company, which is currently in the process of winding down its operations, reported a pretax loss of £34.7 million ($44.9 million) for the year ended March 31, compared to the previous year’s pretax profit of £167.9 million.

Decrease in Revenue and Loan Book

Amigo Holdings also witnessed a significant decline in revenue, with figures dropping from £89.5 million to £19.3 million. Additionally, the net loan book decreased by 67% to £45.4 million, primarily attributed to the legacy loan book being phased out and limited new lending during the given period. Lending activities ceased entirely after the wind-down announcement was made in March.

Reduction in Customer Base

The company saw a substantial decrease in its customer base as well, with customer numbers dropping by 60% to 29,000 throughout the year.

Focusing on Orderly Wind Down

While addressing the situation, Chief Executive Danny Malone stated, “Our priority now is to progress the orderly wind down of the business, ensuring we are able to maximize payments to redress creditors while also providing the best level of service possible to our customers and support for our staff.”