Amigo Holdings PLC (LON:AMGO) Financial results for the nine month period ended 31 December 2018
Financial highlights
§ Net Loan Book of £695.7 million (Q3 2017: £607.0 million pre IFRS 9), a 15% increase year-on-year
§ Significant growth in revenue to £201.0 million, an increase of 34% compared to the previous period (9 months ended 31 December 2017: £149.9 million)
§ Impairment charge as a percentage of revenue at Q3 is 24% and for FY19 reflects the implementation of IFRS 9
§ 95% of balances are fully up to date or within 31 days overdue, reflecting the underlying credit quality of the loan book
§ Adjusted profit after tax of £72.0 million; an increase of 37% compared to the previous year
§ Profit after tax of £62.5 million; an increase of 63% compared to the previous year
§ Dividend of 1.87 pence per share paid in January
§ Customer base of 217,000 (Q3 2017: 169,000), an increase of 28% year-on-year
§ Amigo is on track to meet the guidance for FY19, as set out at the time of IPO
§ We continue to monitor potential effects of Brexit
Company highlights
§ The inaugural securitisation in November 2018 for a £150 million facility has been increased to £200 million providing greater balance sheet flexibility
§ Executed a bond repurchase in the open market of £8.7 million in Q3 and a further £50.8 million during the current quarter, reducing Amigo’s cost of funding
§ ‘Best Credit Builder’ winner in the Moneynet Awards in January 2019 for the sixth year running
§ Amigo made its first loans to customers in the Republic of Ireland in February 2019; and the first step in testing the transferability of the “Amigo in a box” systems and processes in a new market
§ Appointment of Nayan Kisnadwala as Chief Financial Officer in December 2018
Commenting on the Q3 results, Glen Crawford, CEO of Amigo, said:
“Amigo has reported another strong set of results this quarter, delivering further growth in our customer numbers, loan book and revenue, whilst continuing to carefully manage our impairment levels.
We are pleased that Nayan has now joined the Board as our Chief Financial Officer, with extensive experience to help us deliver the next stage of Amigo’s development.
We continue to optimise our funding mix and have increased our securitisation facility by an additional £50M, taking the total available facility to £200M. This has facilitated the Group’s opportunistic open-market buyback of £59.5M of our 2024 bonds, thereby reducing our average cost of capital going forward and providing greater balance sheet flexibility.
With additional diversified and lower cost funding lines in place, a disciplined approach to credit risk and significant operational leverage, we remain confident of delivering on the objectives for the full year set out at the time of our IPO whilst adopting a cautious approach to loan book growth due to Brexit uncertainties.
Our primary goal is to meet the needs of the millions of people in the UK turned away by their banks and unable to access the money they need. Our simple, flexible, mid-cost product – a guarantor loan at 49.9% APR with no additional fees – continues to provide a genuine alternative for this group of individuals.”
