By Millie Turner
Amigo’s customer base has halved over the past year, despite promises it will return to lending by February next year and undergo a capital raise.
The beleaguered lender, which stopped lending in 2020 in order to deal with mis-selling complaints, has also had its revenue plummet nearly 70 per cent in the three months to 30 June to £10.4 from £32.5m in the same period last year.
Subject to consent by the Financial Conduct Authority, Amigo will return to the market with a revised guarantor loan and an unsecured non-guarantor loan product. The new products will be released under the RewardRate brand, in what the business has called “a new start”.
The capital raise, which should be a minimum of £15m to support future lending and still requires shareholder approval, must be completed by 26 May next year, the company said in a trading update today.
Supervisors from audit giant PwC will publish a report on Amigo’s progress in early September.
“We continue to engage positively with the FCA around our return to lending,” CEO Gary Jennison said in a statement. “This is the next step in our recovery, ahead of a proposed capital raise and would enable a new start for the business having taken on board the learnings from the past.”
Jennison said last month there were “not enough providers left” in the non-standard lending sector.
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