
4
Amigo Holdings PLC
Annual report and accounts 2023
Chair’s statement
Strategic report
It is with great sadness that I introduce
this year’s annual financial results
for the year ended 31 March 2023.
Thepast twelve months have
beenan extraordinarily challenging
period.
Wemade significant progress
during
the first nine months, firstly
achieving sanction for our Scheme
of Arrangement (“Scheme”) and
then securing permission from our
regulator, the Financial Conduct
Authority (“FCA”), to return to lending
with
the pilot launch of our new RewardRate
products. Unfortunately, market
conditions moved against us and,
despite securing offers for the required
debt funding, we were unable to raise
sufficient interest to underwrite the
required equity funding to pay a
further £15m contribution to Scheme
creditors and continue as a going
concern. As a result, on 23March
2023, the Board announced that it had
taken the difficult decision to switch the
Scheme from its Preferred Solution to
the Fallback Solution, which requires
Amigo to wind down itsAmigo Loans
Ltd business. As this is the only
revenue-generating business within
the Group, it is envisaged that the
whole Group will be liquidated. The
Board is deeply sorry for the impact
this will have on Scheme creditors
(who will receive less compensation),
our shareholders and employees.
While an agreement has been signed
with a shareholder who approached
management regarding seeking
investment in the Company or its
subsidiaries, the Board considers
that establishing a new business
and potentially creating value for
shareholders in the longer term
has significant execution risks and
would require regulatory approval.
We are pursuing all avenues in line
with our Directors’ duties, under
the Companies Act, to consider the
interests of all stakeholders, including
creditors, shareholders and employees.
However, as a result of Amigo’s Scheme
of Arrangement switch to the Fallback
Solution (the orderly wind down of the
Amigo Loans Ltd business), the Board
has determined that the financial
statements will no longer be prepared
on a going concern basis (note 1 of
the financial statements). Under the
Fallback Solution there is no expected
residual value for shareholders.
The Board currently intends to ask
shareholders to vote at the AGM in
September on proposals to delist the
PLC shares unless discussions with
potential investors progress towards
asuccessful conclusion.
Culture and conduct
In February, the FCA Enforcement
proceedings into the Group’s historic
lending practices and complaints
handling were concluded. Although
Amigo was not required to pay a
financial penalty, were it not for Amigo’s
financial position, we would have
been subject to a penalty of £72.9m.
In reaching agreement on the level of
the final penalty, the FCA recognised
that any penalty would cause Amigo
serious financial hardship and would
threaten the Company’s ability to meet
its
commitments to its Scheme creditors.
We are cognisant of the time afforded
to Amigo by the FCA throughout
the Scheme process and grateful
for its recognition of the significant
programme of change Amigo has
undertaken to deliver improvements
to the way in which our business
operates, including providing fair
outcomes to customers. Amigo has
made great strides in setting a culture
where the needs of our customers
are paramount, where we operate
inan open and constructive manner,
and monitor and measure conduct
and outcomes. As we move through
the wind down process, we remain
committed to delivering the highest
standards of corporate oversight with
diligence and integrity.
Jonathan Roe
Chair