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amigo holdings plc

Amigo Holdings PLC Significant growth in revenue to £130.1 million

Amigo Holdings PLC (LON:AMGO) today announced interim results for the six months ended 30 September 2018

Figures in £ million, unless otherwise stated

Six Months ended

30 September 2018

Six Months ended

30 September 2017

Change %

IFRS 9

IAS 39

Revenue

130.1

92.6

40%

Impairment / revenue

%

23%

19%

21%

Adjusted profit after tax1

47.2

33.8

40%

Profit after tax

37.7

24.2

56%

EPS (Basic, adjusted)2

pence

10.8

8.5

27%

Basic EPS

pence

8.6

6.1

41%

Dividend per share

pence

1.87

n.a.

n.a.

Net loan book3

671.7

541.6

24%

Net borrowings4/gross loan book5

%

63%

68%

(7)%

Net borrowings /adjusted tangible equity6

2.3x

2.4x

(4)%

Number of customers7

‘000s

207

155

34%

 

Notes:

1 Adjusted profit is a non IFRS measure. Adjusted profit after tax is profit after tax plus shareholder loan note interest (£6.0m) and IPO costs and related financing (£3.9m) less incremental tax expense (£0.4m) as shown in note 6

2 This is a non-IFRS measure and the calculation is shown in note 6. Shareholder loan note interest is excluded as the loan notes were converted to equity immediately before admission while IPO costs are also non-recurring in nature. By excluding these items from the adjusted profit and EPS metrics, the Directors are of the opinion that these measures give a better understanding of the underlying performance of the business

3 Net loan book represents total outstanding loans less provision for impairment excluding deferred broker costs

4 Net borrowings is defined as borrowings, excluding shareholder loan notes, less cash at bank and in hand

5 Gross loan book represents total outstanding loans excluding deferred broker costs

6 Adjusted Tangible Equity is defined as shareholder equity less intangible assets plus shareholder loan notes

7 Number of customers represents accounts with a balance greater than zero

Financial highlights

§ Significant growth in revenue to £130.1 million, an increase of 40% (H1 2017: £92.6 million)

§ Net Loan Book of £671.7 million (H1 2017: £541.6 million pre IFRS 9)

§ The impairment charge as a percentage of revenue at half year is 23% on an IFRS 9 basis

§ Adjusted profit after tax of £47.2 million; an increase of 40% compared to the previous year

§ Profit after tax of £37.7 million; an increase of 56% compared to the previous year

§ Customer base of 207,000 (H1 2017: 155,000), an increase of 34% year on year

§ Inaugural interim dividend of 1.87p per share payable on 29 January 2019

Company highlights

§ Company completed its initial public offering (“IPO”) in July 2018 and joined the FTSE 250 in September 2018

§ Announced inaugural securitisation on 13 November 2018 for a £150 million facility

§ Increased customer interaction through the Amigo app, which enhances our ability to offer customers easy access to manage their finances

§ ‘Treating Customers Fairly Champion’ at the Consumer Credit Awards in July 2018

§ ‘UK Contact Centre of the Year’ winner at the UK Contact Centre Forum Awards, November 2018

§ Added strength to the Board through the appointment of Clare Salmon as an independent non-executive director in November 2018

Commenting on the half year results, Glen Crawford, CEO of Amigo, said:

“I am delighted to present the first interim accounts for the business as a PLC following its listing and the subsequent inclusion in the FTSE 250 in September 2018.

Amigo has had a strong start on its journey as a listed Company with results showing growth across all our key performance indicators. We are delighted to have welcomed over 50,000 new customers during the last twelve months, contributing to an increase in both our loan book and revenue. On the back of these positive results, Amigo is pleased to announce our first interim dividend of 1.87 pence per share.

We are continuing to work hard to deliver on the objectives we set out at the time of listing and have implemented a number of these initiatives. These include a new securitisation funding line for £150 million and we are pleased to welcome Clare Salmon onto the Board as a new independent non-executive director.

There are millions of people across the UK who find themselves turned away by their high street banks and unable to access the financing they need for important life costs. Our continued success positions us well to deliver our goal of meeting the growing needs of these individuals, providing access to a flexible, mid-cost financing option – a simple guarantor loan product at an APR of 49.9%.”