Amigo Holdings PLC (lon:amgo)
AMGO - Reappointment Of Glen Crawford

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Amigo Holdings PLC Share Price
Grade:The Pink Grade - A Pure Slightly Informed Gamble, The Market Doesn't Like The Company But I Think That I Understand Why.
Title: AMGO - Reappointment Of Glen Crawford
Company: AMGO - Amigo Holdings PLC
Share Price Then: 13p
Author: Ian Smith
Date: Thu 09 Jul 2020
Comments: Glen Crawford has been reappointed CEO, so is this good or bad news?

The group has over £100 million in cash, were reporting possible £35m impairments for bad loans and then significantly more than that.

A new CEO could mean a more aggressive approach on these complaints, I am still confused by the problem, person A takes out a loan person B guarantees it and it is the loan companies fault for not checking hard enough that it was affordable.

That is 2 people on the borrowing side who thought that the borrower could afford it, I understand that the borrower may have been desperate and guarantor naive in believing the borrower but who guarantees loans for strangers?

It would have to have been for a close friend or relative.

Even if the whole £100m were needed to resolve this issue, there were still £700m of loans outstanding in March 2019 at 49%.

Glen was originally a lawyer and a founder Cabot Financial a debt collection agency and from the article at the time an appoint of choice for James Benamor as Amigo was still private at the time.

Not much has been said about his objectives, is it possible that the objective is to fix the misspelling issue and continue to operate? There is certainly going to be a demand over the next few years.

Glen stepped down in April 2019 and the FCA investigation covers loans from November 2018 onwards, so was he part of an over aggressive expansion of the loan book, hence part of the problem or does he have a unique insight into both the problem and the future.

With the Richmond Group continuing its sell off, down to 46.6% today is their sell off still on? The sale of 1% of the company every date has been reported as irrevocable and there are no circumstances in which these instructions can be cancelled or amended.

If these instructions really are irrevocable then it won’t be long before Richmomd’s holdings become a non issue.

With Hamish Patton ex CEO joining Provident as the MD of Consumer Credit with the full inside knowledge of the situation at Amigo and the similarities between Provident and Amigo if there isn’t an offer/another offer then Amigo may be in a worse situation then we think even now.
Read Count: 272/13155

Buy/No Buy In A Nutshell
NegativesA combination of making risky loans and an unwillingness to tell complainants and regulators that the borrower and guarantor has the majority of the responsibility as they asked for and accepted the loan. Claims companies have joined tge bandwagon.
PositivesNew management could get much more aggressive with people complaining that they asked for and were given loans but they can't afford them.
Initial Review Price7p
Last Review Price9.3p
Last Review Date20-Nov-2020
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