Home
Strategies
Long Term Holding
Short Term Holding
CFDs & Leverage
The AIM
Long Term - Trackers
Tools
Case Studies
Commentary
Company Commentaries
Big News Commentaries
Should I Buy Shares In...
Case Studies
Misc
....For Dummies
2020 Dip
Historic Pricing
Feedback
Show Feedback
Add Feedback
Create User Name
GDPR
Menu
Home
Please see site map
Long Term Holding
Short Term Holding
Company Commentaries
Should I Buy Shares In...
Amigo Holdings PLC (lon:amgo)
Amigo Loans – I Am Sure That Everyone Else Is Wrong!
Amigo Holdings PLC Financials
Item
Current Period
Previous Period
Year
2019
2018
Period
3 Months
3 Months
Revenue
£72m
£63m
Earnings
Adjusted Earnings
EBITDA
Adjusted EBITDA
Statutory Profit
£18m
£12m
Adjusted Profit
Total Debt
£495m
£667m
Net Debt
Commentary History
Date
Title
Show All
Wed 03 Mar 2021
Amigo – Odd Price Rise.
Thu 28 Jan 2021
Amigo – Management Up The Stakes?
Tue 22 Dec 2020
Amigo – Looks Like The Management Have A Plan
Thu 26 Nov 2020
Amigo - The News Is No News
Thu 12 Nov 2020
Amigo – New Directors And An Important Lesson For Me
Wed 14 Oct 2020
Amigo – Will Gary Jennison Push Back?
Wed 30 Sep 2020
Amigo – The Board 3 – 1 Richmond Group, No JB Onto To Board
Thu 24 Sep 2020
Amigo –The Board Must Be Worryingly Close To Misleading Shareholders
Mon 14 Sep 2020
AMGO – JB Still Seems To See Himself As The Good Guy
Fri 28 Aug 2020
Amigo – The Board 2 – 1 Richmond Group (Their Strategy Becomes Clear)
Mon 24 Aug 2020
AMIGO – Another Comment From James Benamor
Wed 19 Aug 2020
Amigo – Is It About To Double, 10p To 20p?
Tue 21 Jul 2020
Amigo – Annual Report, Smug And Insulting?
Thu 09 Jul 2020
AMGO - Reappointment Of Glen Crawford
Fri 03 Jul 2020
Amigo – Now Seen As Genuine Public Company?
Mon 29 Jun 2020
Amigo – Richmond Are Carrying Out Their Sales Threat.
Wed 17 Jun 2020
Amigo – The Board 2 – 0 Richmond Group
Fri 05 Jun 2020
Amigo - The Board 1 – 0 Richmond Group
Thu 21 May 2020
Amigo – EGM Notification Was Really Disappointing
Fri 01 May 2020
Amigo – Replace The Board EGM
Tue 31 Mar 2020
Amigo – Does BrightHouse’s Closure Also Spell The End Of Amigo?
Wed 29 Jan 2020
Amigo Loans – Is It An Example Of Looking Fair Better On The Outside?
Tue 10 Sep 2019
Amigo Loans – I Am Sure That Everyone Else Is Wrong!
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:
Amigo Loans – I Am Sure That Everyone Else Is Wrong!
Company:
AMGO - Amigo Holdings PLC
Share Price Then:
72p
Author:
Ian Smith
Date:
Tue 10 Sep 2019
Comments:
A few weeks ago Amigo Loans, one of the big players in the guaranteed loans market, announced its first quarter results and this sent the shares down by about 50%.
This seems to be a result of an increase in expected bad debt up from 25% of the revenue to 30%, whilst this seems horribly high some of this may be a result of accounting changes, accepting bad debt earlier than in the past.
Added to this there are strong concerns that the regulators are going to hit this industry now after Payday Loans and Doorstep Lending.
In particular persistent debt caused by repeat loans and top ups, about 12% of Amigo borrowers have had two or more tops ups.
The other area, loans having to be repaid by the guarantor have remained broadly steady during the last year at just under 10%,
So I went looking at review sites to see what the unhappy customers are saying and there seem to be three types of complaint.
On a blog called
Debt Camel
there was this question.
I agreed to be the guarantor for a loan for a friend, but he lied to me and couldn’t pay it. Amigo were very difficult, wanting me to stop paying other debts so I could pay them, and got a CCJ. Is it too late for me to complain and ask to be removed as the guarantor?
Which seems to be typical of many complaints by the guarantor, they didn’t really think that they would have to pay. It does appear that Amigo gets into contact with the guarantor very quickly after payments are missed rather than waiting say a year and letting the debt become unmanageable.
The other main complaint is the Amigo ask too many questions before considering a loan and turn some people down, although a few people seem to complain that they or someone else was lent money too easily!
There are also the normal complaints that all financial organisations get;
They want me to pay the money back.
The complaints seem to be a combination of what you might expect but to me also suggest that Amigo are very much on top of missed payments.
Given the nature of the business debt has a different meaning to most businesses, the money is borrowed to be lent and the amount out on loan is up to £728.4m from £638.2m and the plan is not to increase this.
So when I consider the above, what look like good numbers and a P/E of about 3.6 I am struggling to see what it is that concerns others so much.
I have looked at Funding Circle and see loses and It’s almost as if people like to invest in companies that are losing money but promise big profits in the future.
Read Count/ID:
564/10084
Buy/No Buy In A Nutshell
Negatives
A 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.
Positives
New 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 Price
7p
Last Review Price
9.3p
Last Review Date
20-Nov-2020
Navigation & Details
Pages
Home
Home.
Commentaries
Select Commentaries.
My Grades
Clarification
Share Commentaries, their purpose.
Clarification of the intent of these commentaries.