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RNS Number : 8033T Amigo Holdings PLC 29 November 2021 29 November 2021 Headlines Amigo Holdings PLC Interim results for the six months ended 30 September 2021 Amigo Holdings PLC , ( Amigo ) , announces results for the six - month period ended 30 September 2021 . Following the Court not sanctioning the original proposed Scheme of Arrangement ( " Scheme " ) in May 2021 , the Board continues to pursue a new Scheme to address the complaints liability and provide a solution for customers with a valid complaint . An independent Customer Committee ( " ICC " ) was set up in response to the recommendations of the judge at Amigo's High Court Scheme sanction hearing to ensure the voice of customers is heard . On 28 September 2021. Amiao submitted a new Scheme proposal . along with its future business plan . to the Financial Conduct Authoritv ( " FCA " ) and the ICC . A revised offer . which incorporates two Scheme options . was submitted to the ICC on 12 November . The Board's view is that a Scheme that is contingent on a continuing business will provide creditors with more value and a more certain outcome . While neither of our proposed Schemes is expected to satisfy the liability owed to redress creditors with valid claims in full , the contribution to the new Scheme will be significantly increased . This is . in large part . due to improved collections relative to the assumptions made for the first Scheme . in December 2020. when the impact of Covid - 19 remained highly uncertain . as well as the delaved implementation of balance adiustments on the loan book . Amiao will be proposing an equitv raise alonaside the Scheme to support the future business . This is likely to result in material dilution which will lead to existing shareholders owning a much smaller proportion of the aroup if they do not take up their rights . The Board is also considering an early part repayment or repurchase of the senior secured notes . The next step will be to issue the Practice Statement Letter ( " PSL " ) to relevant creditors explaining the options for a second Scheme . The Court process will then beain . which is estimated to take at least four months . As noted previously , the sanctioning of a new Scheme is increasingly urgent . Without an approved Scheme , Amigo expects to have to file for administration or other insolvency process . Financial headlines Figures in £ m , unless otherwise stated Number of customers ¹ Net loan book² * Revenue Impairment coverage Complaints provision ( balance sheet ) Complaints cost ( income statement ) Profit / ( loss ) before tax Profit / ( loss ) after tax³ Adjusted profit / ( loss ) after tax 4 * Basic EPS EPS ( Basic , adjusted ) 5 * Net borrowings6 * Net borrowings / Gross loan book 7 * ' 000 % Pence Pence % H1 2022 102.0 224.1 56.5 22.5 ( 344.3 ) ( 5.3 ) 2.1 3.3 2.0 0.7 0.4 2.1 ( 0.7 ) H1 2021 Change % 176.0 ( 42.0 ) 485.2 92.3 14.0 ( 159.1 ) ( 93.7 ) ( 62.6 ) ( 67.9 ) ( 58.1 ) ( 14.3 ) ( 12.2 ) ( 265.5 ) 47.1 ( 53.8 ) ( 38.8 ) 60.7 116.4 ( 94.3 ) 103.4 104.9 103.4 104.9 103.3 ( 100.8 ) ( 101.5 ) The approval of an alternative Scheme remains subject to reaching key milestones including a second successful creditor vote and approval by the High Court at a sanction hearing . At this point , the Board does not consider there to be enough certainty to account for claims redress on the basis that a Scheme will be sanctioned . In considering the presentation of the interim results , the Board has concluded that the amount recognised for complaints redress should continue to be included on the basis that known and expected future complaints are settled in full . The Board has concluded there is a material uncertainty over going concern ( see note 1 to the financial statements for further information ) . Despite this , the Board considers that it remains appropriate to prepare these financial statements on a going concern basis , as the continued pursuit of a Scheme provides a realistic alternative to insolvency . Net loan book reduction of 53.8 % to £ 224.1m ( H1 2021 : £ 485.2m ) due to the runoff of the back book and the continued pause in new lending throughout the period . Revenue reduction of 38.8 % to £ 56.5m ( H1 2021 : £ 92.3m ) . Complaints provision broadly unchanged from year end at £ 344.3m ( FY 2021 : £ 344.6m ; H1 2021 : £ 159.1m ) . Application of incremental compensatory interest accrued in the period is partially offset by an increase in the estimated portion of known and potential complaint customers charaina off the loan book due to the passage of time . Complaints cost in the period of £ 5.3m ( H1 2021 : £ 93.7m ) . Underlying collection levels continue to be better than modelled within the first Scheme projections in December 2020. However , impairment coverage has increased to 22.5 % ( H1 2021 : 14.0 % ) . driven by a reforecast of expected credit losses to reflect an increasina trend in the level of arrears observed in the period . predominantly but not exclusivelv . from customers exitina Covid - 19 payment holidays . Reported statutory profit before tax for the six months to 30 September 2021 was £ 2.1m ( H1 2021 : loss of £ 62.6m ) . £ 234.5m of unrestricted cash and cash equivalents as at 30 September 2021 ( H1 2021 : £ 134.2m ) reflects continued strong cash generation : current unrestricted cash balance of over £ 260m . Net liabilities of £ 117.6m as at 30 September 2021 ( H1 2021 : net assets £ 99.6m ) . Net borrowings of £ 2.1m at 30 September 2021 ( HY 2021 : ( £ 265.5m ) ) driven by continued collections while originations remained suspended . This has allowed the repayment of the securitisation facilitv . Final Covid - 19 payment holidays were implemented prior to the start of the period , in March 2021 and had all concluded by the end of July 2021. There were therefore no associated modification losses recognised in the period . Alternative forbearance measures continue to be offered to customers experiencing financial difficulty . Page 1 of 27 * Detailed definitions and calculations of Amigo's alternative performance measures ( APMS ) can be found in the APM section of these condensed financial statements . Gary Jennison , CEO of Amigo , said : " We're pleased to be providing a meaningful update on our progress towards a new Scheme as we recognise it has been a long wait for all