Amigo Holdings hoping for reverse takeover as wind down continues

(Sharecast News) - Shares in struggling finance company Amigo Holdings surged on Monday - albeit from a low base - after the company said it had received some interest for the business. The guarantor loan company, which was unable to raise capital earlier this year and subsequently ceased lending, said it was looking at "other viable options" that could benefit shareholders.

"A number of tentative indications of interest have been received, but none of these has as yet resulted in an executable proposal. We believe that a reverse takeover is the only possible prospect of delivering any future value for shareholders," said outgoing chief executive Danny Malone who leaves at the end of the year.

Malone will be succeeded by Kerry Penfold, currently chief financial officer, who will manage the business through to its handover to liquidators later in 2024.

The stock was up 65% at 0.25p by 0816 GMT, though down from around 5p at the start of 2023 and just a fraction of the 250-300p level seen some five years ago.

The company is currently focused on winding down operations, reducing staff through redundancies and cutting fixed costs.

In its interim results on Monday, Amigo reported a loss before tax of £6.7m for the six months to 30 September, down from a loss of £12.7m the year before.

The net loan book reduced by 70% to £24.5m, leading to an 82% drop in revenues to £2.8m.