Former Secret Millionaire Benamor banks a fortune from loan firm’s flotation

Founder of Amigo Loans and other staff collect £327m as lender lists on Stock Exchange

ONE-TIME “Secret Millionaire” James Benamor will pick up the lion’s share of a £327m windfall after Amigo Loans, the subprime lender he founded, floated yesterday.

The company, which offers loans to those with bad credit who can put up a friend or relative as guarantor, priced its initial public offering at 275p per share, valuing it at £1.3bn. Shares closed up 4.2pc at 286.5p.

Mr Benamor, 41, and other directors and staff made close to £330m from the flotation. Glen Crawford, the chief executive, said the IPO was a “significant milestone” for the company, adding: “We look forward to further growth and success as a listed company and helping even more people who need alternative finance options.”

The float, which was revealed earlier this month, prices Amigo towards the upper end of expectations.

Mr Benamor, who appeared on the Channel 4 series Secret Millionaire in 2008, already had an estimated wealth of £380m, according to the latest Sunday Times Rich List.

He and other directors including Mr Crawford will be subject to a six-month lock-up period. Amigo’s loans of up to £10,000 come with an annual interest rate of around 50pc, higher than a bank loan or credit card but significantly lower than the fees charged by some short-term payday lenders. Amigo has a loan book of £647m and around 182,000 borrowers.

Mr Benamor launched the Bournemouth-based company in 2005, six years after founding Richmond Group, his first loans brokerage business, aged 21. Richmond Group remains the parent company. According to its latest set of accounts for the year to March 2017, it posted a third jump in net profits to £66m, while revenues increased 30pc to £134.6m. It also set up shop in Poland under the brand Rapida.

Amigo Loans’ rapid growth has come against a backdrop of increasing concern about British consumers’ indebtedness. The Financial Conduct Authority warned lenders in March to strengthen their credit checks, saying even “the slightest sign of rough weather” in the economy could put a “significant” number of households in distress.

JP Morgan, RBC Capital Markets and Macquarie Capital managed Amigo’s flotation.

‘Amigo’s loans of up to £10k have annual interest rates of around 50pc – higher than a bank loan but less than some payday lenders’

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