Amigo Loans suffers huge slide in earnings

The company behind subprime lender Amigo Loans said that it had seen a massive drop in profit as its founder eyes a return in what could prove to be a drawn- out battle with the board.

Amigo Holdings made a £ 3 million pre- tax profit in the three months to 30 June, an 83 per cent drop from its £ 18.1m profit this time last year.

Investors had been expecting a fall, as the company paused most new lending and extended payments holiday to 47,000 customers during parts of the Covid- 19 pandemic.

Amid warnings that it may not be able to continue trading, the struggling lender has been thrown into a battle over its future with founder James Benamor.

On Monday, the board urged Benamor not to insist on calling a shareholder vote on a series of proposals.

Separately yesterday, Amigo said Benamor has withdrawn his demand for a shareholder vote that could remove the newly reappointed CEO.