Amended Voluntary Requirement with FCA
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
FOR IMMEDIATE RELEASE
3 July 2020
Amigo Holdings PLC
("Amigo" or the "Company")
Amended Voluntary Requirement with FCA
Further to our announcement on 22 June 2020, Amigo has yesterday entered into an amended Voluntary Requirement ('VReq') with the Financial Conduct Authority (the 'FCA'). Under the terms of the amended VReq, the Company has agreed to reach a position by 30 October 2020 where all complaints are dealt with appropriately within eight weeks.
The extension of the VReq from 26 June 2020 to 30 October 2020 implies that the number of complaints covered by the VReq will be substantially increased. As previously announced on 8 June 2020, the cost of the original VReq was estimated to be at least £35 million and could be materially higher. Whilst there is significant uncertainty about the eventual outcome, the cost of the amended VReq is expected to be substantially higher than the estimate of at least £35 million, as it will cover a longer period and will be dependent on the total number of complaints received.
Amigo expects to report a material increase in the year end provision in respect of the increased number of complaints being received. As announced on 22 June 2020, this will be included in the full year results for the year ended 31 March 2020, which are expected to be announced on or before 23 July 2020.
The Company's liquidity remains strong. Amigo has sufficient financial headroom and cash on its balance sheet to continue to fund operations and support its customers during this challenging time. Amigo had a cash balance of over 136 million as at 30 June 2020.
Richmond Group Ltd ('RGL'), the majority shareholder continues to sell 1% of the Company every trading day in line with their commitment made to the Company and announced by us on 5 June 2020. RGL have indicated that this will continue until their shareholding is sold down. As a result of the recent changes in the shareholder register, Amigo's free float is currently 35.8%. As noted in our announcement on 17 April 2020, the FCA requires premium listed companies to maintain a free float of at least 25% of their shares admitted to trading and Amigo's free float now exceeds this level.
Contacts:
Company
Amigo Holdings PLC investors@amigo.me
Kate Patrick Head of Investor Relations
Roger Bennett Company Secretary
Media
Hawthorn Advisors amigo@hawthornadvisors.com
Lorna Cobbett Tel: +44 (0)7771 344 781
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014. The person responsible for this announcement is Roger Bennett, Company Secretary.
Senior Secured Notes
This announcement constitutes notice by Amigo Luxembourg S.A. (the "Issuer") to the holders of the Issuer's 7.625% Senior Secured Notes due 2024 (for the notes issued pursuant to Rule 144A of the United States Securities Act of 1933, ISIN: XS1533928468 and Common Code: 153392846; for the notes issued pursuant to Regulation S of the United States Securities Act of 1933, ISIN: XS1533928625 and Common Code: 153392862) (the "Notes") issued pursuant to pursuant to Section 4.03(a)(3) of an indenture dated January 20, 2017 among, inter alia, the Issuer, the guarantors named therein and U.S. Bank Trustees Limited, as trustee and security agent. Amigo Holdings PLC is the indirect parent company of the Issuer. This announcement shall constitute a "Report" to holders of the Notes.
ENDS
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