Amigo Resources (AMGO) H2 2024 earnings summary

Executive summary

• The business initiated an orderly solvent wind down after switching to the Fallback Solution under the court-sanctioned Scheme of Arrangement in March 2023, ending all lending activities.

• The company is no longer considered a going concern, with the collection or sale of existing loan books nearly complete.

• Redundancy programs have been implemented, with all employees affected and CEO and CFO roles merged after the CEO's departure.

• Over £235k was raised to explore Reverse Takeover (RTO) opportunities, with ongoing discussions and Jim McColl engaged to assist.

• If no RTO is found, the wind down will leave no value for shareholders.

Financial highlights

• Reported a net loss after tax of £12.6 million for the year ended 31 March 2024, a 63.8% improvement year-over-year, reflecting increased provisions for complaints and future costs.

• Revenue declined 82% year-over-year as loan books ran off.

• Net asset value reduced to nil, with all value from the wind down payable to scheme creditors.

• Cash available at year-end was £174.9 million, with current cash held at £56.6 million after scheme payments.

• Operating expenses decreased by 51%, with significant savings in staff, legal, and IT costs.

Outlook and guidance

• Focus remains on seeking alternative opportunities, primarily a reverse takeover (RTO), to restore some value for shareholders.

• No guarantee of success in RTO efforts; if unsuccessful, wind down will result in no shareholder value.

• Jim McColl has been engaged to assist in the RTO search and is expected to join the Board.