Key points:
- Amigo shares edged slightly higher after appointing an interim CFO.
- However, the move does little to change Amigo’s current predicament.
- The approval of the New Business Scheme will give the lender a lifeline.
Amigo Holdings PLC (LON: AMGO) shared rallied 11.45% higher after the guarantor lender announced the appointment of a new Chief Financial Officer (CFO) on an interim basis.
The lender appointed Danny Malone as interim CFO for a four-month term from 7 February 2022 to 7 June 2022. Given the interim nature of the appointment, Amigo does not intend to appoint Danny as a company director.
Danny co-founded Everyday Loans in 2006 and was the company’s finance director up to 2013 when it was acquired Secure Trust Bank, after which he took on the role of CEO up to 2018.
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His previous roles include the CFO of CitiFinancial Europe PLC, part of Citigroup.
Danny is currently the Non-Executive Chairman at Floan Limited, a fintech startup business working in the Buy Now Pay Later sector, and is also a Non-Executive Director at The Personal Finance Centre Limited, a secured loan broker.
As Amigo’s shares barely moved on the news, investors were largely unimpressed by the news.
Amigo Loans faces an uncertain future as it awaits the approval of its new scheme of arrangement that significantly dilutes existing shareholders, which triggered the latest decline in its share price.
However, all is not lost for the guarantor lender, which could get a new lease of life if the UK High Court approves the new scheme allowing it to resume lending activities since the demand for its services remains relatively high.
Gary Jennison, Amigo Loan’s CEO, said: “I am delighted to welcome Danny to Amigo. Danny joins with extensive business and regulatory experience and has proven success operating as a CFO and at the senior board level across several businesses operating in the consumer finance sector. He will be a valuable addition to the senior management team at Amigo whilst we all work to deliver the best outcome we can in the circumstances to our customers, our shareholders and our other stakeholders.”
Despite Amigo shares looking pretty cheap, I wouldn’t buy them now since the company faces liquidation risk if the New Business Scheme is not approved. However, I would consider buying the shares once the scheme is approved.
*This is not investment advice. Always do your due diligence before making investment decisions.
Amigo share price.
Amigo share price edged 11.45% higher to trade at 2.53p, rising from Thursday’s closing price of 2.27p.
