FINANCIAL RESULTS FOR THE YEAR TO 31 March 2019
Disclaimer This presentation has been prepared by Amigo Holdings PLC (“the Company”) and includes the results of Amigo Loans Group Ltd (“ALGL”) solely for informational purposes. A reconciliation of the results between the Company and ALGL is shown in the Appendix. For the purposes of this disclaimer, the presentation shall mean and include the slides that follow, the oral presentation of the slides by the Company or any person on their behalf, any question-and-answer session that follows the oral presentation, hard copies of this document and any materials distributed in connection with the presentation. By attending the meeting at which the presentation is made, dialing into the teleconference during which the presentation is made or reading the presentation, you will be deemed to have agreed to all of the restrictions that apply with regard to the presentation and acknowledged that you understand the legal and regulatory sanctions attached to the misuse, disclosure or improper circulation of the presentation. The Company has included non-IFRS financial measures in this presentation. These measurements may not be comparable to those of other companies. Reference to these non-IFRS financial measures should be considered in addition to IFRS financial measures, but should not be considered a substitute for results that are presented in accordance with IFRS. The information contained in this presentation has not been subject to any independent audit or review. Certain of the information contained in this document is based on estimates or expectations of the Company, and there can be no assurance that these estimates or expectations are or will prove to be accurate. The Company has not verified the accuracy of such information, data or predictions contained in this report. In addition, past performance of the Company is not indicative of future performance. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of this presentation or the opinions contained herein. The future performance of the Company will depend on numerous factors which are subject to uncertainty. Certain statements contained in this document are forward-looking statements, including, without limitation, any statements preceded by, followed by or including the words “targets,” “believes,” “expects,” “aims,” “intends,” “may,” “anticipates,” “would,” “could” or similar expressions or the negative thereof, notwithstanding that such statements are not specifically identified. Forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions which are difficult to predict and outside of the control of the management of the Company. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. The Company has based these assumptions on information currently available, if any one or more of these assumptions turn out to be incorrect, actual market results may differ from those predicted. While the Company does not know what impact any such differences may have on its business, if there are such differences, the Company’s future results of operations and financial condition, and the market price of the notes, could be materially adversely affected. You should not place undue reliance on these forward-looking statements. All subsequent written and oral forward-looking statements attributable to the Company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements referenced above. Forward-looking statements speak only as of the date on which such statements are made. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any of the information in this presentation to reflect events or circumstances after the date on which this presentation was made, or to reflect the occurrence of unanticipated events. The presentation does not constitute or form part of, and should not be construed as, an offer to sell or issue, or the solicita tion of an offer to purchase, subscribe to or acquire the Company or the Company’s securities, or an inducement to enter into investment activity in any jurisdiction in which such offer, solicitation, inducement or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of such jurisdiction. No part of this presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. This presentation is not for publication, release or distribution in any jurisdiction where to do so would constitute a violation of the relevant laws of such jurisdiction nor should it be taken or transmitted into such jurisdiction. Because consolidated financial information for the Company is not available prior to the year ended March 31, 2016, unless otherwise indicated, financial information presented in this presentation for periods prior to March 31, 2016 is that of Amigo Loans Ltd. Amigo Loans Ltd is the Company’s primary operating subsidiary and represented 99.9% of the Company’s consolidated revenue for the twelve months ended December 31, 2018, and differences between the consolidated financial information for the Company and financial information of Amigo Loans Ltd for periods prior to March 31, 2016 would be negligible. Introduction Key Highlights Financial Regulatory Outlook Appendix 2 Review Update
Today’s Presenters Nick Beal Stephan Wilcke Hamish Paton Nayan Kisnadwala Chief Regulatory & Public Affairs Officer Chairman CEO Designate CFO Introduction Key Highlights Financial Regulatory Outlook Appendix 3 Review Update
Agenda • Key Highlights • Financial Review • Regulatory Update • Outlook • Appendix 4
Amigo exists to provide financial inclusion to those excluded by mainstream lenders Efficiency through operating at Strong balance sheet with low Customer centric culture led Conservative risk management with diligent regulatory scale with one simple product leverage, high liquidity and by strong management discipline, solid conduct risk conservative provisioning governed by an accomplished Board management and robust credit risk management • • • • Strengthened board Stable cost income ratio Improved funding Levelling out of (Clare Salmon – RemCo) impairment ratio (under despite IPO related flexibility enables higher investments dividend IFRS 9) achieved as • Strengthened executive planned • • directors (Nayan Very significant increase in Testing portability (“Amigo Kisnadwala – CFO) • in a box”) in Ireland liquidity Codifying linkages between remuneration • • • Multiple executive Reduced funding costs Leverage reduced and risks as required committee hires in risk, operations and HR Introduction Key Highlights Financial Regulatory Outlook Appendix 5 Review Update
Amigo sits as the low end of the mid-cost consumer lending landscape The UK consumer credit landscape Introduction Key Highlights Financial Regulatory Outlook Appendix 6 Review Update
Key Financial Highlights – Year ended 31 March 2019 Customer numbers 1 23.1% Customer base of 224,000 (2018: 182,000), an increase of 23.1% year on year Net Loan Book 2 Net loan book of £707.6m, a 17.4% increase year on year (when the opening loan book is 17.4% growth restated with the IFRS 9 transitional adjustment) Adjusted profit after tax of £100.1m, an increase of 38.3% compared to the previous year Adjusted PAT 3 38.3% (2018: £72.4m) Inaugural £200m securitisation facility increased funding capacity and balance sheet Securitisation Capital Structure flexibility facilitating £80m of open market bond re-purchases Bond buy backs Final dividend of 7.45p per share payable on 31 July 2019, bringing total annual dividend per 50% of statutory Dividend profit share to 9.32p being 50% of statutory profit subject to AGM approval 1 Number of customers represents accounts with a balance greater than zero 2 Net loan book represents total outstanding loans less provision for impairment excluding deferred broker costs. 3 Adjusted profit is a non-IFRS measure. Adjusted profit after tax is profit after tax plus shareholder loan note interest (£6.0m) and IPO costs and related financing (£3.9m), less incremental tax expense (£0.9m) and adjusted for impact of the £80m bond buy back in the year (£2.5m) Introduction Key Highlights Financial Regulatory Outlook Appendix 7 Review Update
Amigo is delivering on or exceeding the guidance given at IPO KPIs Guidance 2019 Target a high-teens net loan book annual growth rate in the near term 17.4% Net loan book easing to the low-teens in the medium term Impairments as a % Mid-20% 23.7% of revenue Less than 20% Cost Income Ratio 17.5% Net debt / tangible 1.9x Operate in the range of 1.5 to 3.0x equity 35% initially, progressive thereafter Dividend 50% Introduction Key Highlights Financial Regulatory Outlook Appendix 8 Review Update
Recommend
More recommend
