Amigo stocks rally despite dismal quarterly results
Shares rallied over 30% as its founder called for a takeover
Stocks impacted: Amigo Holdings PLC (AMGO)
British guarantor loans provider posted a sharp drop in first-quarter earnings due to the granting of payment holidays. Revenue was down 32% to GBP48.8 million from GBP71.5 million in the first quarter last year, while pretax profit declined to GBP1.4 million from GBP22.6 million and profit was down more than 80%. However, the company’s stocks surged over 30% after its founder and former Chief Executive James Benamor called on private investors to back his reinstatement. Benamor said he had made an irrevocable bid for 29% of the company at 20 pence per share, to be executed if he is appointed as chief executive. Benamor had stepped back from running Amigo after its listing in 2018, but has been embroiled in a public row with the company's management over strategy since late last year. As of writing, Amigo stocks were up 15.55% on the day.
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