Amigo Loans - comment

The timing of the announcement from the company regarding the management team is potentially troubling. The loss of your CEO is not good when you are fundraising... It is plausible that the management switch was intended and signposted to the FCA, but we are taken by surprise. The AGM is on 28 September and may be a factor in the timing. We think the timing is poor but Danny Malone has the right skills for Amigo 2.0 and the tacit backing of the FCA.

- CEO, Gary Jennison has stepped down and will be replaced by CFO Danny Malone. Kerry Penfold (head of finance) will replace Malone as CFO. Penfold joined as head of finance in February (the same time Malone joined as temporary CFO). Jennison’s departure at a time Amigo is seeking to raise cash is a warning sign and hints that the cash raise is not going well. Investors may have concerns about the UK economy and the impact on default rates in the next few years. Alternatively, Danny Malone’s immediate appointment as CEO and his replacement as CFO by Kerry Penfold will have been discussed and agreed upon with the FCA. Malone and Penfold joined Amigo in February, so a positive spin is that they were always the intended senior management team.

Announcement:

https://polaris.brighterir.com/public/amigo_loans/news/rns/story/x4npopr