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INSIDE THE CITY

Lender Amigo runs out of friends

The Sunday Times

Amigo Loans could do with a few friends.

The subprime lender, which hands as much as £10,000 within 24 hours to borrowers with a guarantor at a typical rate of 49.9%, has had a tough time since listing with a market value of £1.3bn in June last year.

Shares in Amigo, founded in 2005 by former petty criminal James Benamor, have crashed from 275p to 60.2p and the outlook does not look much better.

Hamish Paton, who has led the FTSE All-Share company since the summer, will announce the first-half results on Thursday. John Cronin, an analyst at Goodbody, expects a pre-tax operating profit of about £48m for the six months to the end of September, down from £58.3m a year ago, and forecasts a