- Guarantor loans provider Amigo reset annual expectations blaming a weaker economic outlook and expectations that impairment would remain at a higher level than previously expected.

The company said it was resetting expectations for the current financial year, with loan book growth expected to be broadly flat, impairment over revenue ratio to come in at low to mid 30s percentage and our cost over income ratio expected to be in the low 20s percentage.

The weaker outlook comes as the company reported a rise in profit before tax as revenue jumped amid a rise in loan growth.

For the three month period ended 30 June 2019, pre-tax profit rose to £22.6m form 17m a year earlier and revenue increased 13.7% to £71.5m.

The net loan book grew 14.1% to £728.4m for the quarter from a year earlier, driven by a 17.3% rise in customers.

'(T)he operational challenges that we are addressing will take time, and coupled with a deteriorating economic outlook, we expect impairment to remain at a higher level than previously expected,' the company said.

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