- Guarantor loans provider Amigo said it was planning to restrart lending on a 'prudent basis' by the end of the year after reporting a slump in first-quarter profit as the coronavirus pandemic led to a fall in lending activity.

For the three month period ended 30 June 2020, pre-tax profit fell to £1.4m from £22.4m on-year as revenue fell 31.7% to £48.8m.

Revenue reduction was driven by the impact of Covid-19-related payment holidays and a temporary pause in all new lending except to key workers, the company said.

The net loan book fell 24.1% to £553.1m and the impairment-to-revenue ratio increased to 37.9% from 30.5%.

'We are on track to meet the agreement reached with the FCA to resolve our complaints backlog and continue to work with the FCA on its ongoing investigation. We have adequate liquidity and funding to support our ongoing business activity,' the company said.

'We are updating our lending processes and policies to enable Amigo to restart lending in a prudent manner by the end of 2020.'

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