Amigo Holdings PLC on Wednesday said it remained confident in the long-term viability of the guarantor model as it announced a pause to its guarantor loan offer due to higher acquisition cost per loan, as it said it exited its Irish business in February.

The Bournemouth, England-based mid-cost credit provider said that at the end of February, it exited its loss-making Irish business, which ceased new lending activities in 2020.

Further, the company said there has been no material change in trading activity for the run-off of the legacy loan book since February 23, adding that demand for the new RewardRate brand remained strong.

‘The conversion rate is improving but remains challenging and the current run rate for monthly originations remains in excess of £1 million,’ it said.

Amigo Holdings shares fell 10% to 2.25 pence each on Wednesday afternoon in London.

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