British subprime lender Amigo has said that its losses increased substantially in the last financial year, as it battles to secure its future after a court rejected a proposed rescue plan from the company in May.

Amigo posted a pre-tax loss of £284m for the year to March 2021, compared to a £38m loss the previous year.

The company's future has been in the balance since receiving a deluge of customer complaints that it missold them loans in recent years.

A proposal by the company that would have resulted in customer compensation being cut was rejected by London's High Court, after watchdog the Financial Conduct Authority objected.

Amigo said it was continuing to pursue an alternative scheme of arrangement, and that this provided a realistic alternative to the company's insolvency.

However, the company disclosed there was a "material uncertainty" around its ability to continue as a going concern.

"The continuation of Amigo as a business is dependent on our successful pursuit of a Scheme, our ability to raise capital in the future to further support new lending, and a satisfactory resolution of the FCA investigation initiated in May 2020," the company said.

Amigo entered the Irish market two years ago, but paused new lending last year blaming ongoing uncertainty caused by the Covid-19 pandemic.