British subprime lender Amigo has today posted a steep rise in first-quarter profit, days after reporting a sharp loss for its last financial year.
But the company reiterated there was "material uncertainty" about its ability to continue as a going concern.
Amigo's first quarter pretax profit rose to £15m compared to £1.4m a year earlier.
It said earlier this week it suffered a pretax loss of £284m for the year ending March 2021.
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 which would have resulted in customer compensation being cut was rejected by London's High Court, after watchdog the Financial Conduct Authority objected.
Amigo said today it had a complaints provision of £338m as at June 30, after using only £4.9m of its provision over the quarter.
"The performance of the business in the first quarter has been better than anticipated," said CFO Mike Corcoran.
"As Amigo is not currently lending, the business is cash-generative and our cost reduction programme has been effective," he added.
