Anexo Group plc (LON:ANX), the specialist integrated credit hire and legal services provider, has provided the following pre-close trading update for the year ended 31 December 2021 ahead of the release of its FY-2021 Final Results on 11th May 2022.
Highlights
· Current trading is in line with management expectations
· The Group remains focused on quality claims, high service standards and high success rates. The number of vehicles on the road has been reduced to 1,955
· Bond Turner’s Housing Disrepair team has settled 850 cases since inception and a further 1,800 cases are currently under management
· New debt funding of £10.5 million has been secured
· The funding facility provided by Secure Trust Bank Plc is being increased by a further £7.5 million through three quarterly increases during 2022
Current Trading
Further to the FY 2021 trading update provided on 18 January 2022, the Group is pleased to announce that trading across all its divisions remains in line with management expectations. Following the successful launch of the MCE insurance contract in November 2021, the Group has modified its approach to vehicle funding accordingly, with a continued focus on quality claims, high service standards and high success rates. The adoption of this targeted approach has led to a reduction in the number of vehicles on the road within the Group’s credit hire division, EDGE, and the current total stands at 1,955. This represents a significant increase on the same period last year and stands at a level which facilitates management of the Group’s working capital requirements.
The Group’s legal division, Bond Turner, continues to benefit from the re-opening of the court system, which enables litigators to increase case settlements and cash collection, supporting further investment in new cases. This trend is expected to continue through 2022 and cash collections are currently running at record levels.
On 7 December 2021 the Group announced a new Housing Disrepair team within Bond Turner. The team continues to perform strongly; it is currently dealing with approximately 1,800 cases and since inception has settled approximately 850 cases. The Board believes that the prospects for growth in this division are very positive.
The Group continues to monitor the legal action against Volkswagen AG (the ‘VW Emissions’ case). A court date for the hearing of the class action has been set for January 2023. The Board believes there is a likelihood of further developments during the course of 2022.
Increase In Debt Facilities
The Group is pleased to announce an increase in its overall debt facilities. New debt facilities of £7.5 million have been secured from a new lender on regular commercial terms. In addition, the funding facility provided by Secure Trust Bank Plc (Secure Trust) is being increased by £7.5 million through three quarterly increases of £2.5 million, taking the overall facility to £40.0 million. This increased facility is provided on the same commercial terms as those announced on 30 September 2021.
The Group has also secured a further £3.0 million of litigation funding to support investment in further diesel emission class actions.
Alan Sellers, Executive Chairman of Anexo Group, commented: “We are pleased to report that Anexo continues to operate in line with management’s expectations. Overall, we have seen improvement across all business areas and our targeted approach has resulted in a continued emphasis on quality claims, high success rates and high levels of service to our customers. Cash collections continue to improve on an ongoing basis. We look forward to updating shareholders further at our final results in May.”
Anexo Group is a specialist integrated credit hire and legal services provider. The Group has created a unique business model by combining a direct capture Credit Hire business with a wholly owned Legal Services firm. The integrated business targets the impecunious not at fault motorist, referring to those who do not have the financial means or access to a replacement vehicle.
Through its dedicated Credit Hire sales team and network of over 1,100 active introducers around the UK, Anexo provides customers with an end-to-end service including the provision of Credit Hire vehicles, assistance with repair and recovery, and claims management services. The Group’s Legal Services division, Bond Turner, provides the legal support to maximise the recovery of costs through settlement or court action as well as the processing of any associated personal injury claim.
