Credit hire and legal services group reports strong interims

Company chiefs welcomed another set of strong financial results today at Anexo Group, the Liverpool-based specialist integrated credit hire and legal services provider.

Reporting interim figures for the six months to June 30, Anexo revealed a 55.5% rise in revenues to £36.7m, while pre-tax profits increased from £5.34m to £10.43m.

It is poised to pay a proposed interim dividend of 1p per share, compared with no dividend this time last year.

The AIM-listed group is a specialist integrated credit hire and legal services group focused on providing replacement vehicles and associated legal services to customers involved in a non-fault accident.

Post period end, the group successfully renegotiated its working capital facilities, securing considerable improvements in its financing arrangements, and agreed new terms with fleet insurance providers to deliver enhanced savings in the remainder of financial year 2019 and in 2020

The group is also on track to meet financial year 2019 market expectations of adjusted profit before tax of £23m.

It said its fully stand-alone new legal office in Bolton achieved break even point within four months.

The Bolton office increased headcount to 63 by June 30, of which 28 were experienced litigators, increasing the group’s ability to settle cases and generate cash. As at June 30, a further 10 experienced litigators had accepted positions and not yet started.

Following a period of significant growth across the group, the expansion of the vehicle fleet has been more measured as the group seeks to optimise margin and cash collections, thus underpinning an improvement in financial performance.

The number of vehicles on hire at the period end was 1,571, a 26.7% increase on the 1,240 figure at the same time last year.

The average number of vehicles on hire for the period stood at 1,496, compared with 912 last year.

Cash collections from settled cases during the reporting period stood at £36.628m, compared with £28.230m a year ago.

Executive chairman, Alan Sellers, said: “We are pleased to report another strong set of results, with all key financial metrics and KPIs ahead of the comparative period last year.

“At the time of our AIM IPO in June 2018, we outlined a number of key objectives such as expanding the vehicle fleet, opening a regional office and further legal recruitment and I am delighted to report that a year later we have made excellent progress on these objectives which is reflected in these half year results.

“Anexo remains extremely well positioned to grow its market share and take advantage of the opportunities available to it.

“The board views the current financial year and beyond with considerable optimism.”