Anexo eyes further growth in vehicle claims business
Liverpool-based legal claims management business Anexo says business is growing across the board.
However, the half year figures released to the Stock Market this morning show a dip in top live revenues from £77.8m this time last year to £68.7m for the half year to the end of June 2024.
Pre-tax profits also showed a fall from £15.2m to £5.9m for the period, but the company has settled claims of about 12,000 claimants with Volkswagen.
The AIM listed specialist integrated credit hire and legal services provider, which also has offices in Bolton and Leeds, saw credit hire revenues increase by 21.8% to £35.2 million (H1 2023: £28.9 million) reflecting higher vehicle activity in the period.
However, the Legal Services division, best known as Bond Turner, saw revenues reduce by 31.5% to £33.5 million (H1 2023: £48.9 million), because the H1 2023 includes the impact of the agreement reached with VW. The underlying business on a normalised basis grew in H1 2024 compared with H1 2023.
Credit Hire reported a strong improvement in profit before tax, reaching £4.1 million (H1 2023: £2.2 million) an increase of 86.4%, reflecting both increased vehicle activity in the period and continued cost control.
Legal Services profit before tax was £3.3 million (H1 2023: £14.2 million) as the investment in staffing continued (a 10.3% increase in headcount was reported in H1 2024), whilst H1 2023 included the impact of the agreement reached with VW.
Anexo has active claims against manufacturers including Mercedes Benz, Vauxhall, BMW/Mini, Peugeot/Citroen and Renault/Nissan.
By the end of June 2024, the Group had secured claims against Mercedes Benz (where court proceedings have been issued) from approximately 12,000 clients, and a further 25,000 claims against other manufacturers.
The potential settlement of these claims is expected to significantly enhance profitability and cashflows, while importantly reducing net debt, although the timing of any negotiations remains uncertain.
Alan Sellers, Executive Chairman of Anexo Group plc, said: “The Group has demonstrated an improvement in performance in the core business, excluding the impact of VW from H1 2023. This is particularly pleasing with a reported 13% increase in new vehicle claims funded and 10% increase in legal staff, the associated costs being expensed as incurred. The results presented here are testament to the quality and expertise of our people, the diversity of the Group’s activities and our commitment to investment into future growth and opportunities for the business.”
Sellers said he expected continued growth in core business and huge opportunities in class actions and other litigation.
“As reported today, the Group has secured a meaningful increase in headroom across all our principal funding facilities, allowing the board to react to opportunities to drive additional shareholder returns. The Board looks to the second half of 2024 and beyond with optimism.”
