Latest Results
Final Results
“"Continued focus on investment and sustainable growth across all Group divisions"”
Anexo Group plc (AIM: ANX), the specialist integrated credit hire and legal services provider, announces its audited final results for the year ended 31 December 2024 (the 'period' or 'FY2024).
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It should be noted that, as previously reported, the results for the year ended 31 December 2023 ('FY2023') include the contribution from the agreement reached with Volkswagen AG ('VW') in relation to the Emissions Claim. The terms of the agreement (as announced on 5 June 2023) are subject to confidentiality restrictions. The agreement resulted in revenues in FY2023 outside the normal course of historic business, which should be taken into account when comparing the results of FY2023 and FY2024. The underlying business on a normalised basis grew in FY2024 compared with FY2023.
To aid comparison of the FY2024 results with FY2023 we have provided a divisional breakdown in trading performance below.
Financial Highlights
Revenues
- Credit Hire revenues increased by 22.9% to £70.4 million (2023: £57.3 million) reflecting the ongoing diversification of the book
- Legal Services revenues reduced by 16.9% to £71.5 million (2023: £86.0 million), noting the results for FY2023 include the impact of the agreement reached with VW in relation to the Emissions Claim.
- Group revenue reduced by 1.0% to £141.9 million (2023: £143.3 million, which included the impact of the agreement reached with VW in the Emissions Claim).
Profit Before Taxation
- Credit Hire reported a 50.0% improvement in profit before tax, reaching £9.9 million (2023: £6.6 million), reflecting both an increase in, and diversification of, vehicle activity in the period and continued cost control
- Legal Services profit before tax reached £7.6 million (2023: £19.5 million) as the investment in staffing continued (a 9.4% increase in headcount was reported in FY2024), whilst FY2023 included the impact of the agreement reached with VW in the Emissions Claim
- Group profit before tax was reduced by 35.7% to £14.8 million (2023: £23.0 million). This reduction reflects the impact of the agreement reached with VW in the Emissions Claim in 2023, additional costs of £0.7 million associated with the refinancing agreed in 2024 which resulted in a significant increase in the level of headroom within the Group, a decision to make continued investment in staff, marketing costs, IT and infrastructure within Legal Services for the future benefit of the business and the movement in, and diversification of, vehicle activity within the Credit Hire Division
2024 | 2023 | Movement | ||||||||
Revenues 1, 2 | £141.9 million | £143.3 million | -1.0% | |||||||
Profit before taxation 1 | £14.8 million | £23.0 million | -35.7% | |||||||
Cash collections | £169.7 million | £163.5 million | +3.8% | |||||||
Net debt | £81.6 million | £67.9 million | +20.2% | |||||||
Basic EPS 1 | 9.9 pence | 12.8 pence | -22.7% | |||||||
- The results for FY2023 include the impact of the agreement reached with VW in the Emissions Claim
- Note: Certain of the results and balances for FY2023 have been restated, this had the impact of reducing opening reserves by £2.3 million, but had no impact on the Statement of Total Comprehensive Income or Statement of Cash Flows for FY2023. Further details are included in Note 1 below.
KPIs | 2024 | 2023 | % movement |
Group |
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Total revenues (£'000s) 1 2 | 141,878 | 143,308 | -1.0% |
Gross profit (£'000s) 1 2 | 103,437 | 114,962 | -10.0% |
Operating profit (£000's) | 25,469 | 39,773 | -36.0% |
Operating profit margin (%) 2 | 18.0% | 27.8% | -9.8% |
Cash collections from settled cases (£'000s) | 169,720 | 163,530 | +3.8% |
Credit Hire | |||
Revenues (£'000s) 2 | 70,393 | 57,289 | +22.9% |
Vehicles on hire at the year-end (no) | 1,552 | 2,409 | -35.6% |
Average vehicles on hire for the year (no) | 1,877 | 1,904 | -1.4% |
Number of hire cases settled | 8,767 | 8,967 | -2.2% |
New cases funded (no) | 11,857 | 11,724 | +1.1% |
Legal Services | |||
Revenues (£'000s) 1 2 | 71,485 | 86,019 | -16.9% |
Legal staff at the period end (no) | 768 | 702 | +9.4% |
Average number of legal staff (no) | 758 | 696 | +8.9% |
Total senior fee earners at period end (no) | 303 | 283 | +7.1% |
Average senior fee earners (no) | 294 | 257 | +14.4% |
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Overview and Financial and Operational KPIs
2024 has been a year of targeted investment in a number of strategic areas. This has focused on driving increased performance and shareholder value by continuing the development of Bond Turner's staff and infrastructure across all key divisions, including Housing Disrepair, Large Loss (Injury), class actions (which includes emissions) and credit hire. Whilst credit hire remains the most significant component of the Group, our internal focus has changed slightly to look to drive additional value from the division; firstly, from the generation of additional large loss opportunities, for which there are no significant incremental costs; and secondly, from diversification of the claim portfolio within credit hire.
It should be noted that, as previously reported, the results for 2023 include the contribution from the agreement reached with Volkswagen AG ('VW') in relation to the Emissions Claim. The terms of the agreement (as announced on 5 June 2023), which was subject to confidentiality restrictions, noted that the agreement had resulted in a net positive cash position to Anexo of £7.2 million and revenues in that year being outside the normal course of historic business. The claim should therefore be taken into account when comparing 2023 and 2024. The underlying Legal Services business on a like-for-like basis grew in 2024 compared with 2023. It should also be noted that certain comparative information has been re-stated as a result of the prior year adjustment set out in Note 1 to the financial information.
The Group's success lies in the strength of Bond Turner and is supported by ongoing investment in staff, and diversification of the credit hire book alongside expanding revenues from its two other key divisions, targeting growth but not at the expense of increasing levels of working capital and debt. Cash collections improved throughout the year, deriving from credit hire claims, housing disrepair claims and the serious injury and clinical and professional negligence large loss teams. Overall cash collections increased from £163.5 million in 2023 to £169.7 million in 2024. These figures exclude the contribution from the agreement reached in June 2023 with VW referred to above.
Revenues for Legal Services reduced from £86.0 million in 2023 to £71.5 million in 2024; these figures reflect the fact that 2023 included the impact of the agreement of the Emission Claim in the year. On a like-for-like basis, 2024's revenues were above those reported for 2023. This improvement is even more pleasing as the business continued to face disruption in the courts system post-COVID, with delays and adjournments to court dates and hearings, which have impacted turnover and hence profitability. The delays in the Civil Court system are well publicised and are currently subject to a review by the Justice Committee. The Company is playing an active and collaborative role in that review with a Director having already given evidence before the committee.
Following the agreement with VW, the Group continued its investment in claims against other manufacturers, including Mercedes Benz, Vauxhall, BMW/ Mini, Peugeot/Citroen and Nissan/Renault. During 2024, the Group invested a total of £6.5 million in marketing, staff and other costs (2023: £4.3 million) and at the end of 2024 had secured claims against Mercedes Benz (where court proceedings have been issued) from approximately 12,000 clients, and a further 24,000 claims against other manufacturers. These costs which are included within Administrative Expenses in the Income Statement, contribute significantly to the development and ultimate success of the claims. New claim acquisition and marketing has now ceased. Favourable settlement of these claims would be expected to enhance the Company's revenue, profitability and cashflows although the certainty, quantum and timing of any negotiations or settlement remains uncertain.
Staff numbers within Bond Turner continued to grow, driving improvements in performance and cash collections with an increased focus on both developing our own staff but recruiting where necessary to increase settlement capacity. This growth was particularly notable within the housing disrepair and large injury teams, where staff numbers increased from 69 and 77 respectively at the end of 2023 to 84 and 100 at the end of 2024 (an increase of 21.7% and 29.9% respectively). Staff numbers in the Legal Services division reached a total of 768 at the end of December 2024, a 9.4% rise from 2023.
In addition, the business continues to increase its footprint within the field of professional and clinical negligence and large and catastrophic personal injury case book. A new head of clinical negligence has recently been recruited, and the Group is delighted to have attracted a highly experienced, commercially minded and sought after individual which bodes well for future success. Further recruitment of senior people continues to take place across the large and personal injury departments. The Group is able to draw upon its significant marketing capability and nationwide footprint to generate claims effectively.
Opportunities for new work within the Credit Hire division continued to be buoyant. Management continued the active management of claims and sought to diversify the business, expanding the provision of vehicles on a credit hire basis to taxi drivers who had been involved in non-fault accidents. The Group, with its decades of experience, has given careful and strategic consideration to the diversification of its offering between cars, motorbikes, vans, taxis and bicycles, concentrating on those claims that generate the best value for the Group as a whole, alongside ensuring that the demands and needs of its clients are satisfied. This diversification led to overall vehicle numbers being reduced from 2,409 at the end of 2023 to 1,772 at the end of June 2024 and 1,552 at the end of 2024. This reduction in 2024 is expected to have a positive impact on settlements in 2025 and beyond. The readjustment is intended to position the business well for future opportunities within each sector. The diversification is also expected and indeed has already started to open avenues for high value personal injury work where there is no associated credit hire.
Having diversified the book of business and actively managed claim numbers during the year, the strong start to 2024 in terms of vehicle activity resulted in an increase in revenues in the year, rising from £57.3 million in 2023 to £70.4 million in 2024. The focus for the majority of the year was very much on cash generation and our ability to manage claim volumes underlines the robust health of the core business. A number of factors contributed to the increase in revenue including the diversification of the credit hire book. As for many years, all claims generated are passed for recovery to the experienced legal team at Bond Turner, who have shown their strength in driving case settlements in a period where court delays and adjournment are now the norm; the impact of these external factors has seen little improvement during 2024.
2024 also saw the Group replace, or agree enhancements to, its key funding facilities. In August 2024, the Group agreed a £30.0 million, three year committed, loan facility with Callodine Commercial Finance LLC. The Group has drawn down £20.0 million of this facility, to provide further headroom and to repay the loan provided by Blazehill Capital Limited. This refinancing has significantly reduced the overall cost of capital to the Group, as has an agreement to increase the funding available under the facility provided by Secure Trust Bank PLC. Secure Trust has extended and increased the funding period, the effect of which was to provide an additional £5.0 million of funding for the Group within the £40.0 million facility limit previously agreed. Both facilities are committed through to July 2027.
In October 2024, the Group secured a £16.0 million revolving credit facility from Lloyds Bank PLC, of which £13.5 million has been drawn down to increase headroom and repay the facility formerly provided by HSBC Bank PLC (£10.0 million). This facility is also committed for a three year period with no repayments due until that date.
The Group has a number of opportunities for growth in 2025, not only from the current divisions but from wider opportunities in the legal services sector including the growth of higher value personal injury work and continued diversification of the credit hire book. The Board believes that there are significant opportunities to manage the overall Group to ensure it maximises shareholder value by continuing to seize opportunities for growth as they present themselves without the need for significant increases in debt funding. We have provided certain data and statistics below and on the following pages to give further detail around the trading and operational performance of the Group. The measures presented are those which management believes provide the best reflection of performance.
Commenting on the Final Results, Alan Sellers, Executive Chairman of Anexo Group plc, said: "The Board is very pleased with these results, which demonstrate our continued commitment to sustainable investment across our divisions, enabling appropriate growth while managing our debt levels efficiently.
We are immensely proud to be able to offer social justice and full legal support to our clients and members of the public. Anexo provides assistance to people who find themselves in an invidious position through no fault of their own, whether through being deprived of an essential vehicle or through living in substandard housing conditions, along with the other problems which may be exacerbated by such situations. We remain committed to providing help to those who might otherwise be unable to obtain redress. The credit hire and housing disrepair teams continue to perform with both strength and a high level of legal expertise, and carry out invaluable work for members of the public in difficult situations, who would not otherwise have access to justice.
"The Group has multiple opportunities in its existing business in areas which offer huge potential for growth. Our legal services division is involved in a number of high-profile actions which will heighten its public profile and reputation for expertise, while the credit hire division is benefitting from our recent expansion into the taxi sector. The future for the Group is both exciting and promising."
Chairman's Statement
On behalf of the Board, I am pleased to report a year of solid performance by the Group, with each division of the Group performing in line with the Board’s expectations. As previously reported, the results for 2023 include the contribution from the agreement reached with Volkswagen AG (‘VW’) in relation to the Emissions Claim. The terms of the agreement (as announced on 5 June 2023) are subject to confidentiality restrictions. The agreement resulted in revenues in 2023 outside the normal course of historic business, which should be taken into account when comparing 2023 and 2024. The underlying Legal Services business on a like-for-like basis grew in 2024 compared with 2023.
The Board continues to invest in diversifying the Group’s activities by taking advantage of the significant growth opportunities which are presenting themselves and believes that the Group is well positioned for further strong performance in 2025 and beyond. During 2024, investment included the continued diversification of credit hire activity into the provision of taxis to drivers involved in non-fault accidents as well as investment to increase its footprint within large and catastrophic personal injury case books and professional and clinical negligence. The Group continues to market its services to prospective customers on a nationwide basis and offers an accessible network to members of the public who require end-to-end solutions for legal advice and support.
Group Performance
Anexo Group Plc has shown solid performance during 2024 with Group revenues reported at £141.9 million (2023: £143.3 million, which included the impact of the agreement in the Emissions Claim). The underlying business on a like-for-like basis grew in 2024 compared with 2023. Gross profits reached £103.4 million in 2024 compared to £115.0 million in 2023. Operating profit reduced to £25.5 million in 2024 at a margin of 18.0% (2023: £39.8 million at a margin of 27.8%), the reduction reflecting the impact of the Emissions Claim in 2023, the continued investment in staff and marketing costs across all aspects of the Legal Services division, and continued investment into the ongoing diesel emissions claims (2024: £6.5 million; 2023: £4.3 million) and costs associated with securing additional headroom for the Group across each of the principal debt funding facilities.
An increase in revenue was reported for Credit Hire, increasing from £57.3 million in 2023 to £70.4 million in 2024. This improvement reflects the diversification of claims activity towards claims generating best value for the Group and servicing the needs of a diverse client base. This result was even more pleasing as management continued the active management of claims accepted resulting in a reduction of vehicles on the road at the year end (2023: 2,409; 2024: 1,552). Revenue from Legal Services reduced from £86.0 million in 2023 to £71.5 million in 2024. As previously stated, 2023 included the impact of the agreement in the Emissions Claim and the underlying business on a normalised basis grew in 2024 compared with 2023.
During 2024, the Group has continued its focus on developing services outside credit hire, further developing the housing disrepair and large loss teams whilst recognising that credit hire remains the mainstream profit generator for the Group. This focus has contributed to an increased level of case settlements and therefore an increase in cash collections for the Group, which rose by 3.8% to £169.7 million in 2024 (2023: £163.5 million). This figure excludes the agreement in the Emissions Claim in 2023. This improvement is even more pleasing as the business continued to face disruption in the courts system post-COVID with delays and adjournments to court dates and hearings, which have impacted turnover and hence profitability. The delays in the Civil Court system are well publicised and are currently subject to a review by the Justice Committee. The Company is playing an active and collaborative role in that review with a Director having already given evidence before the committee.
Credit Hire Division
Whilst the Group’s Credit Hire division, Direct Accident Management Limited, reported a slight increase in vehicle activity in the year against 2023, new cases funded increased slightly from 11,724 in 2023 to 11,857 in 2023, revenues increased from £57.3 million to £70.4 million (an increase of 22.9%). The growth in revenues, over and above the movement in vehicle activity, reflects the decision to diversify the fleet towards those claims generating best future value for the Group.
With the strong start to the year, which began with 2,409 vehicles on the road, active management of claims activity resulted in a reduction of vehicles on the road, ending the year at 1,552. Movements in the year resulted in the average number of vehicles on hire remaining relatively consistent with that seen in 2023, reaching 1,877 in 2024 (2023: 1,904).
Legal Services Division
The Group’s Legal Services division, has continued its focus on both driving cash collections across each of the three principal departments, with growth in both housing disrepair and large loss contributing to the positive result in the year, as well as continued investment in staffing and infrastructure. Large loss remains a key focus for the business including our ability to provide rehabilitation, support, legal advice and technical excellence to the most seriously injured of clients.
This investment is expected to make a significant contribution to future revenues and profitability. Revenues within the Legal Services division, which strongly correlates to cash, reduced by 16.9% to £71.5 million (2023: £86.0 million, including the agreement in the Emissions Claim in June 2023). The underlying business on a normalised basis grew in 2024 compared with 2023.
With increased opportunities across all divisions the Group has sought to expand teams with strategic senior hires to support and develop their respective teams to help drive case settlements. At the end of December 2024 staff numbers within Bond Turner stood at 768, a 9.4% increase on the 2023 figure of 702. Of these, a total of 303 were senior fee earners, up 7.1% (2023: 283). The average number of staff rose from 696 in 2023 (of which 257 were senior fee earners) to 758 in 2023 (including 294 senior fee earners).
Diesel Emissions
The Group has continued its investment in claims against manufacturers including Mercedes Benz, Vauxhall, BMW/Mini, Peugeot/Citroen and Renault/Nissan. By the end of 2024, the Group had secured claims against Mercedes Benz (where court proceedings have been issued) from approximately 12,000 clients, and a further 22,000 claims against other manufacturers. New claim acquisition and marketing has now ceased. Favourable settlement of these claims would be expected to enhance the Company’s revenue, profitability and cashflows although the certainty, quantum and timing of any negotiations or settlement remains uncertain.
In total, the Group invested £6.5 million in 2024 (2023: £4.3 million) in both staffing and emission claims lead generation fees, both of which are expensed in the income statement as incurred.
Housing Disrepair
The housing disrepair team has continued its expansion during 2024, with revenues rising to £14.2 million, an increase of 11.8% over that reported in 2023 (£12.7 million). At the end of the year, the Group had a portfolio of c4,500 ongoing claims (2023: c.3,900). Some £3.5 million was invested in marketing costs in 2024 (2023: £3.8 million), all of which was expensed as incurred, and with further investment planned in 2025, the housing disrepair team has proven its potential to be a significant contributor to Group earnings. We look forward to further growth in this sector.
The Board is not recommending the payment of a final dividend (2023: total dividend 1.5p per share, £1.8 million).
Corporate Governance
Anexo values corporate governance highly and the Board believes that effective corporate governance is integral to the delivery of the Group’s corporate strategy, the generation of shareholder value and the safeguarding of our shareholders’ long-term interests.
As Chairman, I am responsible for the leadership of the Board and for ensuring its effectiveness in all aspects of its role. The Board is responsible for the Group’s strategic development, monitoring and achievement of its business objectives, oversight of risk and maintaining a system of effective corporate governance. I will continue to draw upon my experience to help ensure that the Board delivers maximum shareholder value.
Our Employees and Stakeholders
The strong performance of the Group reflects the dedication and quality of the Group’s employees. We rely on the skills, experience and commitment of our team to drive the business forward. Their enthusiasm, innovation and performance remain key assets of the Group and are vital to its future success. On behalf of the Board, I would like to thank all of our employees, clients, suppliers, business partners and shareholders for their continued support over the last year.
Current Trading and Outlook
The Group has continued to invest in its people, particularly within the Legal Services division, supporting the growth in the underlying level of cash receipts for the Group. Whilst this investment impacted our reported financial performance in 2024, the continued growth in headcount supporting ever increasing case settlements will continue to contribute to growth in 2025 and beyond.
Since the year end, trading across both Credit Hire and Legal Services has been in line with management’s expectations.
Judgment was handed down in November 2024 from the preliminary issue trial held in early October 2024, in the Mercedes Diesel Emissions Claim. The Court found in favour of the claimants and whilst this decision is not definitive for the success of the claims, it does strengthen the claimants' position and was a significant victory in the litigation at that stage. A trial is scheduled for October 2026 to address causation and loss issues. This trial will involve all manufacturers.
Annual General Meeting
The Group’s AGM will be held on 2 July 2025. The notice of the meeting accompanies this Annual Report and Accounts.
Financial Review
Basis of Preparation
To provide comparability across reporting periods, the results within this Financial Review are presented on an “adjusted basis”, adjusting for the £0.2 million charge recorded for share-based payments in 2024, with no such charge arising in 2023. It should also be noted that certain comparative information has been re-stated as a result of the prior year adjustment set out in Note 1 below.
A reconciliation between adjusted and reported results is provided at the end of this Financial Review.
Revenue
In 2024 Anexo reported revenues of £141.9 million, a reduction of 1.0% over the prior year (2023: £143.3 million). As previously stated, 2023 was impacted by the agreement reached in the Emissions Claim, the underlying business on a normalised basis grew in 2024 compared with 2023.
Revenues for Credit Hire increased from £57.3 million in 2023 to £70.4 million in 2024 reflecting the impact of a diversification of the credit hire book. During 2024, Direct Accident Management Limited, the Credit Hire division, provided vehicles to 11,857 individuals (2023: 11,724).
Within Legal Services, revenues reduced from £86.0 million in 2023 to £71.5 million, reflecting the fact that 2023 included revenues from the agreement reached in the Emissions Claim; the underlying business on a like for like basis grew in 2024. This improvement is even more pleasing as the business continued to face disruption in the courts system post-COVID with delays and adjournments to court dates and hearings, which have impacted turnover and hence profitability.
With investment in all areas of Bond Turner continuing into 2024, and the continued maturity of the housing disrepair and large loss departments, the Legal Services division reported revenue growth when excluding the impact of the Emissions Claim from the 2023 result, details of which are subject to confidentiality restrictions.
Gross Profits
Gross profits for the Group are reported at £103.4 million (at a margin of 72.9%) in 2024, reducing from £115.0 million in 2023 (at a margin of 80.2%). The result for 2023 included the impact within Bond Turner of the agreement of the Emissions Claim. It should be noted that staffing costs within Bond Turner are reported within Administrative Expenses.
The Credit Hire Division reported gross profits of £36.3 million (at a margin of 51.6%), increasing from £30.3 million (at a margin of 53.8%), this movement being revenue related.
Operating Costs
Administrative expenses increased slightly year-on-year, reaching £69.0 million in 2024 (2023: £65.7 million). Staffing costs for Bond Turner increased to £30.5 million (2023: £25.7 million), an increase of £4.8 million (15.7%); this increase was countered by savings in marketing and other general overhead costs. Following the establishment of our housing disrepair team in late 2020, some £3.5 million was invested in marketing costs in 2024 (2023: £3.8 million), all of which has been expensed as incurred.
Depreciation, amortisation and profit and loss on disposal totalled £8.8 million in 2024, a slight reduction from that seen in 2023 (£9.5 million).
Finance Costs
Finance costs reached £10.7 million in 2024, reducing from £16.7 million in 2023. 2024 included certain costs associated with the refinancing of each of the major funding facilities of the Group (£0.7 million), the result of which was to extend all facilities into 2027, improve headroom and reduce the overall cost of capital to the Group. Finance costs in 2023 included payment due to funders in respect of Emissions Claims.
Profit Before Tax
Profit before tax reached £14.8 million in 2024, falling from the level reported in 2023 (£23.0 million). 2023 including the impact arising from the agreement in the Emissions Claim.
Where we have provided adjusted figures, they are after the add-back of the share-based payment charge in 2024; a reconciliation of the adjusted and reported results is included below. Adjusted profit before tax reached £15.0 million in 2024, falling from the level reported in 2023 (£23.0 million) which included the impact arising from the agreement in the Emissions Claim.
EPS and Dividend
Statutory basic EPS is 9.9 pence (2023: 12.8 pence). Statutory diluted EPS is 9.9 pence (2023: 12.8 pence). The adjusted EPS is 10.0 pence (2023: 12.8 pence). The adjusted diluted EPS is 10.0 pence (2023: 12.8 pence). The adjusted figures exclude the effect of share-based payments. The detailed calculation in support of the EPS data provided above is included below.
The Board is not recommending the payment of a final dividend (2023: total dividend 1.5p per share, £1.8 million).
Group Statement of Financial Position
The Group’s net assets position is dominated by the balances held within trade and other receivables. These balances include credit hire and credit repair receivables, together with disbursements paid in advance which support the portfolio of ongoing claims. Following improvements in the level of cash collected in the year, countered by increases in claim volumes and the value of individual claims generated, the carrying claim value of trade receivables and assets on the credit hire ledger totalled £173.6 million in 2024, increasing from £159.5 million in 2023. In accordance with our income recognition policies, a provision is made to reduce the carrying value to amounts that are expected to be settled giving a portfolio of claims for settlement into 2025 and beyond for which the associated acceptance costs have been written off as incurred.
In addition, the Group has a total of £76.3 million reported as accrued income (2023: £70.1 million) which represents the value attributed to those ongoing hires and claims at the year end, alongside growth in the number of ongoing claims within the housing disrepair and large loss teams where investment has increased year on year as have the ongoing number of claims, noting value is only attributed to those claims where we have secured an admission of liability.
The diversification of the credit hire book in 2024 reduced the reliance on motorcycle claims and hence the requirement for additional capital expenditure that would have ordinarily been required; total additions of property, plant, equipment and right of use assets reached £10.6 million in 2024 (2023: £11.6 million). The fleet continues to be largely externally financed.
Trade and other payables, including tax and social security increased to £16.1 million at 31 December 2024 compared to £14.5 million at 31 December 2023. The provision for costs that may be payable under an indemnity contract at 31 December 2024 was £3.6 million (2023: £3.2 million).
Net assets at 31 December 2024 reached £167.5 million (2023: £157.4 million).
Net Debt, Cash and Financing
Following a year of investment, net debt increased to £81.6 million at 31 December 2024 (31 December 2023: £67.9 million) and comprised cash balances at 31 December 2024 of £11.3 million (2023: £8.4 million), plus borrowings which increased during the year, the movement being in line with management’s expectations and following the refinance of each of the Group’s primary funding facilities in the year.
The total debt balance reached £92.9 million in 2024, increasing from £76.4 million at the end of 2023; these balances include lease liabilities including those recognised in line with IFRS16 (2024: £14.9 million; 2023: £14.3 million). The Group has a number of funding relationships and facilities to support its working capital and investment requirements, including an invoice discounting facility within Direct Accident Management Limited (secured on the credit hire and repair receivables) and a loan from Callodine Commercial Finance LLC, which is non amortising and committed for a three year period through to August 2027, lease facilities to support the acquisition of the fleet and a revolving credit facility within Bond Turner Limited which is due for renewal in October 2027. Further details are included below.
Having considered the Group’s current trading performance, cash flows and headroom within our current debt facilities, maturity of those facilities, the Directors have concluded that it is appropriate to prepare the Group and the Company’s financial statements on a going concern basis. Further details are included below.
Cash Flow
Notwithstanding the continued delays in the court system, we have continued to invest in talent and grow our settlement capacity throughout Bond Turner, across each of the Credit Hire, housing disrepair and more recently the large loss teams. As we have previously reported, increasing numbers of senior fee earners drives increased settlement and cash collections as it is mainly these staff that negotiate and settle claims on behalf of the Group. The number of senior fee earners increased from 283 to 303 during 2024 (an increase of 7%) with strategic recruitment of high-quality staff a continued focus. More recently, this investment has sought to continue to diversify the activities of the Group and headcount with the housing disrepair team, where the number of staff increased in number from 69 at 31 December 2023 to 84 at 31 December 2024 (an increase of 21.7%); and the large loss team, where the number of staff increased in number from 77 at 31 December 2023 to 100 at 31 December 2024 (an increase of 29.9%).
Cash collections for the Group (excluding settlements for our clients and the contribution from the agreement of the Emissions Claim in 2023), a key metric for the Group, increased from £163.5 million in 2023 to £169.7 million in 2024, an increase of 3.8%.
These improvements, countered by an investment in a record number of new claims, resulted in a net cash outflow from operating activities of £4.9 million in 2024 (2023: net cash inflow: £17.4 million), the primary difference being the level of funds invested in trade and other receivables which increased to an investment of £21.3 million in 2024 (2023: cash outflow: £12.1 million) reflecting the growth in claim numbers in the year as well as the increase in average value as we have diversified the book to the most valuable claims for the Group where there is plentiful need and demand. It should also be noted that 2023 was impacted by the agreement reached in the Emissions Claim.
The refinancing of the three primary facilities of the Group, providing investment capital and additional headroom to the Group resulted in net debt reaching £81.6 million at 31 December 2024 (31 December 2023: £67.9 million).
Reconciliation of Adjusted and Reported IFRS Results
In establishing the adjusted operating profit, the adjusted results for 2024 include a charge of £0.2 million related to share-based payments awards made in the current year which will vest in future periods.
A reconciliation between adjusted and reported results is provided below:
| Year to 31 December 2024 | ||||
| Adjusted £’000s | Share-based payment £’000s | Reported £’000s | ||
| Revenue | 141,878 | - | 141,878 | |
| Gross profit | 103,437 | - | 103,437 | |
| Other operating costs (net) | (77,792) | (176) | (77,968) | |
| Operating profit | 25,645 | (176) | 25,469 | |
| Finance costs (net) | (10,676) | - | (10,676) | |
| Profit before tax | 14,969 | (176) | 14,793 | |
| Profit after tax | 11,875 | (176) | 11,699 | |
| Year to 31 December 2023 (Restated) | ||||
| Adjusted £’000s | Share-based payment £’000s | Reported £’000s | ||
| Revenue | 143,308 | - | 143,308 | |
| Gross profit | 114,962 | - | 114,962 | |
| Other operating costs (net) | (75,189) | - | (75,189) | |
| Operating profit | 39,773 | - | 39,773 | |
| Finance costs (net) | (16,733) | - | (16,733) | |
| Profit before tax | 23,040 | - | 23,040 | |
| Profit after tax | 15,121 | - | 15,121 | |
Consolidated Statement of Total Comprehensive Income
for year ended 31 December 2024
| 2024 | Restated 2023 | |||
| Note | £’000s | £’000s | ||
| Revenue | 141,878 | 143,308 | ||
| Insurance service cost | (1,569) | (1,098) | ||
| Other cost of sales | (36,872) | (27,248) | ||
| Total cost of sales | (38,441) | (28,346) | ||
| Gross profit | 103,437 | 114,962 | ||
| Depreciation & profit / loss on disposal of property, plant and equipment | 4 | (8,727) | (9,439) | |
| Amortisation | 4 | (57) | (69) | |
| Share based payment charge | (176) | - | ||
| Increase in provision for impairment of trade receivables | (311) | (1,079) | ||
| Other administrative expenses | (68,697) | (64,602) | ||
| Total administrative expenses | (77,968) | (75,189) | ||
| Operating profit | 4 | 25,469 | 39,773 | |
| Finance costs | (10,676) | (16,733) | ||
| Profit before tax | 14,793 | 23,040 | ||
| Taxation | (3,094) | (7,919) | ||
| Profit and total comprehensive income for the year attributable to the owners of the company | 11,699 | 15,121 | ||
| Earnings per share | ||||
| Basic earnings per share (pence) | 5 | 9.9 | 12.8 | |
| Diluted earnings per share (pence) | 5 | 9.9 | 12.8 | |
The above results were derived from continuing operations.
Consolidated Statement of Financial Position
as at 31 December 2024
| 2024 | Restated 2023 | |||
| Assets | Note | £’000s | £’000s | |
| Non-current assets | ||||
| Property, plant and equipment | 6 | 1,378 | 1,813 | |
| Right of use assets | 6 | 14,152 | 13,886 | |
| Intangible assets | 312 | 34 | ||
| Deferred tax assets | 112 | 112 | ||
| 15,954 | 15,845 | |||
| Current assets | ||||
| Trade and other receivables | 7 | 255,670 | 234,409 | |
| Cash and cash equivalents | 11,274 | 8,443 | ||
| 266,944 | 242,852 | |||
| Total assets | 282,898 | 258,697 | ||
| Equity and liabilities | ||||
| Equity | ||||
| Share capital | 59 | 59 | ||
| Share premium | 16,161 | 16,161 | ||
| Share based payments reserve | 176 | - | ||
| Retained earnings | 151,085 | 141,156 | ||
| Equity attributable to the owners of the Company | 167,481 | 157,376 | ||
| Non-current liabilities | ||||
| Other interest-bearing loans and borrowings | 8 | 32,089 | 15,000 | |
| Lease liabilities | 8 | 7,552 | 7,968 | |
| Insurance contract liability | 9 | 2,684 | 2,456 | |
| Deferred tax liabilities | - | 32 | ||
| 42,325 | 25,456 | |||
| Current liabilities | ||||
| Other interest-bearing loans and borrowings | 8 | 45,894 | 47,070 | |
| Lease liabilities | 8 | 7,382 | 6,347 | |
| Insurance contract liability | 9 | 893 | 766 | |
| Trade and other payables | 16,065 | 14,457 | ||
| Corporation tax liability | 2,858 | 7,225 | ||
| 73,092 | 75,865 | |||
| Total liabilities | 115,417 | 101,321 | ||
| Total equity and liabilities | 282,898 | 258,697 | ||
Consolidated Statement of Changes in Equity
for the year ended 31 December 2024
| Share Capital | Share Premium | Share Based Payments Reserve | Retained Earnings | Total | |
| £’000s | £’000s | £’000s | £’000s | £’000s | |
| At 1 January 2023 | 59 | 16,161 | - | 130,127 | 146,347 |
| Prior period adjustment (note 1) | - | - | - | (2,323) | (2,323) |
| At 1 January 2023 (restated) | 59 | 16,161 | - | 127,804 | 144,024 |
| Profit for the year and total comprehensive income | - | - | - | 15,121 | 15,121 |
| Dividends | - | - | - | (1,769) | (1,769) |
| At 31 December 2023 (restated) | 59 | 16,161 | - | 141,156 | 157,376 |
| Profit for the year and total comprehensive income | - | - | - | 11,699 | 11,699 |
| Share based payment charge | - | - | 176 | - | 176 |
| Dividends | - | - | - | (1,770) | (1,770) |
| At 31 December 2024 | 59 | 16,161 | 176 | 151,085 | 167,481 |
Consolidated Statement of Cash Flows
for the year ended 31 December 2024
| 2024 |
2023 | ||||||||
| Note | £’000s | £’000s | |||||||
| Cash flows from operating activities | |||||||||
| Profit for the year | 11,699 | 15,121 | |||||||
| Adjustments for: | |||||||||
| Depreciation and profit / loss on disposal | 4,6 | 8,727 | 9,439 | ||||||
| Amortisation | 57 | 69 | |||||||
| Finance cost | 10,676 | 16,733 | |||||||
| Share based payment charge | 176 | - | |||||||
| Taxation | 3,094 | 7,919 | |||||||
| 34,429 | 49,281 | ||||||||
| Working capital adjustments | |||||||||
| Increase in trade and other receivables | (21,260) | (12,138) | |||||||
| Increase in trade and other payables | 1,963 | 1,586 | |||||||
| Cash generated from operations | 15,132 | 38,729 | |||||||
| Finance costs paid | (12,571) | (16,733) | |||||||
| Tax paid | (7,493) | (4,605) | |||||||
| Net cash (used in) / from operating activities | (4,932) | 17,391 | |||||||
| Cash flows from investing activities | |||||||||
| Proceeds from sale of property, plant and equipment | 2,038 | 757 | |||||||
| Acquisition of property, plant and equipment | (586) | (1,277) | |||||||
| Investment in intangible fixed assets | (335) | (32) | |||||||
| Net cash from / (used in) investing activities | 1,117 | (552) | |||||||
| Cash flows from financing activities | |||||||||
| Proceeds from new loans | 60,937 | 20,409 | |||||||
| Repayment of borrowings | (43,128) | (26,932) | |||||||
| Capital element of lease payments | (9,393) | (9,153) | |||||||
| Dividends paid | (1,770) | (1,769) | |||||||
| Net cash generated from / (used in) financing activities | 6,646 | (17,445) | |||||||
| Net increase / (decrease) in cash and cash equivalents | 2,831 | (606) | |||||||
| Cash and cash equivalents at 1 January | 8,443 | 9,049 | |||||||
| Cash and cash equivalents at 31 December | 11,274 | 8,443 | |||||||
Page last updated: 6 June 2025