Latest Results

Interim Results

“Strong post-lockdown recovery offers new opportunities for growth”

Anexo Group plc (AIM: ANX), the specialist integrated credit hire and legal services provider, is pleased to report Interim Results for the six months ended 30 June 2021 (‘H1 2021’ or the ‘period’). The Board is pleased to report that the Group continued its robust recovery throughout the gradual lifting of the third lockdown. Anexo has continued to invest in its business and the Board is confident in the outcome for FY 2021.


Financial Highlights

 H1 2021 H1 2020 Movement
Revenue £48.3 million £36.6 million +31.9%
Operating profit £10.4 million £7.5 million +38.5%
Profit before tax £8.9 million £6.3 million +40.5%
Net assets £117.8 million £103.9 million +13.3%
Cash collection £56.7 million £48.0 million +18.1%
Basic EPS 6.1 pence 4.5 pence +35.6%
  • Operating profit increased by 38.5 per cent to £10.4 million (H1 2020: £7.5 million) as a result of improved cash collections driving fee income into legal services and increased opportunities within credit hire
  • Net cash inflow from operating activities of £1.5 million (H1 2020: net cash inflow £6.2 million)
  • Overall net cash outflow of £6.8 million (H1 2020: net cash inflow £2.4 million), of which financing activities accounted for £7.0 million of cash outflow (H1 2020: net cash inflow from financing of £3.8 million)
  • Proposed interim dividend of 0.5p per share (H1 2020: 0.5p per share)
  • Net debt balance at 30 June 2021 stood at £44.4 million (30 June 2020: net debt of £27.1 million, 31 December 2020: £40.5 million)
  • The Board expects H2 2021 underlying profit before tax to continue to improve as cash collections grow, the number of cases settled in court increases following the reopening of courts in May 2021 for face-to face-hearings, and vehicle numbers continue to reach record levels

Operational Highlights

  • Anexo continued its strong performance throughout the third lockdown and the subsequent four-stage easing ending in June 2021
  • Vehicle numbers have increased strongly as overall traffic volumes have continued to recover to normal levels
  • The number of Group vehicles on the road currently stands at 2,023 as at 7 September 2021
  • Case settlements continued to rise despite court hearings in H1 2021 being largely held remotely via telephone or video conference
  • Recruitment of high-quality legal staff has continued within the Group’s legal services division
  • The Group is engaged in negotiations with its existing finance providers for an increase in its current debt facilities, which will allow it to take advantage of the opportunities presented in both the credit hire and legal services divisions
KPIsH1 2021 H1 2020 Movement
Number of vehicles on hire at the period end 1,740 1,380 +26.1%
Average number of vehicles on hire for the period 1,461 1,286 +13.6%
Completed vehicle hires 4,081 2,953 +38.2%
Number of hire cases settled 2,924 2,622 +11.5%
Cash collections from settled cases (£’000s) 56,665 47,961 +18.1%
Number of new cases funded 4,208 3,025 +39.1%
Legal staff employed at period end 578 450 +28.4%
Number of senior fee earners at period end 175 137 +27.8%
Average number of senior fee earners 164 134 +22.4%

Commenting on the Interim Results, Alan Sellers, Executive Chairman of Anexo Group plc, said:

“I am pleased to report that the Group has performed robustly during the first half of the year, notwithstanding the considerable challenges posed by the COVID-19 pandemic. Business activity in both our credit hire and legal services divisions have recovered strongly. We continue to put record numbers of vehicles on the road and to maximise cash collections by carefully managing hire periods and increasing the overall number of case settlements.

“The rise in vehicle demand and our continued focus on cash collections provide an excellent opportunity to further implement the Group’s fundamental growth strategy. Our existing finance providers have offered increased facilities, the details of which are currently being finalised. These will allow us to increase the deployment of our fleet and accelerate the number of new cases we take on, while enabling ongoing investment in high quality litigators; thereby ensuring we maintain the relationship between new business and settlement capacity which has been the focus of the Group since listing.

“Following the amicable cessation of exploratory takeover talks, DBAY Advisers Ltd retains a seat on the Board as a major supportive shareholder. We believe that our growth strategy offers the best possible opportunity to create significant value for all our shareholders. We remain committed to our stated dividend policy and we look to the future with confidence.”

Results Conference Call

An analyst conference call will be held at 09:30 BST today, 13 September 2021. Retail investors will also be able to listen to the call but will not be eligible to ask questions. A copy of the Interim Results presentation is available at the Group's website: Please contact Nick Dashwood Brown, Head of Investor Relations, at [email protected] if you would like to join the call.

An audio webcast of the conference call with analysts will be available after 12:00 BST today on the Company’s website:

Executive Chairman’s Statement

 On behalf of the Board, I am pleased to introduce Anexo’s results for the six-month period ended 30 June 2021, a period during which the Group has shown a robust recovery from the restrictions imposed by the COVID pandemic. The increase in traffic levels following the easing of lockdown has led to record numbers of vehicles on the road, while increased case settlements within the legal services division have ensured a significant rise in cash collections.

The continuing demand for vehicles and the ongoing growth in staff levels within legal services combine to provide excellent opportunities for significant growth. The Board has considerable confidence in the prospects for H2 2021 and beyond.

H1 2021 Group Performance

Anexo has delivered a strong performance across all key Group financial metrics and KPIs over the first six months of the year, following a resilient performance during the COVID-19 related lockdowns. Group revenues in H1 2021 increased by 31.9 per cent to £48.3 million (H1 2020: £36.3 million) and profit before tax rose by 40.5 per cent to £8.9 million (H1 2020: £6.3 million).

Credit Hire Division

Demand for vehicles remained strong throughout the lockdown period and continued to increase steadily throughout the various stages of lockdown easing which began on 8 March 2021. The average number of vehicles on the road during H1 2021 reached 1,461 (H1 202: 1,286), a 13.6 per cent increase on the prior year. The rising rate of the recovery in demand is illustrated by the number of vehicles on hire at the period end, which stood at 1,740 as at 30 June 2021, a rise of 26.1 per cent on the same date last year.

This increase led to growth in Credit Hire revenue of 27.1 per cent, rising from £20.7 million in H1 2020 to £26.3 million in H1 2021. Profit before tax in the Credit Hire division rose by 17.0 per cent to £7.97 million in H1 2021 (H1 2020: £6.81 million). Completed vehicle hires rose by 38.2 per cent to 4,081 in H1 2021 (H1 2020: 2,953). This increase has been supported by a number of new protocols with insurance companies and by ongoing investment in technology and staff within the Group’s legal subsidiary, Bond Turner. Consequently, the average hire period in H1 2021 fell by 15.9 per cent to 69 days (H1 2020: 82 days).

The Group’s active hire fleet currently divides into roughly one third cars and commercial vehicles and two thirds motorcycles. Further strategic investment in the fleet is likely to maintain this ratio. We seek to target the most valuable claims for the Group, which has the effect of improving individual claim performance and driving growth in revenues and profitability over and above the number of vehicles on the road.

Legal Services Division

The Group’s longstanding policy is to grow its claim settlement capacity and consequently recruitment has continued throughout the lockdown period, including the opening of the Leeds office in Q1 2021. The number of senior fee earners employed at the end of H1 2021 rose by 27.8 per cent to 175 (H1 2020: 137) and the overall number of legal staff rose from 450 in H1 2020 to 578 in H1 2021, an increase of 28.4 per cent.

This investment has underpinned continued growth in cash collections, which rose 18.1% in H1 2021 to a total of £56.67 million (H1 2020: £47.96 million). Revenues from the Legal Services division, which strongly converts to cash, increased by 38.2 per cent to £22.01 million in H1 2021 (H1 2020: £15.92 million). Profit before taxation rose from £0.84 million in H1 2020 to £2.59 million in H1 2021, an increase of 209 per cent. The Group expects this revenue trend to continue as more of our staff reach maturity from a cash collection and settlement position.

The advocacy team continues to act on behalf of a number of individuals in the pursuit of a claim against Volkswagen AG (“VW”) and its subsidiaries (the “VW Emissions case”). Following a marketing campaign in FY 2020 conducted mainly via social media, the Group announced on 27 April 2021 that it was engaged in approximately 14,356 cases. Given the strong recovery in credit hire demand as the lifting of lockdown accelerated, the Board took the decision to concentrate its working capital on maximising fleet utilisation and corresponding capacity within the Legal Services division. Consequently there has been no marketing spend on the VW Emissions case in H1 2021 and the number of cases remains broadly unchanged. The Group anticipates further developments in the case during H2 2021.


The Board is pleased to propose an interim dividend of 0.5p per share which will paid on 22 October 2021 to those shareholders on the register at the close of business on 24 September 2021. The shares will become ex-dividend on 23 September 2021. The Board intends to maintain its stated dividend policy.

Trading Outlook

Current activity levels indicate a strong second half performance for the Credit Hire division. The number of vehicles on the road is consistently reaching record levels and, as of 7 September 2021, stands at 2,023. The outlook for the Legal Services division is also strongly positive, with case settlements and consequent cash collections set to increase as the courts re-open fully and the backlog of cases diminishes.

The Group’s finance providers have proposed increases in our debt facilities and the Board anticipates that agreements will be concluded shortly. Current market conditions offer significant opportunities and the Board believes that reaffirming its growth strategy will benefit both the Credit Hire and Legal Services divisions and contribute to the creation of value for all our shareholders. The Board looks to the second half of 2021 and beyond with renewed optimism.


Alan Sellers
Executive Chairman
13 September 2021

Consolidated Statement of Comprehensive Income
For the unaudited period ended 30 June 2021

  Unaudited Unaudited Audited
  Half year
Half year
Year ended
  30-Jun-21 30-Jun-20 31-Dec-20
 Note £’000s £’000s £’000s
Revenue 2 48,316 36,625 86,752
Cost of sales  (10,668) (7,560) (18,800)
Gross profit  37,648 29,065 67,952
Depreciation & profit / loss on disposal  (3,809) (3,163) (6,571)
Amortisation  (65) (44) (92)
Administrative expenses  (23,171) (18,044) (42,581)
Operating profit before exceptional items  10,603 7,814 18,708
Share based payment charges  (236) (329) (658)
Non-recurring administrative expenses  - - -
Operating profit  10,367 7,485 18,050
Net financing expense  (1,456) (1,141) (2,562)
Profit before tax  8,911 6,344 15,488
Taxation  (1,810) (1,374) (3,173)
Profit and total comprehensive income for the year attributable to the owners of the company  7,101 4,970 12,315
Earnings per share     
Basic earnings per share (pence) 6.1 4.5 10.8
Diluted earnings per share (pence) 6.0 4.4 10.6

The above results were derived from continuing operations.

Consolidated Statement of Financial Position
Unaudited at 30 June 2021

  Unaudited Unaudited Audited
  30-Jun-21 30-Jun-20 31-Dec-20
Assets Note £’000s £’000s £’000s
Non-current assets     
Property, plant and equipment 3 2,217 1,788 2,187
Right-of-use assets  13,337 9,398 13,081
Intangible assets  238 191 234
Deferred tax assets  112 112 112
  15,904 11,489 15,614
Current assets     
Trade and other receivables 4 160,485 132,266 147,931
Corporation tax receivable  439 - 439
Cash and cash equivalents  1,418 11,211 8,220
  162,342 143,477 156,590
Total assets  178,246 154,966 172,204
Equity and liabilities     
Share capital  58 58 58
Share premium  16,161 16,180 16,161
Share based payment reserve  1,935 1,370 1,699
Retained earnings  99,621 86,334 92,520
Equity attributable to the owners of the Group 117,775 103,942 110,438
Non-current liabilities 5   
Other interest-bearing loans and borrowings  3,029 2,021 3,681
Lease liabilities  7,382 5,576 8,945
Deferred tax liabilities  32 - 32
  10,443 7,597 12,658
Current liabilities 5   
Other interest-bearing loans and borrowings  28,781 26,528 31,294
Lease liabilities  6,619 4,204 4,753
Trade and other payables  9,108 7,726 9,505
Corporation tax liability  5,520 4,969 3,556
  50,028 43,427 49,108
Total liabilities  60,471 51,024 61,766
Total equity and liabilities  178,246 154,966 172,204


Consolidated Statement of Changes in Equity
For the unaudited period ended 30 June 2021

  Share capital Share
Share based payment reserve Retained
  £’000s £’000s £’000s £’000s £’000s
At 1 January 2021  58 16,161 1,699 92,520 110,438
Profit for the period and total comprehensive income - - - 7,101 7,101
Issue of share capital  - - - - -
Share based payment charge  - - 236 - 236
Dividends  - - - - -
At 30 June 2021  58 16,161 1,935 99,621 117,775
At 1 January 2020  55 9,235 1,041 81,365 91,696
Profit for the period and total comprehensive income - - - 4,970 4,970
Issue of share capital  3 6,944 - - 6,947
Share based payment charge  - - 329 - 329
Dividends  - - - - -
At 30 June 2020  58 16,179 1,370 86,335 103,942
Profit for the period and total comprehensive income - -  
7,345 7,345
Share based payments charge  - - 329 - 329
Adjustment - (18) - - (18)
Dividends - - - (1,160) (1,160)
At 31 December 2020  58 16,161 1,699 92,520 110,438


Consolidated Statement of Cash Flows
For the unaudited period ended 30 June 2021

  Unaudited Unaudited  
  Half year
Half year
Year ended
  30-Jun-21 30-Jun-20 31-Dec-20
  £’000s £’000s £’000s
Cash flows from operating activities     
Profit for the year  7,101 4,970 12,315
Adjustments for:     
Depreciation and profit / loss on disposal  3,809 3,163 6,571
Amortisation  65 44 92
Financial expense  1,456 1,141 2,562
Taxation  1,810 1,374 3,173
  14,241 10,692 25,371
Working capital adjustments     
Increase in trade and other receivables  (12,577) (4,611) (20,686)
Increase in trade and other payables  (160) 137 1,588
Cash generated from operations  1,504 6,218 6,273
Interest paid  (1,335) (965) (2,422)
Tax repaid  154 (27) (3,646)
Net cash from operating activities  323 5,226 205
Cash flows from investing activities     
Proceeds from sale of property, plant and equipment  448 476 853
Acquisition of property, plant and equipment (497) (512) (223)
Investment in intangible fixed assets (70) (59) 150
Receipt of directors loan receivable - - 415
Net cash from investing activities  (119) (95) 895
Cash flows from financing activities     
Net proceeds from the issue of
share capital
 - 6,947 6,929
Proceeds from new loans  908 3,324 12,924
Dividends paid  - - (1,160)
Repayment of borrowings  (4,171) (3,170) (6,257)
Lease payments  (3,743) (3,291) (7,586)
Net cash from financing activities  (7,006) 3,810 4,850
Net increase / (decrease) in cash and cash equivalents (6,802) 8,941 5,950
Cash and cash equivalents at 1 January  8,220 2,270 2,270
Cash and cash equivalents at period end  1,418 11,211 8,220



Notes to the Interim Statements
For the unaudited period ended 30 June 2021

The notes are available in the printable pdf of the results. To download it, please click here


Page last updated: 13 September 2021