12 September 2018
Anexo Group plc (AIM: ANX), the specialist integrated credit hire and legal services provider, is pleased to report its maiden set of interim results for the six months ended 30 June 2018 ('H1 2018'). The Board is pleased to report a successful first six months of the financial year with management confident in meeting the Board's expectations for the full year.
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As noted in the Group's admission document, the management took a decision in 2017 to focus on motorcycle claims and settling existing claims in progress rather than new claims generation. This resulted in reduced activity during the six months ended December 2017 ('H2 2017') and into H1 2018. As a result, the first six months trading of 2018 is behind the strong first half of 2017.
This strategy was reversed in late 2017 following the decision to raise funds on public markets. The number of sales representatives and vehicles on hire have increased during the period resulting in an increased number of claims which is expected to impact positively on future periods. Growth in the number of vehicles on fleet and on hire has continued into the current period with vehicles on hire reaching 1,241 as at 31 August 2018. The funds raised at IPO have underpinned this expansion.
- Increased the vehicle fleet to 2,293 at 30 June 2018 (H1 2017: 1,568)
- Vehicles on hire increased by 27% to 1,240 at 30 June 2018 (H1 2017: 974)
- Maintained utilisation rates around target, reaching 82% at 30 June 2018 (H1 2017: 80%)
- Focused on settlement rates which are currently trending upwards
- Staff employed at Bond Turner increased by 29% to 215 at 30 June 2018 (H1 2017: 167)
- Successful recruitment for the new Bolton office which has widened the recruitment pool and injected the experience and skill of 12 highly experienced, industry renowned litigators (an increase of 27%) to increase settlements, and add to existing skill sets within the firm
- Number of new cases funded increased 12% to 2,588 (H1 2017: 2,306)
- Turnover reached £23.5 million in H1 2018 (H1 2017: £22.9 million), representing growth of 2.6% over the prior period and 6.9% above that reported in H2 2017 (£21.9 million)
- Adjusted profit before taxation reached £6.8 million in H1 2018 (H1 2017: £8.5 million). This represents an 11.6% increase in adjusted profit before taxation over that reported for H2 2017 (£6.1 million)
- Adjusted EPS at 5.4 pence for H1 2018 (H1 2017: 6.4 pence)
- At June 2018 the Group had net cash balances of £6.0 million (June 2017: Net cash balance of (£6.9 million)).
* Adjusted results exclude certain expenses incurred as part of the flotation
Commenting on the Interim Results, Alan Sellers, Executive Chairman of Anexo Group plc, said:
"Following our successful Admission to AIM in June this year, we are pleased to report that Anexo has continued to make positive operational and financial progress. With the funds raised at IPO now underpinning our expansion, we continue to grow our credit hire division through the investment in fleet, quality staff and systems. This has allowed us to secure the quality business which predicates our high recovery rates.
"As outlined at IPO, the Group is simultaneously focused on the expansion of its legal services business so as to allow the credit hire business to grow whilst improving cash generation levels. It is pleasing to see that Anexo has swiftly demonstrated its ability to execute its growth strategy, increasing employment levels across the division and the signing of a lease for a new Bolton office which will broaden our fee earning potential.
"There is an ever-increasing market opportunity and our hybrid, scalable business model is well placed to grown in both the credit hire and legal claims markets, delivering near-term returns for our shareholders."
For further information:
|Anexo Group plc
|Alan Sellers, Executive Chairman
||Tel: +44 (0) 151 227 3008
|Mark Bringloe, Chief Financial Officer
|Arden Partners plc
(Nominated Adviser and Broker)
|Chris Hardie / John Llewellyn-Lloyd / Benjamin Cryer / Alex Penney
||Tel: +44 (0) 20 7614 5900
|Henry Harrison-Topham / Steph Watson
||Tel: +44 (0) 20 7466 5000
Notes to Editors:
Anexo is a specialist integrated credit hire and legal services provider founded by Executive Chairman, Alan Sellers. 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 sales team and network of 1,000 active referrers around the UK, Anexo provides customers with an end-to-end service including the provision of Credit Hire vehicles, assistance with repair and recovery, the management and recovery of costs, and the processing of any associated personal injury claim.
The Group was admitted to trading on AIM in June 2018 with the ticker ANX. For additional information please visit: www.anexo-group.com.
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