‘Strategic IPO objectives met; sustained profitable growth and maiden dividend proposed’
Anexo Group plc (AIM: ANX), the specialist integrated credit hire and legal services provider, announces its maiden set of final results for the year ended 31 December 2018 (the ‘period’ or ‘FY 2018’).
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- Successfully raised £25.0 million1 (before expenses) and admitted to trading on AIM in June 2018
- Revenue increased by 24.7% to £56.5 million (FY 2017: £45.3 million)
- Operating profit reported at £15.4 million (2017: £15.1 million), an increase of 2.7%
- Adjusted2 operating profit before exceptional items slightly ahead of market expectations, rising by 13.9% to £17.2 million (FY 2017: £15.1 million)
- Adjusted2 operating profit margin reduced marginally to 30.4% (FY 2017: 33.3%)
- Profit before tax of £14.3 million (2017: £14.6 million), a reduction of 2.0%
- Adjusted2 profit before tax and exceptional items increased to £16.1 million, (2017: £14.6 million), an increase of 10.3%
- Adjusted3 basic EPS at 12 pence (FY 2017: 11.4 pence)
- Proposed final dividend of 1.5 pence per share (FY 2017: Nil)
- Net assets reported at £75.8 million (FY 2017: £55.6 million) representing an increase of 36.3%
- Net cash outflow from operating activities to fund growth of £7.9 million (FY 2017: net cash inflow: £1.1 million)
- Strong net cash balance of £5.5 million at 31 December 2018 (31 December 2017: £0.2 million)
- Net debt balance at 31 December 2018 was £17.3 million (31 December 2017: £15.0 million)
1. The placing that accompanied Anexo’s admission to AIM raised £25.0 million before expenses, of which £10.0 million was raised for the Group, and £15.0 million for the Selling Shareholders, of which not less than £5.0 million was repaid to the Group.
2. Adjusted operating profit and profit before tax: excludes the costs of Admission to AIM and share‑based payment charges.
3. Adjusted EPS: adjusted PBT less tax at statutory rate divided by the number of shares on a pro forma basis, i.e. assuming that the number of shares in issue immediately post-IPO were in issue through the entire comparative period.
Operational Highlights and KPIs
- Bolton office opened on 3 December 2018. At 31 December 2018 it had recruited 20 experienced litigators significantly increasing capacity within Bond Turner
- Focus on settlement rate which continues to move upwards driving increased cash collections
- Number of new cases funded increased 31.2% to 5,930 (FY 2017: 4,520)
|Number of vehicles on hire at the year end
|Average number of vehicles on hire for the year
|Cash collections from settled cases (£’000s)
|New cases funded (no)
|Number of senior fee earners at period end
|Average number of senior fee earners
Commenting on the Final Results, Alan Sellers, Executive Chairman of Anexo Group plc, said:
“We are delighted to report such a strong set of maiden final results which, as announced earlier in January 2019, are ahead of market expectations. Anexo has successfully demonstrated that the cash raised at IPO has enabled the strategic investment outlined upon Admission, expanding the Credit Hire fleet and growing Anexo’s high quality legal team in order to increase the number of processed claims whilst increasing cash generation from cases settled.
“The investment is clearly supporting near-term profitable growth across the business with the strong financial performance, coupled with the ever-increasing UK credit hire and legal claims market, giving the Board confidence in our ability to scale and generate near term returns for our shareholders as demonstrated by the maiden proposed final dividend in line with the Board’s stated intention at Admission.
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 with considerable optimism.”
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)
|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. 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 Credit Hire sales team and network of 1,100 plus 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, and claims management services. The Group’s Legal Services division, Bond Turner, provides the legal support to maximise the recovery of costs through settlement or court action as well as 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.