TIDMANX
RNS Number : 9257Z
Anexo Group PLC
20 September 2022
For immediate release 20 September 2022
Anexo Group plc
('Anexo' or the 'Group')
Interim Results for the six months ended 30 June 2022
"Significant revenue and profit growth with unchanged outlook
for the year"
Anexo Group plc (AIM: ANX), the specialist integrated credit
hire and legal services provider, is pleased to report its Interim
Results for the six months ended 30 June 2022 ('H1 2022' or the
'period')
Financial Highlights
H1 2022 H1 2021 Movement
Revenue GBP68.6 million GBP48.3 million +42.0%
Operating profit GBP16.1 million GBP10.4 million +54.8%
Profit before tax GBP13.6 million GBP8.9 million +52.8%
Net assets GBP137.8 million GBP117.8 million +17.0%
Cash collection GBP67.9 million GBP56.7 million +19.8%
Basic EPS 9.3 pence 6.1 pence +52.5%
-- Revenue increased 42% to GBP68.6 million (H1 2021:
GBP48.3 million) from increased vehicles on hire and
growth in legal fee earners
-- Operating profit increased 55% per cent to GBP16.1
million (H1 2021: GBP10.4 million) from improved cash
collections, leverage of overhead, maximising opportunities
within credit hire and an improved vehicle mix
-- Cash collections from settled cases increased 20% to
GBP67.9 million (H1 2021: GBP56.7 million) with strong
sales growth driving an increase in Trade Receivables
to GBP209.8 million (30 June 2021: GBP160.5 million,
31 December 2021: GBP188.1 million)
-- Net debt (including lease liabilities) as 30 June 2022:
GBP74.2 million (30 June 2021: GBP44.4 million, 31
December 2021: GBP62.0 million)
Operational Highlights
* The Group has shown robust growth across both its
divisions with strong growth in Group vehicle numbers
and high-quality senior fee earner recruitment in the
legal division
* Vehicle numbers which grew rapidly in the first half
of the year are now being carefully managed to
maximise efficient use of working capital
* The number of Group vehicles on the road on 31st
August 2022 was 1,828
* The proportion of the vehicle fleet composed of
motorcycles continues to increase following the
agreement with MCE Insurance in the fourth quarter of
2021
* Good progress is being made with the Volkswagen AG
("VW") emissions case ahead of the scheduled court
date in early 2023. The Group has committed the GBP2
million of funding raised at the end of 2021 towards
the acquisition of Mercedes emissions cases. Total
cumulative investment in both VW and Mercedes cases
is GBP5.8 million, all of which has been expensed
including GBP1.3 million in the first half of 2022
(H1 2021: GBP0.5 million)
* The Group's burgeoning Housing Disrepair ("HDR")
business has gained significant traction in the first
half, with approximately 2,300 cases overall, of
which almost 600 settled in the first half of the
year. HDR revenue more than doubled in the first half
to GBP4.7 million (2021: GBP2.2 million), with profit
of GBP2.4 million (2021 H1: GBP1.1 million).
Outlook
The Group has shown robust growth during the period and
plans to optimise cash generation in the second half year.
The Board has confidence in meeting market expectations
for the year with a focus on improving the vehicle mix,
building on the strong progress in Housing Disrepair and
maximising the emissions opportunities.
KPIs H1 2022 H1 2021 Movement
Number of vehicles on hire
at the period end 1,947 1,740 +11.9%
Average number of vehicles
on hire for the period 2,043 1,461 +39.8%
Completed vehicle hires 5,501 4,081 +34.8%
Number of hire cases settled 3,563 2,924 +21.9%
Number of new cases funded 5,082 4,208 +20.8%
Cash collections from settled
cases (GBP'000s) 67,931 56,665 +19.9%
Legal staff employed at period
end 633 578 +9.5%
Commenting on the Interim Results, Alan Sellers, Executive
Chairman of Anexo Group plc, said:
"I am delighted to report that the Group has continued its
strong performance during the first half of the year. Business
activity in both our credit hire and legal services divisions has
grown strongly.
"We are proud of the social value of the services we offer.
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.
"We continue to manage our vehicle fleet carefully and to
maximise cash collections by identifying appropriate hire
opportunities, particularly within the motorcycle sector; this
allows for more efficient use of working capital whilst also
increasing the overall number of case settlements.
"The strong progress being made in housing disrepair and
emissions will underpin the continued growth in the core business,
and the Board remains confident in meeting market expectations for
the year."
- Ends -
Results Conference Call
An analyst conference call will be held at 09:30 BST today, 20
September 2022. 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:
https://www.anexo-group.com/ . Please contact Nick Dashwood Brown,
Head of Investor Relations, at nick@anexo-group.com 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:
https://www.anexo-group.com/.
For further enquiries:
Anexo Group plc +44 (0) 151 227 3008
www.anexo-group.com
Alan Sellers, Executive Chairman
Mark Fryer, Chief Financial Officer
Nick Dashwood Brown, Head of Investor
Relations
WH Ireland Limited
(Nominated Adviser & Joint Broker)
Chris Hardie / Darshan Patel / Enzo +44 (0) 20 7220 1666
Aliaj (Corporate) www.whirelandplc.com/capital-markets
Fraser Marshall / Harry Ansell (Broking)
Arden Partners plc
(Joint Broker)
John Llewellyn-Lloyd / Louisa Waddell +44 (0) 20 7614 5900
(Corporate) www.arden-partners.co.uk
Tim Dainton (Equity sales)
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 over
1,100 active introducers 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. Bond Turner is also
involved in litigation relating to Housing Disrepair and emissions
claims against major motor manufacturers.
For additional information please visit: www.anexo-group.com .
To subscribe to our investor alert service and receive all press
releases, financial results and other key shareholder messages as
soon as they become available, please visit:
https://www.anexo-group.com/content/investors/alert.asp .
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 2022. The Group has
continued to demonstrate the effectiveness of its business model.
Vehicle numbers within the credit hire division have grown, while
increased case settlements within the legal services division have
ensured a good rise in cash collections.
Demand for hire vehicles shows no signs of abating. We continue
to recruit staff in targeted areas within the legal services
division, while case settlements and cash collections continue to
grow. This points to plenty of opportunities for the Group, albeit
at lower levels of growth to ensure that cash generation can be
further improved.
H1 2022 Group Performance
Anexo has delivered a strong performance across all key Group
financial metrics and KPIs over the first six months of the year.
Group revenues in H1 2022 increased by 42% to GBP68.6 million (H1
2021: GBP48.3 million) and profit before tax rose by 52% to GBP13.6
million (H1 2020: GBP8.9 million).
Credit Hire Division
Demand for vehicles has remained strong throughout the period
following the decisive return of traffic levels to pre-pandemic
levels. The average number of vehicles on the road during H1 2022
reached 2,043 (H1 2021: 1,461), a 40% increase on the prior year.
The Group is committed to careful management of vehicle numbers to
maximise efficient use of working capital; as a consequence, the
overall number of vehicles on the road has been declining toward
the end of the first half of the year and at the period end the
number stood at 1,947. This still represents an 11.9% increase on
the H1 2021 number but shows a reduction of 17.7% on the 2,366
vehicles on the road at the end of FY 2021.
This performance led to growth in Credit Hire revenue of 62%, up
from GBP26.3 million in H1 2021 to GBP42.5 million in H1 2022.
Profit before tax in the Credit Hire division rose by 36% to
GBP10.9 million in H1 2022 (H1 2021: GBP8.0 million). Completed
vehicle hires rose by 35% to 5,501 in H1 2022 (H1 2021: 4,081).
This increase has been supported by the agreement with MCE
Insurance announced on 25 November 2021 as well as by a number of
protocols with insurance counterparties.
Legal Services Division
Credit Hire
The Group remains committed to its strategy of increasing its
claim settlement capacity, thereby maximising cash collections. The
number of senior fee earners employed at the end of H1 2022 rose by
41% to 247 (H1 2021: 175) and the overall number of legal staff
rose from 578 in H1 2021 to 633 in H1 2022, an increase of 10%.
This investment has underpinned continued growth in cash
collections, which rose 20% in H1 2021 to a total of GBP67.9
million (H1 2021: GBP56.7 million). Revenues from the Legal
Services division, which strongly converts to cash, increased by
8.1% to GBP21.4 million in H1 2022 (H1 2021: GBP19.8 million).
Profit before taxation rose from GBP1.5 million in H1 2021 to
GBP2.5 million in H1 2022, an increase of 67%. The Group expects
this revenue trend to continue as more of our staff reach maturity
from a cash collection and settlement position.
Housing Disrepair
The Group's Housing Disrepair ("HDR") division continues to show
significant growth. The number of ongoing claims currently stands
at approximately 2,300 cases. HDR continues to require additional
cash funding; this amounted to GBP0.3 million in the first half
year, with profit of GBP2.4 million (2021 H1: GBP1.1 million).
Emissions Litigation
The advocacy team continues to act on behalf of a number of
individuals in the pursuit of a claim against VW and its
subsidiaries (the "VW Emissions case"). The Group announced on 26
May 2022 that it is engaged in approximately 13,000 cases. The
Group remains in discussions with VW and its representatives around
a possible settlement of these claims.
The Group continues to pursue other emissions cases,
particularly in relation to Mercedes Benz. Total expenditure that
has been expensed in the H1 2022 is GBP1.3 million (H1 2021: GBP0.5
million). The Group currently has approximately 4,000 Mercedes
cases.
The Board believes there is a significant short-term opportunity
to accelerate growth in emissions claims against specific vehicle
manufacturers, as well as HDR claims. Accordingly, the Group has
negotiated an increase in its loan agreement with Blazehill
Capital, first announced on 11 May 2022, from GBP7.5 million to
GBP15 million. The funds will be drawn down immediately to take
advantage of this opportunity. The costs in targeting further
emissions claims will be expensed in the normal way and the Group
will update the market with details of emissions expenditure on a
regular basis.
Dividend
The Board believes that the emissions opportunity warrants
significantly increased investment over the next few months and has
therefore resolved that the interests of the Group and its
shareholders would be best served by paying an annual dividend
following the announcement of the Group's full year results.
Outlook
The Group has shown robust growth in the first half and plans to
optimise cash generation in the second half year with a focus on
improving the vehicle mix. The Board has confidence in meeting
market expectations for the year with a focus on continuing the
strong progress in Housing Disrepair and maximising the emissions
opportunities.
Alan Sellers
Executive Chairman
20 September 2022
Consolidated Statement of Comprehensive Income
For the unaudited period ended 30 June 2022
Unaudited Unaudited Audited
Half year Half year
ended ended Year ended
30-Jun-22 30-Jun-21 31-Dec-21
Note GBP'000s GBP'000s GBP'000s
Revenue 2 68,610 48,316 118,237
Cost of sales (16,253) (10,668) (26,756)
---------- ---------- -----------
Gross profit 52,357 37,648 91,481
Depreciation & profit / loss
on disposal (5,561) (3,809) (8,504)
Amortisation (74) (65) (137)
Administrative expenses (30,759) (23,171) (55,112)
Operating profit before share
based payments 15,963 10,603 27,728
---------- ---------- -----------
Share based payment charges 175 (236) (378)
Non-recurring administrative
expenses - - -
Operating profit 16,138 10,367 27,350
---------- ---------- -----------
Net financing expense (2,500) (1,456) (3,604)
---------- ---------- -----------
Profit before tax 13,638 8,911 23,746
Taxation (2,734) (1,810) (4,598)
Profit and total comprehensive
income for the year attributable
to the owners of the company 10,904 7,101 19,148
---------- ---------- -----------
Earnings per share
Basic earnings per share (pence) 9.3 6.1 16.5
---------- ---------- -----------
Diluted earnings per share (pence) 9.3 6.0 16.2
---------- ---------- -----------
The above results were derived from continuing operations.
Consolidated Statement of Financial Position
Unaudited at 30 June 2022
Unaudited Unaudited Audited
30-Jun-22 30-Jun-21 31-Dec-21
Assets Note GBP'000s GBP'000s GBP'000s
Non-current assets
Property, plant and equipment 3 2,323 2,217 2,071
Right-of-use assets 16,816 13,337 16,896
Intangible assets 112 238 188
Deferred tax assets 112 112 112
---------- ---------- ----------
19,363 15,904 19,267
---------- ---------- ----------
Current assets
Trade and other receivables 4 209,817 160,485 188,134
Corporation tax receivable - 439 -
Cash and cash equivalents 1,247 1,418 7,562
211,176 162,342 195,696
---------- ---------- ----------
Total assets 230,427 178,246 214,963
---------- ---------- ----------
Equity and liabilities
Equity
Share capital 59 58 58
Share premium 16,161 16,161 16,161
Share based payment reserve - 1,935 2,077
Retained earnings 121,554 99,621 109,928
---------- ---------- ----------
Equity attributable to the owners
of the Group 137,774 117,775 128,224
---------- ---------- ----------
Non-current liabilities
Other interest-bearing loans
and borrowings 5 20,710 3,029 13,814
Lease liabilities 8,462 7,382 8,430
Deferred tax liabilities - 32 32
29,172 10,443 22,276
---------- ---------- ----------
Current liabilities
Other interest-bearing loans
and borrowings 5 37,235 28,781 38,499
Lease liabilities 9,018 6,619 8,833
Trade and other payables 9,966 9,108 12,635
Corporation tax liability 7,262 5,520 4,496
63,481 50,028 64,463
---------- ---------- ----------
Total liabilities 92,653 60,471 86,739
---------- ---------- ----------
Total equity and liabilities 230,427 178,246 214,963
---------- ---------- ----------
Consolidated Statement of Changes in Equity
For the unaudited period ended 30 June 2022
Share
based
Share Share payment Retained
capital premium reserve earnings Total
GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s
At 1 January 2022 58 16,161 2,077 109,928 128,224
Profit for the period
and total comprehensive
income - - - 10,904 10,904
Issue of share
capital 1 - - - 1
Share based payment
charge - - (175) - (175)
Transfer of share
based payment reserve - - (1,902) 1,902 -
Dividends - - - (1,180) (1,180)
At 30 June 2022 59 16,161 - 121,554 137,774
--------- ----------- ----------- ---------- ---------
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
--------- ----------- ----------- ---------- ---------
Profit for the period
and total comprehensive
income - - - 12,047 12,047
Share based payments
charge - - 142 - 142
Adjustment - - - - -
Dividends - - - (1,740) (1,740)
At 31 December
2021 58 16,161 2,077 109,928 128,224
--------- ----------- ----------- ---------- ---------
Anexo Group Plc
Consolidated Statement of Cash Flows
For the unaudited period ended 30 June 2022
Unaudited Unaudited
Half year Half year Audited
ended ended Year ended
30-Jun-22 30-Jun-21 31-Dec-21
GBP'000s GBP'000s GBP'000s
Cash flows from operating
activities
Profit for the year 10,904 7,101 19,148
Adjustments for:
Depreciation and profit
/ loss on disposal 5,561 3,809 8,504
Amortisation 74 65 137
Financial expense 2,500 1,456 3,604
Share based payment charge (175) - 378
Taxation 2,734 1,810 4,598
---------- ---------- ------------
21,598 14,241 36,369
Working capital adjustments
Increase in trade and other
receivables (21,682) (12,577) (40,224)
Increase in trade and other
payables (2,667) (160) 3,131
---------- ---------- ------------
Cash generated from operations (2,751) 1,504 (724)
Interest paid (2,380) (1,335) (3,364)
Tax repaid - 154 (3,219)
Net cash from operating
activities (5,131) 323 (7,307)
---------- ---------- ------------
Cash flows from investing
activities
Proceeds from sale of property,
plant and equipment 722 448 941
Acquisition of property, plant
and equipment (1,285) (497) (1,439)
Investment in intangible fixed
assets - (70) (91)
Net cash from investing
activities (563) (119) (589)
---------- ---------- ------------
Cash flows from financing
activities
Proceeds from new loans 10,265 908 25,039
Dividends paid (1,180) - (1,740)
Repayment of borrowings (4,753) (4,171) (7,951)
Lease payments (4,953) (3,743) (8,110)
Net cash from financing
activities (621) (7,006) 7,238
---------- ---------- ------------
Net decrease in cash and cash
equivalents (6,315) (6,802) (658)
Cash and cash equivalents
at 1 January 7,562 8,220 8,220
Cash and cash equivalents
at period end 1,247 1,418 7,562
---------- ---------- ------------
Anexo Group Plc
Notes to the Interim Statements
For the unaudited period ended 30 June 2022
1. Basis of preparation and significant accounting policies
The condensed consolidated financial statements are prepared
using accounting policies consistent with International Financial
Reporting Standards and in accordance with International Accounting
Standard ('IAS') 34, 'Interim Financial Reporting'.
The information for the year ended 31 December 2021 does not
constitute statutory accounts as defined in Section 434 of the
Companies Act 2006. A copy of the statutory accounts for that year
has been delivered to the Registrar of Companies. The auditor's
report on these accounts was not qualified and did not include a
reference to any matters to which the auditor drew attention by way
of emphasis without qualifying the report and did not contain
statements under Section 498 (2) or (3) of the Companies Act
2006.
The condensed unaudited financial statements for the six months
to 30 June 2022 have not been audited or reviewed by auditors
pursuant to the Auditing Practices Board guidance on Review of
Interim Financial Information.
The condensed consolidated financial statements have been
prepared under the going concern assumption.
The Directors have assessed the future funding requirement of
the Group and have compared them to the levels of available cash
and funding resources. The assessment included a review of current
financial projections to December 2023. Having undertaken this
work, the Directors are of the opinion that the Group has adequate
resources to finance its operations for the foreseeable future and
accordingly, continue to adopt the going concern basis in preparing
the Interim Report.
2. Segmental Reporting
The Group's reportable segments are as follows:
-- the provision of credit hire vehicles to individuals who have had a non-fault accident, and
-- associated legal services in the support of the individual
provided with a vehicle by the Group and other legal service
activities, and
-- vehicle emissions litigation, and
-- Group and central costs.
Management monitors the operating results of business segments
separately for the purpose of making decisions about resources to
be allocated and of assessing performance.
Half year ended 30 June 2022
Housing Emissions Group and
Credit Disrepair Central
Hire Legal Services Costs Consolidated
GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s
Revenues
Third party 42,503 21,392 4,715 - - 68,610
Total revenues 42,503 21,392 4,715 - - 68,610
---------- --------------- ----------- ---------- ------------ -----------------
Profit before
taxation 10,941 2,527 2,353 (1,278) (905) 13,638
---------- --------------- ----------- ---------- ------------ -----------------
Net cash
from operations (3,990) 2,228 (257) (1,278) (1,834) (5,131)
---------- --------------- ----------- ---------- ------------ -----------------
Depreciation 4,990 645 - - - 5,635
---------- --------------- ----------- ---------- ------------ -----------------
Segment assets 176,822 46,927 6,358 - 320 230,427
---------- --------------- ----------- ---------- ------------ -----------------
Capital expenditure 1,198 87 - - - 1,285
---------- --------------- ----------- ---------- ------------ -----------------
Segment liabilities 61,320 25,278 - 5,801 254 92,653
---------- --------------- ----------- ---------- ------------ -----------------
Half year ended 30 June 2021
Housing Emissions Group and
Credit Disrepair Central
Hire Legal Services Costs Consolidated
GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s
Revenues
Third party 26,306 19,795 2,215 - - 48,316
Total revenues 26,306 19,795 2,215 - - 48,316
---------- --------------- ----------- ---------- ------------ -----------------
Profit before
taxation 7,970 1,536 1,054 (477) (1,172) 8,911
---------- --------------- ----------- ---------- ------------ -----------------
Net cash
from operations 284 1,744 (531) (477) (697) 323
---------- --------------- ----------- ---------- ------------ -----------------
Depreciation 3,138 736 - - - 3,874
---------- --------------- ----------- ---------- ------------ -----------------
Segment assets 130,723 44,514 2,293 - 716 178,246
---------- --------------- ----------- ---------- ------------ -----------------
Capital expenditure 243 254 - - - 497
---------- --------------- ----------- ---------- ------------ -----------------
Segment liabilities 37,681 20,224 - 2,351 215 60,471
---------- --------------- ----------- ---------- ------------ -----------------
Year ended 31 December 2021
Housing Emissions Group and
Credit Disrepair Central
Hire Legal Services Costs Consolidated
GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s
Revenues
Third party 71,338 41,823 5,076 - - 118,237
Total revenues 71,338 41,823 5,076 - - 118,237
---------- --------------- ------------ ------------ -------------- -----------------
Profit before
taxation 19,811 4,423 2,592 (819) (2,261) 23,746
---------- --------------- ------------ ------------ -------------- -----------------
Net cash
from operations (10,654) 5,637 (568) (819) (903) (7,307)
---------- --------------- ------------ ------------ -------------- -----------------
Depreciation 7,205 1,436 - - - 8,641
---------- --------------- ------------ ------------ -------------- -----------------
Segment assets 161,578 49,545 3,648 - 192 214,963
---------- --------------- ------------ ------------ -------------- -----------------
Capital
expenditure 998 441 - - - 1,439
---------- --------------- ------------ ------------ -------------- -----------------
Segment
liabilities 55,415 25,413 - 5,501 410 86,739
---------- --------------- ------------ ------------ -------------- -----------------
3. Property, Plant and Equipment
Fixtures
Fittings
Property & Right of Office
Improvement Equipment Use assets Equipment Total
GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s
Cost or valuation
At 1 January 2021 492 2,675 24,693 878 28,738
Additions - 287 4,213 57 4,557
Disposals - - (6,084) - (6,084)
------------ ---------- ----------- ---------- -----------
At 30 June 2021 492 2,962 22,822 935 27,211
Additions 2 163 8,394 28 8,587
Disposals - - (1,572) (334) (1,906)
------------ ---------- ----------- ---------- -----------
At 31 December
2021 494 3,125 29,644 629 33,892
Additions 152 193 5,845 266 6,456
Disposals - - (3,976) - (3,976)
At 30 June 2022 646 3,318 31,513 895 36,372
------------ ---------- ----------- ---------- -----------
Depreciation
At 1 January 2021 297 859 11,612 702 13,470
Charge for year 13 270 3,560 31 3,874
Eliminated on disposal - - (5,687) - (5,687)
------------ ---------- ----------- ---------- -----------
At 30 June 2021 310 1,129 9,485 733 11,657
Charge for the
year 12 289 4,479 38 4,818
Disposals - - (1,216) (334) (1,550)
------------ ---------- ----------- ---------- -----------
At 31 December
2021 322 1,418 12,748 437 14,925
Charge for the
year 16 288 5,300 55 5,659
Adjustment / disposals - - (3,351) - (3,351)
At 30 June 2022 338 1,706 14,697 492 17,233
------------ ---------- ----------- ---------- -----------
Carrying amount
At 30 June 2022 308 1,612 16,816 403 19,139
------------ ---------- ----------- ---------- -----------
At 31 December
2021 172 1,707 16,896 192 18,967
------------ ---------- ----------- ---------- -----------
At 30 June 2021 182 1,833 13,337 202 15,554
------------ ---------- ----------- ---------- -----------
4. Trade and Other Receivables
Jun-22 Jun-21 Dec-21
GBP'000s GBP'000s GBP'000s
Trade receivables - gross
claim value 370,433 289,030 325,260
Settlement/impairment provision (205,966) (160,011) (178,867)
---------- ---------- ----------
Net trade receivables 164,467 129,019 146,393
Accrued income 44,177 30,258 39,431
Prepayments 821 1,093 1,849
Other debtors 352 95 461
209,817 160,465 188,134
---------- ---------- ----------
The Group's exposure to credit and market risks, including
impairments and allowances for credit losses, relating to trade and
other receivables is disclosed in the financial risk management and
impairment of financial assets note.
Trade receivables stated above include amounts due at the end of
the reporting period for which an allowance for doubtful debts has
not been recognised as the amounts are still considered recoverable
and there has been no significant change in credit quality.
5. Borrowings
Jun-22 Jun-21 Dec-21
GBP'000s GBP'000s GBP'000s
Non-current loans and borrowings
Revolving credit facility 10,000 - 10,000
Other borrowings 10,710 3,029 3,814
Lease liabilities 8,462 7,382 8,430
29,172 10,411 22,244
----------- ----------- -----------
Current loans and borrowings
Invoice discounting facility 31,364 15,449 29,258
Revolving credit facility - 8,000 -
Other borrowings 5,871 5,332 9,241
Lease liabilities 9,018 6,619 8,833
46,253 35,400 47,332
----------- ----------- -----------
Direct Accident Management Limited uses an invoice discounting
facility which is secured on the trade receivables of that company.
Security held in relation to the facility includes a debenture over
all assets of Direct Accident Management Limited dated 11 October
2016, extended to cover the assets of Anexo Group Plc and Edge
Vehicles Rentals Group Limited from 20 June 2018 and 28 June 2018
respectively, as well as a cross corporate guarantee with
Professional and Legal Services Limited dated 21 February 2018.
In July 2020 Direct Accident Management Limited secured a
GBP5.0m loan facility from Secure Trust Bank Plc, under the
Government's CLBILS scheme. The loan was secured on a repayment
basis over the three year period, with a three month capital
repayment holiday.
Direct Accident Management Limited is also party to a number of
leases which are secured over the respective assets funded.
The revolving credit facility is secured by way of a fixed
charge dated 26 September 2019, over all present and future
property, assets and rights (including uncalled capital) of Bond
Turner Limited. The loan is structured as a revolving credit
facility which is committed for a three-year period, until 13
October 2024, with no associated repayments due before that date.
Interest is charged at 3.25% over the Respective Rate.
In July 2020 Anexo Group Plc secured a loan of GBP2.1m from a
specialist litigation funder to support the investment in marketing
costs associated with the VW Emissions Class Action. The terms of
the loan are that interest accrues at the rate of 10% per annum,
with maturity three years from the date of receipt of funding with
an option to repay early without charge. In addition to the
interest charges the loan attracts a share of the proceeds to be
determined by reference to the level of fees generated for the
Group.
In November 2021 a further GBP3.0m loan was sourced from certain
of the principal shareholders and directors of the Group to support
the investment in 2022 of the Mercedes Benz emissions claim. The
terms of the loan are that interest accrues at the rate of 10% per
annum, with maturity two years from the date of receipt of funding
with an option to repay early without charge. In addition to the
interest charges the loan attracts a share of the proceeds to be
determined by reference to the level of fees generated for the
Group.
- Ends -
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END
IR LLMATMTTBBLT
(END) Dow Jones Newswires
September 20, 2022 02:00 ET (06:00 GMT)
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