Latest Results

Interim Results

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.

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.

Operational Highlights

  • 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)

Financial Highlights

  • 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."


Executive Chairman's Statement

On behalf of the Board, I am pleased to introduce Anexo's maiden set of interim results since the Group's successful admission to trading on AIM in June 2018. The Group has performed strongly in H1 2018, notwithstanding the commitment the senior management demonstrated during this period to gain admission, whilst delivering growth compared to H2 2017. The performance in the period is in line with management's expectations and has been impacted by the investment made in lead generation, driving the increase seen in the number of vehicles on the road, which is supportive of the Board's expectations for the full year.

Admission to AIM

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. The response from investors to the admission was positive, demonstrating confidence in both Anexo's strategy and the management team's ability to deliver and generate returns. The Board joins me in welcoming all our new shareholders and thanking them for their continuing support of the Group.

Financial review

Although considerable time was spent preparing for the AIM admission during H1 2018, the management team remained focused on growing the Group's operational businesses and we are pleased that these maiden results for six months ended 30 June 2018 represent an improvement over that seen in the previous six months as management decisions took effect. A summary of the Group's key financial performance is set out in the table below:

Financial Highlights

  6 months ended
30 June 2018
6 months ended
30 June 2017
6 months ended
31 December 2017
Revenue 23,458 22,879 21,946
Gross Profit 16,578 17,005 16,613
Gross margin (%) 70.7% 74.3% 75.7%
Profit before taxation 5,338 8,498 6,069
Adjusted profit before taxation* 6,776 8,498 6,069
EBITDA 6,339 8,954 6,545
Adjusted EBITDA* 7,777 8,954 6,545
Adjusted EPS* (pence) 5.4 6.4 4.9

* Adjusted results exclude certain expenses incurred as part of the flotation

Highlights of the Group performance include:

  • Revenues increased from £22.9 million in H1 2017 to £23.5 million in H1 2018, an increase of 2.5%, and by 6.9% from the revenue reported in H2 2017, the growth coming from the legal services business reflecting the focus during that period on investment in staff numbers to drive case settlements and cash generation.
  • Whilst revenues increased period on period, gross profits reduced slightly between H1 2017 and H1 2018 (£0.4 million, 2.5%) and remained consistent with that reported in H2 2017. The slight reduction reflecting a change in insurance provider, H1 2017 benefitting from rebates agreed with the Group's former insurer, who effectively withdrew from the market in 2017. The increased net insurance cost impacted gross margins with further insurance cost increases associated with the sharp increase in vehicle numbers seen in H1 2018.
  • Adjusted EBITDA reduced from £9.0 million in H1 2017, to £6.5 million in H2 2017, then rising to £7.8 million in H1 2018, these movements reflecting both the insurance costs noted above and variations in the performance of the credit hire business, which was effectively managed for cash in the latter part of 2017, this trend being reversed in H1 2018.


As outlined in the Group's AIM admission document, Anexo is not paying an interim dividend in 2018 but the Board intends to recommend the payment of a dividend of 1.5 pence per Ordinary Share for the current financial year ending 31 December 2018.

Operational Review

  H1 2018 H1 2017 H2 2017
Average number of vehicles on the road (No) 914 930 861
Vehicles on the road at the period end (No) 1,240 974 815
Bond Turner staffing - period end (No) 215 167 174
Bond Turner staffing - average (No) 201 159 173

Credit Hire division

The Group continues to devote significant resource and focus to the take on processes that are essential in securing quality business which supports the continued success and excellent recovery rates historically reported. This investment in staffing and systems continues with recovery rates above historical averages.

During the six months to June 2018, management has successfully expanded the number of vehicles on hire by 424 (a 52% increase), the total rising from 815 at the start of the period to 1,240 at 30 June 2018. This increase has been supported by the recruitment of an additional 8 sales staff (31%), expanding our geographical coverage and demonstrates the significant growth opportunity available to the Group.

Following the effective withdrawal of our previous insurer from the market, we have secured a new, long term, insurance partner for the fleet as well as agreeing a 12-month extension to our primary long term funding facility so as to provide a robust platform for future growth alongside efficient deployment of the working capital generated from the IPO.

Legal Services division

  H1 2018 H1 2017 H2 2017
New Cases Funded 2,588 2,306 2,130

The IPO funds were very much targeted at increasing capacity within the legal services business so as to allow the credit hire business to grow whilst improving cash generation levels. In terms of new cases funded there was a 12% increase on H1 2017 to H1 2018 and a 22% increase from H2 2017 to H1 2018. This trend continued to show improvement post the period end, in the quarter ended 31 August 2018 there were 1,686 new cases funded, a 49% increase when compared to the comparative period in 2017.

In the period we commenced lease negotiations for a new Bolton office alongside the recruitment of senior staff so as to hit the ground running once the office is operational. On 5 September 2018, the Group announced that the lease for the Bolton office had been signed and fit out works had commenced with a view to being fully operational in November 2018. The recruitment of staff is proceeding better than forecast and to date we have secured 12 senior fee earners for the new office which represents a 27% increase in qualified fee earners.

The Bolton office has unlocked logistical recruitment restraints by allowing the Group to access and secure highly skilled, vastly experienced litigators who are highly regarded in the industry. The cross section of staff includes individuals in the field of credit hire, who come with a range of skill sets with invaluable experience from both a claimant and defendant background. Their recruitment will not only lead to an increase in settlements, but it will also allow these individuals to impart their knowledge and experience amongst existing teams, adding to skill sets and elevating the skilled, litigious reputation of the firm further.

Trading Outlook

As we envisaged and targeted, trading in H1 2018 presents a significant improvement on that seen in H2 2017 as management decisions and investment have resulted in increasing claims generation. With over 1,200 vehicles now with our clients and headcount in Bond Turner increasing, trading for the full year is expected to be in line with expectations.

Post period end we have secured the lease for our new office in Bolton as well as started the recruitment process with the office expected to open in November 2018. The increased legal capacity will drive increase settlement numbers and rates, with a view to closing the gap between cases taken on and settlement to improve cash generation into 2019 and 2020, in line with our forecasts.

I believe Anexo is now well positioned to take advantage of the opportunities available to it and the Board looks forward to the future with optimism.


Alan Sellers
Executive Chairman

12 September 2018


Consolidated Statement of Comprehensive Income
For the unaudited period ended 30 June 2018

    Unaudited Unaudited Unaudited
    Half year
Half year
    Jun-18 Jun-17 Dec-17
  Note £ £ £
Revenue   23,458,090 22,878,908 44,824,561
Cost of sales   (6,880,075) (5,873,908) (11,206,564)
Gross profit   16,578,015 17,005,000 33,617,997
Other operating income   - - -
Depreciation   (605,867) (307,051) (759,718)
Transaction costs   (1,437,829) - -
Administrative expenses   (8,800,765) (8,051,043) (18,119,255)
Other operating expenses   - - -
Operating profit   5,733,554 8,646,906 14,739,024
Finance income   130,010 325,988 320,227
Finance costs   (525,281) (475,362) (492,598)
Net financing expense   (395,271) (149,374) (172,371)
Profit before tax   5,338,283 8,497,532 14,566,653
Taxation   (790,058) (1,443,259) (2,159,519)
Profit for the period / year   4,548,225 7,054,273 12,407,134
Total comprehensive income for the year attributable to owners of the Group   4,548,225 7,054,273 12,407,134
Earnings per share        
  Basic and diluted earnings per share (pence)   4.1 6.4 11.3

The above results were derived from continuing operations.


Consolidated Statement of Financial Position
Unaudited at 30 June 2018

    Unaudited Unaudited Unaudited
    Jun-18 Jun-17 Dec-17
Assets Note £ £ £
Non-current assets        
Property, plant and equipment   1,917,779 1,187,448 1,520,466
    1,917,779 1,187,448 1,520,466
Current assets        
Trade and other receivables   81,173,616 74,880,483 80,428,408
Cash and cash equivalents   11,121,856 165,495 202,282
    92,295,472 75,045,978 80,630,690
Total assets   94,213,251 76,233,426 82,151,156
Equity and liabilities        
Share capital   55,000 50,000 50,000
Share premium   9,310,069 40,104 40,104
Merger reserve   - -  
Retained earnings   59,190,546 52,006,004 55,461,844
Equity attributable to the owners of the Group   68,555,615 52,096,108 55,551,948
Non-current liabilities        
Other interest-bearing loans and borrowings   5,566,252 4,724,944 5,475,470
Directors loan account   - - -
Deferred tax liabilities   20,178 - 20,178
    5,586,430 4,724,944 5,495,648
Current liabilities        
Bank overdraft   5,568,984 7,066,736 8,947,742
Other interest-bearing loans and borrowings   2,346,593 918,529 825,343
Trade and other payables   6,439,072 4,993,888 5,395,482
Corporation tax liability   5,716,557 6,433,221 5,934,993
    20,071,206 19,412,374 21,103,560
Total liabilities   25,657,636 24,137,318 26,599,208
Total equity and liabilities   94,213,251 76,233,426 82,151,156


Consolidated Statement of Changes in Equity
For the unaudited period ended 30 June 2018

    £ £ £ £
At 1 January 2018   50,000 40,104 55,461,844 55,551,948
Profit for the period and total comprehensive income   - - 4,548,225 4,548,225
Dividends   - - (819,523) (819,523)
Issue of share capital   5,000 - - 5,000
Creation of share premium   - 9,269,965 - 9,269,965
At 30 June 2018   55,000 9,310,069 59,190,546 68,555,615
At 1 January 2017   50,000 40,104 46,755,916 46,846,020
Profit for the period and total comprehensive income   - - 7,054,273 7,054,273
Dividends   - - (1,804,185) (1,804,185)
At 30 June 2017   50,000 40,104 52,006,004 52,096,108
Profit for the period and total comprehensive income   - - 5,352,861 5,352,861
Dividends   - - (1,897,021) (1,897,021)
At 31 December 2017   50,000 40,104 55,461,844 55,551,948


Consolidated Statement of Cash Flows
For the unaudited period ended 30 June 2018

    Unaudited Unaudited  
    Half year
Half year
Year ended
    Jun-18 Jun-17 Dec-17
  Note £ £ £
Cash flows from operating activities        
Profit for the period / year   4,548,225 7,054,273 12,407,134
Adjustments for:        
Depreciation and amortisation   605,867 307,051 729,704
Financial income   (130,010) (325,988) (320,227)
Financial expense   525,281 475,362 492,598
Taxation   794,658 1,443,259 2,159,519
    6,344,021 8,953,957 15,468,728
Working capital adjustments        
Increase in trade and other receivables   (1,012,310) (6,797,146) (12,345,071)
(Decrease)/increase in trade and other payables   1,581,086 (730,953) (329,359)
Cash generated from operations   6,912,797 1,425,858 2,794,298
Interest paid   (525,281) (475,362) (492,598)
Interest received   130,010 325,988 320,227
Tax paid   (1,013,094) (442,103) (1,474,786)
Net cash from operating activities   5,504,432 834,381 1,147,141
Cash flows from investing activities        
Proceeds from sale of property, plant and equipment   103,593 - 183,397
Acquisition of property, plant and equipment   (1,106,713) (534,265) (1,473,063)
Net cash from investing activities   (1,003,120) (534,265) (1,289,666)
Cash flows from financing activities        
Net proceeds from the issue of
share capital
  9,324,965 - -
Proceeds from new loan   609,824 4,600,000 5,608,333
Dividends   (1,015,289) (1,804,185) (3,701,206)
Repayment of borrowings   (80,773) (388,000) -
Payment of finance lease liabilities   (524,087) (211,428) (425,747)
New finance lease arrangements   711,943 632,689 1,205,555
Net cash from financing activities   9,026,583 2,829,076 2,686,935
Net increase in cash and cash equivalents   13,527,895 3,129,192 2,544,410
Cash and cash equivalents at 1 January   (7,486,023) (10,030,433) (10,030,433)
Cash and cash equivalents at period end   6,041,872 (6,901,241) (7,486,023)


Notes to the Interim Statements
For the unaudited period ended 30 June 2018

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


Page last updated: 12 September 2018