Corporate News
Final Results
11 May 2022
“Significant growth in profits driven by increased cash collections”
Anexo Group plc (AIM: ANX), the specialist integrated credit hire and legal services provider, announces its final results for the year ended 31 December 2021 (the ‘period’ or ‘FY 2021’).
Download To view a full version of the results in |
| Financial Highlights | 2021 | 2020 | % movement |
| Total revenues (£’000s) | 118,237 | 86,752 | +36.2% |
| Operating profit (£’000s) | 27,350 | 18,050 | +51.4% |
| Adjusted1 operating profit before exceptional items (£’000s) | 27,728 | 18,708 | +48.1% |
| Adjusted1 operating profit margin (%) | 23.5 | 21.6 | +8.8% |
| Profit before tax (£’000s) | 23,746 | 15,488 | +52.9% |
| Adjusted1 profit before tax and exceptional items (£’000s) | 24,124 | 16,146 | +49.7% |
| Adjusted2 basic EPS (pence) | 16.8 | 11.4 | +48.2% |
| Total dividend for the year (pence) | 1.5 | 1.5 | - |
| Equity attributable to the owners of the Company (£’000s) | 128,224 | 110,438 | +16.1% |
| Net cash flow (£’000s) | -7,300 | +200 | - |
| Net debt balance (£’000s) | 62,000 | 40,500 | +53.1% |
Note: The basis of preparation of the consolidated financial statements for the current and previous year is set out in the Financial Review on page 14.
1. Adjusted operating profit and profit before tax: excludes share‑based payment charges in 2020 and 2021. A reconciliation to reported (IFRS) results is included in the Financial Review on page 19.
2. Adjusted EPS: adjusted PBT less tax at statutory rate divided by the weighted number of shares in issue during the year.
Financial and Operational KPIs
- During 2021, we saw the continued improvement in a number of key performance measures (detailed below). These have resulted in a significant improvement in financial performance for the Group during the period, notwithstanding the continuing issues faced during 2021 from COVID-19. Opportunities within the Credit Hire division have never been so strong, following the introduction of the Civil Liabilities Act 2021, and the Group has deployed increasing working capital facilities and reinvested significant levels of cash collections into the new case portfolio. Consequently, the number of new cases funded rose from 7,535 to 10,265, an increase of 36.2%. This investment is supported by growth in cash collections, which rose by 21.5% in the year to reach £119.0 million in 2021.
- Our ability to fund growth in our core business has been supported by investment in legal staff. In 2021, the number of senior fee earners grew by 45% to reach 237 at the year end. This investment has driven increased cash collections in the year despite the challenges of the reduced operation of the court system. Much of the investment will start to impact during 2022 and beyond, reflecting the life cycle of a typical credit hire claim and the time a new starter takes to reach settlement maturity.
| KPI’s | 2021 | 2020 | % movement |
| Total revenues (£’000s) | 118,237 | 86,752 | +36.3% |
| Gross profit (£’000s) | 91,481 | 67,952 | +34.6% |
| Adjusted operating profit (£000’s) | 27,728 | 18,708 | +48.2% |
| Adjusted operating profit margin (%) | 23.5% | 21.6% | +10.9% |
| Vehicles on hire at the year-end (no) | 2,366 | 1,613 | +46.7% |
| Average vehicles on hire for the year (no) | 1,834 | 1,515 | +21.1% |
| Number of hire cases settled | 6,187 | 5,236 | +18.2% |
| Cash collections from settled cases (£’000s) | 119,007 | 97,977 | +21.5% |
| New cases funded (no) | 10,265 | 7,535 | +36.2% |
| Legal staff at the period end (no) | 634 | 518 | +22.4% |
| Average number of legal staff (no) | 590 | 498 | +18.5% |
| Total senior fee earners at period end (no) | 237 | 163 | +45.4% |
| Average senior fee earners (no) | 201 | 144 | +39.6% |
Commenting on the Final Results, Alan Sellers, Executive Chairman of Anexo Group plc, said:
“I am pleased to report that the Group has had a successful 2021, building on the achievements of 2020. The results demonstrate the resilience of the Group’s business model, as we improved on last year’s cash collections, whilst still facing uncertainty due to the COVID-19 pandemic. Group revenues in 2021 increased by over a third compared to the previous year.
“Opportunities within the Credit Hire division have never been so strong. As a result, the Group has focused considerable resource here and has seen the number of new cases funded rise substantially.
“The Board remains focused on long term growth, and we are confident that there are significant opportunities that exist in 2022 to build upon our successful platform. The growth of our Housing Disrepair Division throughout 2021, as well as our already resilient business model, presents an exciting outlook for the year ahead.”
Analyst Briefing
A conference call for analysts will be held at 9.30am today, 11 May 2022. A copy of the Final Results presentation is available at the Group's website: https://www.anexo-group.com/
An audio webcast of the conference call with analysts will be available after 12pm today: https://www.anexo-group.com/content/investors/latest-results
For further enquiries:
| Anexo Group plc | +44 (0) 151 227 3008 www.anexo-group.com |
| Alan Sellers, Executive Chairman Mark Bringloe, Chief Financial Officer Nick Dashwood Brown, Head of Investor Relations | |
| WH Ireland Limited (Nominated Adviser & Joint Broker) | |
| Chris Hardie / Darshan Patel / Enzo Aliaj (Corporate) Fraser Marshall / Harry Ansell (Broking) | +44 (0) 20 7220 1666 www.whirelandplc.com/capital-markets |
| Arden Partners plc (Joint Broker) John Llewellyn-Lloyd / Louisa Waddell (Corporate) Tim Dainton (Equity sales) | +44 (0) 20 7614 5900 www.arden-partners.co.uk |
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 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.
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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