Interim results for the period ended 30 June 2024

Source: RNS
RNS Number : 0000B
Anexo Group PLC
20 August 2024
 

The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

 

20 August 2024

For immediate release

 

 

 

Anexo Group plc

('Anexo' or the 'Group')

 

Interim Results for the six months ended 30 June 2024

 

"Continued focus on investment, sustainable growth and provision of high-quality legal services"

 

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 2024 ('H1 2024' or the 'period').

 

It should be noted that, as previously reported, the results for H1 2023 include the contribution from the agreement reached with Volkswagen AG ('VW') in relation to the Emissions Claim. The terms of the agreement (as announced on 5 June 2023) are subject to confidentiality restrictions. The agreement resulted in revenues in H1 2023 outside the normal course of historic business, which should be taken into account when comparing H1 2023 and H1 2024.

 

To aid comparison of these H1 2024 results with H1 2023 we have provided a divisional breakdown in trading performance below.   

 

Divisional Financial Highlights

 

Revenues

·         Credit Hire revenues increased by 21.8% to £35.2 million (H1 2023: £28.9 million) reflecting higher vehicle activity in the period.

·         Legal Services revenues reduced by 31.5% to £33.5 million (H1 2023: £48.9 million), noting the results for H1 2023 include the impact of the agreement reached with VW. The underlying business on a normalised basis grew in H1 2024 compared with H1 2023.

Profit Before Taxation

·       Credit Hire reported a strong improvement in profit before tax, reaching £4.1 million (H1 2023: £2.2 million) an increase of 86.4%, reflecting both increased vehicle activity in the period and continued cost control.

·       Legal Services profit before tax was £3.3 million (H1 2023: £14.2 million) as the investment in staffing continued (a 10.3% increase in headcount was reported in H1 2024), whilst H1 2023 included the impact of the agreement reached with VW.



 

Group Financial Highlights






H1 2024

H1 2023

Movement

Revenues 1

£68.7 million

£77.8 million

-11.7%

Profit before taxation 1

£5.9 million

£15.2 million

-61.2%

Cash collections

£83.7 million

£77.4 million

+8.1%

Net debt

£67.9 million

£61.2 million

+10.9%

Basic EPS 1

3.7 pence

8.6 pence

-57.0%









 

1. The results for H1 2023 include the impact of the agreement of the VW Emissions Case.

 

·   

·        Cash collections from settled cases increased 8.1% to £83.7 million (H1 2023: £77.4 million). This excludes the legal fees associated with the VW Emissions Claim and reflects also the continued investment in staff and infrastructure across the Group.

·        The Group generated £4.7 million in Net Cash from Operating Activities (H1 2023: £15.7 million (including the impact of VW); and H2 2023: £1.6 million), an increase of £3.1 million compared with H2 2023.

·        A reduction in net debt (including lease liabilities) was reported in 2023 (£5.2 million - including the impact of VW) following the agreement of the VW Emissions Case. Net debt as at 30 June 2024 stood at £67.9 million, unchanged from 31 December 2023 (£67.9 million).

·        Revenue from Credit Hire and Housing Disrepair increased by 21.8% and 15.3% respectively in H1 2024. Group revenue was £68.7 million in H1 2024 (H1 2023: £77.8 million (including the impact of VW; and H2 2023: £71.6 million), reflecting growth across our core business activities, noting Group performance was supported in H1 2023 by the impact of the agreement with VW.

·        Profit before tax remains in line with management expectations at £5.9 million in H1 2024 in what is traditionally our quieter half (H1 2023: £15.2 million (including the impact of VW); and H2 2023: £7.8 million). The results for H1 2024 reflect an increased level of investment in new vehicle claims (13.2%) and staff within legal services (10.3%) which will drive growth in future cash collections and performance.

 



 

Operational Highlights

 

 

H1 2024

H1 2023

% movement

Credit Hire

 



Revenues (£'000s)

35,205

28,856

+22.0%

Vehicles on hire at the period end (no)

1,772

1,961

-9.6%

Average vehicles on hire for the period (no)

2,028

1,634

+24.1%

Number of hire cases settled

4,394

4,369

+0.6%

New cases funded (no)

5,770

4,920

+13.2%

Legal Services

 



Revenues (£'000s) 1

33,529

48,916

-31.5%

Housing disrepair claims ongoing (no)

3,880

3,291

+17.9%

Housing disrepair claims settled (no)

1,127

884

+27.5%

Legal staff at the period end (no)

761

690

+10.3%

Average number of legal staff (no)

739

693

+6.6%

Total senior fee earners at period end (no)

287

243

+18.1%

Average senior fee earners (no)

283

250

+13.2%





 








1. The results for H1 2023 include the impact of the agreement of the VW Emissions Case.

·        Vehicle numbers continued to be managed against forecast activity levels to maximise efficient use of working capital, supporting the stabilisation of net debt in the period. This prudent management nevertheless allowed the Group to increase the average number of vehicles on the road (+24.1%), new claims funded (+13.2%) and revenues from Credit Hire (+22.0%). This process has continued into H2 2024, noting the second half has traditionally been positively impacted by seasonality and an increase in activity levels.

•          The average number of Group vehicles on the road in H1 2024 reached 2,028, some 24.1% above that seen in H1 2023 (1,634). As at 30 June 2024, vehicle numbers stood at 1,772.

The Group has reported a robust performance within legal services, driving the increase in cash collections. Staff numbers have risen to 761 as at 30 June 2024. As previously reported, Housing Disrepair continues to be an ever-increasing contributor to the division, with revenues increasing by 14% in the period. The HDR division settled 1,127 claims in H1 2024 (H1 2023: 884) and now has a portfolio of 3,880 claims (H1 2023: 3,291). The costs of acquisition are written off as incurred, supporting future claim settlements and revenues.

The Group has continued its investment in diesel emissions claims in H1 2024, resulting in active claims against manufacturers including Mercedes Benz, Vauxhall, BMW/Mini, Peugeot/Citroen and Renault/Nissan. By the end of June 2024, the Group had secured claims against Mercedes Benz (where court proceedings have been issued) from approximately 12,000 clients, and a further 25,000 claims against other manufacturers. The potential settlement of these claims is expected to significantly enhance profitability and cashflows, while importantly reducing net debt, although the timing of any negotiations remains uncertain.

 

Commenting on the Interim Results, Alan Sellers, Executive Chairman of Anexo Group plc, said:

"The Group has demonstrated an improvement in performance in the core business, excluding the impact of VW from H1 2023. This is particularly pleasing with a reported 13% increase in new vehicle claims funded and 10% increase in legal staff, the associated costs being expensed as incurred. The results presented here are testament to the quality and expertise of our people, the diversity of the Group's activities and our commitment to investment into future growth and opportunities for the business."

"We are immensely proud to be able to offer social justice and full legal support to our clients and members of the public. 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. The credit hire and housing disrepair teams continue to perform with both strength and with a high level of legal expertise, and carry out invaluable work for members of the public in difficult situations, who would  not otherwise have access to justice." 

"This is an exciting time for the Group, with continued growth in our core business and huge opportunities in class actions and other litigation. As reported today, the Group has secured a meaningful increase in headroom across all our principal funding facilities, allowing the Board to react to opportunities to drive additional shareholder returns. The Board looks to the second half of 2024 and beyond with optimism."

 

- Ends -

 

Results Conference Call

 Alan Sellers, Executive Chairman, and Mark Bringloe, Chief Financial Officer, will provide a live presentation via Investor Meet Company on 20 Aug 2024 at 09:00 BST.

 

The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 19 Aug 2024, 09:00 BST, or at any time during the live presentation.

 

Investors can sign up to Investor Meet Company for free and add to meet Anexo Group plc via:

 

https://www.investormeetcompany.com/anexo-group-plc/register-investor

Investors who already follow Anexo Group plc on the Investor Meet Company platform will automatically be invited. An audio webcast of the conference call with analysts will be available after 12:00 BST today on the Company's website: www.anexo-group.com

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


Zeus Capital Limited

(Nominated Adviser & Broker)

+44 (0) 20 3829 5000

 

Hugh Morgan/ David Foreman / Darshan Patel (Investment Banking)

Fraser Marshall / Simon Johnson (Corporate Broking)



 

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.

 

Bond Turner incorporates a number of other specialist legal divisions. One deals with housing disrepair claims acting for clients living in conditions where there is disrepair, damp and mould, and concentrates mainly on the social housing sector. Another focuses on large loss claims, including professional and clinical negligence and complex medical claims. Bond Turner is also involved in group actions including diesel emissions and is currently pursuing claims against Mercedes and several other major manufacturers.

 

The Group was admitted to trading on AIM in June 2018 with the ticker ANX. For additional information please visit: www.anexo-group.com

 

Executive Chairman's Statement

 

On behalf of the Board, I am pleased to present Anexo's results for the six-month period ended 30 June 2024. The Group has continued to demonstrate the effectiveness of its business model, concentrating firmly on driving growth and investment in new claims, across multiple disciplines, without the need for meaningful increases in borrowings. Vehicle numbers within the credit hire division continue to be actively managed to forecast levels, while increased case settlements within the legal services division, including HDR, have driven the improvement in cash collections.

 

H1 2024 Group Performance

 

The Board has remained focused on the effective use of working capital and has actively managed the business to attain its stated goals of driving growth and improving the conversion of profits to free cash. The Group has delivered a strong performance, in line with management expectations, across all key financial metrics and KPIs over the first six months of the year. Whilst we have reported a reduction in revenues and profitability, reflecting the timing of the agreement of the VW Emissions Claim in H1 2023, which is subject to confidentiality arrangements, the underlying businesses have continued to perform well.

 

Legal Services Division

 

The Group remains committed to its strategy of increasing its claim settlement capacity, thereby maximising cash collections. Accordingly, the Group continued to expand the number of legal staff, which increased by over 10% in the period, reaching 761 at 30 June 2024 (30 June 2023: 690). This figure includes the total of senior fee earners during the period, which stood at 287 as at 30 June 2024 (an increase of over 18% in the period). Investment in new staff inevitably impacts reported performance as costs are incurred on appointment and, as always, revenues from settlements do not reach maturity for some months.

 

Investment in earlier periods has underpinned continued growth in cash collections, which rose 8% in H1 2024 to £83.8 million (H1 2023: £77.4 million). Revenues from the Legal Services division, which strongly converts to cash, reduced in the period (H1 2024: £33.5 million, H1 2023: £48.9 million) reflecting the impact of the VW agreement in H1 2023, excluding which revenues would show an increase over that reported in H1 2023. First half performance was impacted by the 10% increase in headcount, alongside investment in HDR claims (which increased by 17% in the period) and continued investment in diesel emissions claims.

 

Housing Disrepair

 

The Group's HDR division continues to report growth in claim numbers and settlements driving revenues. The number of ongoing claims currently stands at approximately 3,900. HDR continued to be cash generative, with the value of fee income generated from settled claims exceeding the investment in staff and marketing costs for the generation of new claims. Net cash generation totalled £1.4 million in H1 2024 (H1 2023: Net cash inflow £0.4 million).

 

Emissions Litigation

 

Following the positive impact of the Group has felt from its involvement in the Diesel Emissions claims to date, the Group has continued to invest in the marketing of these claims. Bond Turner is now acting for claimants in claims against Mercedes Benz, Vauxhall, BMW/Mini, Peugeot/Citroen and Renault/Nissan.

 

In each of the claims against each of the respective Manufacturer group of defendants, a Group Litigation Order ("GLO") has been made by the Court and Bond Turner's clients will form part of the respective GLOs, which should facilitate a more efficient legal process to achieve a quicker resolution to the cases.

 

The Court is case managing all of the emissions claims in a co-ordinated manner, using the Mercedes Case as a 'lead' GLO case, with the intention that it will set precedent for the resolution of the other manufacturer cases.  The Court has further appointed three other cases to be Additional Lead GLO's ('ALGLOs').  These are essentially cases which will progress alongside Mercedes to act as reserve cases in the event that Mercedes settles, and to involve additional issues that Mercedes does not but which are relevant to the Group Litigation as a whole.  The ALGLOs appointed are Ford, Nissan/Renault and Peugeot/Citroën. There has been a consolidated costs management hearing at which budgets were set for all parties for future costs.

 

By June 2024, court proceedings had been issued and served by Bond Turner against the Mercedes defendants in approximately 12,000 claims, and approximately 25,000 claims against Vauxhall, BMW/Mini, Peugeot/Citroen and Renault/Nissan. All of these cases will be added to the respective GLO Register of Claimants over the summer. Settlement of these claims is expected to significantly enhance profitability and cashflows although the timing of any negotiations remains uncertain.

 

The Court is keen to progress these cases as quickly as possible and has set a rigid timetable to do so:  disclosure is underway and several trial dates have been set with the first being heard in October 2024 involving several manufacturers (Mercedes, BMW, Renault, and Vauxhall), dealing specifically with the issue of whether decisions by the German regulatory body (responsible for giving the vehicles 'type approval' to be manufactured and sold) are binding in England and Wales. 

 

In October 2025 liability will be determined raising legal and factual issues of whether the vehicles contained prohibited defeat devices. To assist the Court, this will include the selection and testing of sample vehicles across several manufacturers including Mercedes, Ford, Renault/Nissan and Peugeot/Citroën manufacturers.

 

Finally in October 2026 a trial will address causation and loss issues. This trial will involve all manufacturers.

 

Credit Hire Division

 

The Group has continued its policy of accepting only those claims generating best value for the Group and has actively managed the number of new claims accepted to levels which are in line with forecasts and which maintain a conversion of profitability to operating cash flows whilst supporting funding into other group activities such as HDR and emissions.

 

Having ended 2023 with record activity levels, and with cash collections rising to new record levels, the Group has increased the number of claims funded throughout H1 2024 compared to H1 2023. Claim acceptances increased by 13.2% from 4,920 in H1 2023 to 5,770 in H1 2024 contributing to the strong growth in revenues which are reported at £35.2 million in H1 2024 (H1 2023: £28.9 million). The strong start to the year means that activity in the second half can continue to be managed with the aim of driving growth without the need for significant increases in borrowings. Credit hire remains the mainstay of the Groups' overall performance and vehicle activity is fundamental to managing revenues and profits. The current position and ongoing level of opportunities supports the Group's expectation of strong performance in the second half of the year.

 

Dividend

 

The Group continues to invest heavily in future opportunities including HDR, Large Loss and Emissions and the Board has therefore resolved that the interests of the Group and its shareholders would be best served by considering the position with regards to payment of a dividend following the preparation of the Group's full year results.

 

Outlook

The focus in the first half of 2024 has been firmly on the conversion of profits to operating cash flows and managing claim acceptances in line with cash collections. The second half of the year is always more significant as a result of seasonality; this has been factored into our forecasts, which indicate that performance in the second half will outperform that of the first half.

 

The continued growth in cash collections, following ongoing investment in the legal teams and IT infrastructure,  allows the Group to increase activity, without the need for significant increases in net debt. Management look to the second half of 2024 and beyond with optimism.

 

Post Balance Sheet Events

 

In August 2024 the Group agreed a £30m loan facility with Callodine Commercial Finance LLC. The Group has drawn down £20m of this facility, to provide further headroom and to repay the loan provided by Blazehill Capital Limited, the refinancing significantly reducing the overall cost of capital to the Group.

 

In August 2024 the Group also agreed an increase in the funding available under the facility provided by Secure Trust Bank PLC. Secure Trust have extended the funding period within the £40m facility limit previously agreed.

 

 

 

 

Alan Sellers

Executive Chairman

20 August 2024

 

 

Unaudited Consolidated Statement of Comprehensive Income

For the period ended 30 June 2024

 



Unaudited

Unaudited

 

 


Half year

ended

Half year

ended

Audited

Year ended

 


30-Jun-24

30-Jun-23

31-Dec-23

 

Note

£'000s

£'000s

£'000s






Revenue

2

68,734

77,772

149,334

Cost of sales


(18,867)

(14,712)

(30,883)

Gross profit


49,867

63,060

118,451



 



Depreciation & profit / loss on disposal


(4,296)

(4,574)

(9,439)

Amortisation


(19)

(37)

(69)

Administrative expenses


(35,241)

(39,176)

(69,170)

Operating profit


10,311

19,273

39,773



 



Net financing expense


(4,415)

(4,085)

(16,733)



 



Profit before tax


5,896

15,188

23,040

Taxation


(1,476)

(5,110)

(7,919)

Profit and total comprehensive income for the period attributable to the owners of the company


4,420

10,078

15,121



 



Earnings per share


 



Basic earnings per share (pence)

3.7

8.6

12.8


 



Diluted earnings per share (pence)

3.7

8.6

12.8

 

The above results were derived from continuing operations.

 

 



 

Unaudited Consolidated Statement of Financial Position

At 30 June 2024

 



Unaudited

Unaudited

Audited

 


30-Jun-24

30-Jun-23

31-Dec-23

Assets

Note

£'000s

£'000s

£'000s

Non-current assets


 



Property, plant and equipment

3

1,894

1,927

1,813

Right-of-use assets

3

12,334

10,216

13,886

Intangible assets


52

66

34

Deferred tax assets


112

112

112



14,392

12,321

15,845

Current assets


 



Trade and other receivables

4

243,187

233,501

234,409

Corporation tax receivable


533

1,161

-

Cash and cash equivalents


3,157

7,362

8,443



246,877

242,024

242,852



 



Total assets


261,269

254,345

258,697



 



Equity and liabilities


 



Equity


 



Share capital


59

59

59

Share premium


16,161

16,161

16,161

Retained earnings


146,129

138,435

143,479

Equity attributable to the owners of the Group

162,349

154,655

159,699



 



Non-current liabilities


 



Other interest-bearing loans and borrowings

5

-

27,760

15,000

Lease liabilities

5

6,539

5,842

7,968

Deferred tax liabilities


-

-

32



6,539

33,602

23,000



 



Current liabilities


 



Other interest-bearing loans and borrowings

5

57,392

30,074

47,070

Lease liabilities

5

7,113

4,857

6,347

Trade and other payables


18,136

20,398

14,811

Corporation tax liability


9,740

10,759

7,770



92,381

66,088

75,998



 



Total liabilities


98,920

99,690

98,998

 


 



Total equity and liabilities


261,269

254,345

258,697

 


 








 

 



 

Unaudited Consolidated Statement of Changes in Equity

For the period ended 30 June 2024

 



Share capital

Share

Premium

Retained

earnings

Total

 


£'000s

£'000s

£'000s

£'000s

 






At 1 January 2024


59

16,161

143,479

159,699

Profit for the period and total comprehensive income

-

-

4,420

4,420

Dividends


-

-

(1,770)

(1,770)







At 30 June 2024

 

59

16,161

146,129

162,349

 






At 1 January 2023


59

16,161

130,127

146,347

Profit for the period and total comprehensive income


-

10,078

10,078

Dividends


-

-

(1,770)

(1,770)







At 30 June 2023


59

16,161

138,435

154,655

Profit for the period and total comprehensive income

-

-

5,044

5,044







At 31 December 2023


59

16,161

143,479

159,699






 










 



 

Unaudited Consolidated Statement of Cash Flows

For the period ended 30 June 2024



Unaudited

Unaudited

 

 


Half year

ended

Half year

ended

Audited

Year ended

 


30-Jun-24

30-Jun-23

31-Dec-23

 

 

£'000s

£'000s

£'000s

Cash flows from operating activities





Profit for the period


4,420

10,078

15,121

Adjustments for:


 



Depreciation and profit / loss on disposal


4,296

4,574

9,439

Amortisation


19

37

69

Financial expense


4,415

4,085

16,733

Taxation


1,476

5,110

7,919



14,626

23,884

49,281

Working capital adjustments


 



Increase in trade and other receivables


(8,778)

(11,229)

(12,138)

Increase in trade and other payables


3,325

7,173

1,586

Cash generated from operations


9,173

19,828

38,729



 



Interest paid


(4,415)

(4,085)

(16,733)

Tax paid


(70)

-

(4,605)

Net cash from in operating activities


4,688

15,743

17,391



 



Cash flows from investing activities


 



Proceeds from sale of property, plant and equipment


860

531

757

Acquisition of property, plant and equipment

(605)

(717)

(1,277)

Investment in intangible fixed assets

(38)

(31)

(32)

Net cash from /  (used in) investing activities


217

(217)

(552)



 



Cash flows from financing activities


 



Proceeds from new loans


4,108

8,946

20,409

Dividends paid


(1,770)

(1,770)

(1,770)

Repayment of borrowings


(8,240)

(19,117)

(26,931)

Lease payments


(4,289)

(5,272)

(9.153)

Net cash from financing activities


(10,191)

(17,213)

(17,445)



 



Net decrease in cash and cash equivalents

(5,286)

(1,687)

(606)

Cash and cash equivalents at 1 January

 

8,443

9,049

9,049

Cash and cash equivalents at period end

 

3,157

7,362

8,443



 





 

 

Unaudited Notes to the Interim Statements

For the period ended 30 June 2024

 

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 2023 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 2024 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 2025. 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, which includes the large loss department and any balance or trading associated with emissions.

Management monitors the operating results of business segments separately for the purpose of making decisions about resources to be allocated and of assessing performance.

Other Legal Services, housing disrepair and large loss, are subsets of Legal Services. We have however, distinguished the performance of housing disrepair from within Legal Services as this department of the Legal Services segment is an area where the Group is investing heavily, is a focus for the Group at present and into the future and allows readers of the financial statements to understand the contribution housing disrepair has to the overall Group performance. The housing disrepair division continues to grow and as the results become more significant to the overall Group performance this division may well become a reportable segment, in accordance with IFRS 8, in its own right, this could be reported in the 2024 financial statements.

 

Half year ended 30 June 2024

 


Credit Hire

Other Legal Services

Housing Disrepair

Group and Central Costs

Consolidated

 

 

£'000s

£'000s

£'000s

£'000s

£'000s

 

Revenues

 





 

Third party

35,205

26,760

6,769

-

68,734

 

Total revenues

35,205

26,760

6,769

-

68.734

 







 

Profit before taxation

4,100

1,816

1,475

(1,495)

5,896

 







 

Net cash from operations

3,806

731

1,353

(1,202)

4,688

 







 

Depreciation

3,637

678

-

-

4,315

 







 

Segment assets

175,595

71,606

13,279

789

261,269

 

 






 

Capital expenditure

261

344

-

-

605

 







 

Segment liabilities

47,671

46,655

-

4,594

98,920

 








 

 







 




























 






Half year ended 30 June 2023

 


Credit Hire

Other Legal Services

Housing Disrepair

Group and Central Costs

Consolidated

 

 

£'000s

£'000s

£'000s

£'000s

£'000s

 

Revenues

 





 

Third party

28,858

42,968

5,946

-

77,772

 

Total revenues

28,858

42,968

5,946

-

77,772

 







 

Profit before taxation

2,233

11,578

2,639

(1,262)

15,188

 







 

Net cash from operations

4,153

12,233

372

(1,015)

15,743

 







 

Depreciation

3,995

616

-

-

4,611

 







 

Segment assets

170,295

71,814

10,872

1,364

254,345

 







 

Capital expenditure

420

297

-

-

717

 







 

Segment liabilities

56,339

42,887

-

464

99,690

 





















 

Year ended 31 December 2023


Credit Hire

Other Legal Services

 

Housing Disrepair

 

Group and Central Costs

Consolidated

 

 

£'000s

£'000s

£'000s

£'000s

£'000s

 

Revenues

 





 

Third party

60,778

75,875

12,681

-

149,334

 

Total revenues

60,778

75,875

12,681

-

149,334

 







 

Profit before taxation

6,580

13,048

6,416

(3,004)

23,040

 







 

Net cash from operations

11,434

5,642

3,067

(2,752)

17,391

 







 

Depreciation

8,076

1,432

-

-

9,508

 







 

Segment assets

177,346

68,131

12,454

766

258,697

 







 

Capital expenditure

872

405

-

-

1,277

 







 

Segment liabilities

58,223

38,261

-

2,514

98,998

 



















 

 



 

 

3.                  Property, Plant and Equipment

 


Property

Fixtures

Fittings &

Right of

Office

 


Improvement

Equipment

Use assets

Equipment

Total

 

£'000s

£'000s

£'000s

£'000s

£'000s

Cost

 





At 1 January 2023

637

3,444

27,986

918

32,985

Additions

-

294

2,654

2

2,950

Disposals

(274)

(160)

(8,268)

(291)

(8,993)

At 30 June 2023

363

3,578

22,372

629

26,942

Additions

-

107

8,266

271

8,644

Disposals

(135)

-

(3,880)

(117)

(4,132)

At 31 December 2023

228

3,685

26,758

783

31,454

Additions

-

113

3,457

114

3,684

Disposals

-

-

(2,917)

-

(2,917)

At 30 June 2024

228

3,798

27,298

897

32,221







Depreciation

 





At 1 January 2023

357

2,014

15,329

556

18,256

Charge for period

20

314

3,969

60

4,363

Eliminated on disposal

(261)

(121)

(7,147)

(291)

(7,820)

At 30 June 2023

116

2,207

12,151

325

14,799

Charge for the period

15

320

3,946

80

4,361

Disposals

(71)

-

(3,225)

(109)

(3,405)

At 31 December 2023

60

2,527

12,872

296

15,755

Charge for the period

11

280

4,021

78

4,390

Disposals

-

-

(2,152)

-

(2,152)

At 30 June 2024

71

2,807

14,741

374

17,993













Carrying amount

 





At 30 June 2024

157

991

12,557

523

14,228







At 31 December 2023

168

1,158

13,886

487

15,699







At 30 June 2023

247

1,371

10,221

304

12,143







 












 



 

 

4.         Trade and Other Receivables

 



Jun-24

Jun-23

Dec-23

 


£'000s

£'000s

£'000s

 





Gross claim value (invoiced)


399,622

370,711

386,286

Settlement adjustment on initial recognition

(210,807)

(174,644)

(205,937)

Trade receivables before impairment provision and expected credit loss

188,815

196,067

180,349

Provision for impairment of trade receivables

(20,836)

(27,654)

(20,812)

Net trade receivables


167,979

168,413

159,537

Accrued income


72,477

59,861

70,091

Prepayments


1,416

6,311

1,407

Tax and social security


-

-

449

Other receivables


1,315

885

2,925



 





243,187

233,501

234,409






Credit risk arises principally from the Group's trade and other receivables. It is the risk that the counterparty fails to discharge its obligation in respect of the instrument. The maximum exposure to credit risk equals the carrying value of these items in the financial statements.

 

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-24

Jun-23

Dec-23



£'000s

£'000s

£'000s

Non-current loans and borrowings

 




Revolving credit facility


-

10,000

-

Other borrowings


-

17,760

15,000

Lease liabilities


6,539

5,842

7,968



6,539

33,602

22,968



 

Current loans and borrowings

 

 



Invoice discounting facility


27,140

24,598

27,858

Revolving credit facility


10,000

-

10,000

Other borrowings


20,797

5,476

9,212

Lease liabilities


6,568

4,857

6,347



64,505

34,931

53,417

 

 

 



Total Borrowings

 

71,044

68,533

76,385














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. The Group has recently secured an increase in availability for the facility which is committed through to July 2027. 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, with a cross-company guarantee provided by Anexo Group Plc. 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 March 2022 the group secured a loan of £7.5 million from Blazehill Capital Finance Limited, with an additional £7.5 million drawn in September 2022. The loan is non amortising and committed for a three-year period. Interest is charged and paid monthly at 13% above the central bank rate. The facility is secured by way of a fixed charge dated 29 March 2022, over all present and future property, assets and rights (including uncalled capital) of Direct Accident Management Limited, with a cross-company guarantee provided by Anexo Group Plc. The Group has recently secured alternative funding from Callodine Commercial Finance LLC to repay Blazehill, provide additional headroom and which significantly reduces the overall cost of capital of the Group.

 

In June 2023 a loan of £2.8 million was sourced from a number of high-net-worth individuals and certain of the principal shareholders and directors of the Group to support the ongoing investment in 2023 in emissions opportunities. A further £0.7 million was provided in January 2024. The terms of the loan are that interest accrues at the rate of 10% per annum. In addition to the interest charges the loan attracts a share of the proceeds generated for the Group.







 

- Ends -

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