TIDMANX
RNS Number : 9794J
Anexo Group PLC
22 August 2023
For immediate release 22 August 2023
Anexo Group plc
('Anexo' or the 'Group')
Interim Results for the six months ended 30 June 2023
"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 2023 ('H1 2023' or the
'period').
Financial Highlights
H1 2023 H1 2022 Movement
Revenue GBP77.8 million GBP68.6 million +13.4%
Operating profit GBP19.3 million GBP16.1 million +19.9%
Profit before tax GBP15.2 million GBP13.6 million +11.8%
Cash collection GBP77.4 million GBP67.9 million +14.0%
Basic EPS 8.6 pence 9.3 pence -7.5%
-- A significant reduction in Net Debt (including lease liabilities) was reported in the period
(GBP11.9 million). Net Debt as at 30 June 2023 stood at GBP61.2 million (30 June 2022: GBP74.2
million, 31 December 2022: GBP73.1 million).
-- Cash collections from settled cases increased 14% to GBP77.4 million (H1 2022: GBP67.9
million), excluding the legal fees associated with the Volkswagen AG ('VW') Emissions Claim.
-- The Group generated GBP15.7 million in Net Cash from Operating Activities (H1 2022: Net
Cash Used in Operating Activities: GBP5.1 million), a total improvement of GBP20.8 million.
-- Revenue increased 13% to GBP77.8 million (H1 2022: GBP68.6 million), reflecting the agreement
reached in the VW Emissions Claim and increased legal fee income from both Credit Hire and
Housing Disrepair ("HDR") claim settlements.
-- Operating profit increased 19% to GBP19.3 million (H1 2022: GBP16.1 million) due to improved
cash collections from all divisions in addition to the proceeds of the VW agreement, whilst
the number of new credit hire cases has been actively managed.
Operational Highlights
-- The Group has shown robust growth within legal services,
driving the increase seen in cash collections. HDR continues to be
an ever-increasing element, with revenues increasing by over 25%.
The HDR division settled 884 claims in H1 2023 (H1 2022: 556) and
now has a portfolio of 3,291 claims (H1 2022: 2,218).
-- The results for the period include the agreement reached in
the VW emissions case. The terms of the agreement are subject to
confidentiality restrictions. The Group announced on 5 June 2023
that the agreement had resulted in a net positive cash position to
Anexo of GBP7.2 million.
-- The Group continued its investment in litigation concerning
the Mercedes Benz Emissions Claim, with a total of over 12,000
claimants now forming part of the group action.
-- Vehicle numbers continued to be carefully managed to maximise
efficient use of working capital, supporting the significant
reduction in Net Debt. Strong growth is forecast for H2 2023
resulting from a steady increase in vehicle numbers.
-- The average number of Group vehicles on the road in H1 2023
reached 1,634, some 20% below that seen in H1 2022 (2,034). Vehicle
numbers at 18 August 2023 totalled 1,795.
KPIs H1 2023 H1 2022 Movement
Cash collections from settled
cases (GBP'000s) 77,413 67,931 +14.0%
Number of hire cases settled 4,369 3,563 +22.6%
Number of new hire cases funded 4,920 5,082 -3.2%
Completed vehicle hires 4,689 5,501 -14.8%
Number of vehicles on hire
at period end 1961 1947 +0.1%
Legal staff employed at period
end 690 633 +9.0%
Number of HDR cases at period
end 3,291 2,218 +48.4%
Number of HDR cases settled 884 556 +59.0%
Commenting on the Interim Results, Alan Sellers, Executive
Chairman of Anexo Group plc, said:
"The Board has been focused on delivering a meaningful reduction
in net debt and increasing cash collections during the first half
of the year. The results presented here are testament to the
quality of our people, the ever-increasing 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.
"Having demonstrated our ability to drive the business for cash
generation, we are expecting growth in vehicle numbers, revenues
and profits in the second half of the year, without the need to
fund this growth from our current debt facilities. As cash
collections continue to increase, we will be able to invest further
and drive growth across all our divisions including HDR and
emissions claims.
"The strong progress being made in HDR and group emissions
litigation underpins the forecast growth in the core business. The
Board remains confident of meeting market expectations for the
year."
- Ends -
Results Conference Call
An analyst conference call will be held at 09:30 BST today, 22
August 2023. 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:
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, Interim Chief Financial Officer
Nick Dashwood Brown, Head of Investor Relations
WH Ireland Limited
(Nominated Adviser & Joint Broker)
Chris Hardie / Hugh Morgan/ Darshan Patel (Corporate) +44 (0) 20 7220 1666
Fraser Marshall / Harry Ansell (Broking) www.whirelandplc.com/capital-markets
Zeus
(Joint Broker)
David Foreman / Louisa Waddell (Investment Banking) +44 (0) 20 3829 5000
Simon Johnson (Corporate Broking) w ww.zeuscapital.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
Executive Chairman's Statement
On behalf of the Board, I am pleased to announce Anexo's results
for the six-month period ended 30 June 2023. The Group has
continued to demonstrate the effectiveness of its business model,
concentrating firmly on the transition of the Group to a cash
generative position and the achievement of a reduction in net debt.
Vehicle numbers within the credit hire division have been actively
managed, while increased case settlements within the legal services
division, including HDR, have driven the rise in cash
collections.
The strong performance in the first half of the year will enable
the Group to continue accepting an increased number of claims in
the second half leading to an improvement in both revenues and
profitability without the need to increase debt.
H1 2023 Group Performance
Anexo has actively managed the business to attain its stated
goals of reducing net debt and improving the conversion of profits
to free cash. The Group has delivered a strong performance across
all key financial metrics and KPIs over the first six months of the
year. Having increased case settlements alongside the VW Emissions
agreement, Group revenues in H1 2023 increased by 13% to GBP77.8
million (H1 2022: GBP68.6 million) and profit before tax rose by
11% to GBP15.2 million (H1 2022: GBP13.6 million).
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 remained broadly unchanged during the
period, standing at 243 as at 30 June 2023. The overall number of
legal staff rose by 9% to 690 (H1 2022: 633).
Investment during 2022 has underpinned continued growth in cash
collections, which rose 14% in H1 2023 to a total of GBP77.4
million (H1 2022: GBP67.9 million), excluding any value from the VW
Emissions agreement. Revenues from the Legal Services division,
which strongly converts to cash, more than doubled in the period to
GBP43.0 million in H1 2023 (H1 2022: GBP21.4 million), this figure
includes the proceeds from the VW agreement. Profit before taxation
increased sharply from GBP1.2 million in H1 2022 to GBP11.6 million
in H1 2023, reflecting an improvement in the core business
activities and the VW Emissions agreement in the period.
Housing Disrepair
The Group's HDR division continues to show significant growth.
The number of ongoing claims currently stands at approximately
3,300. HDR is now cash generative as the value of fee income
generated from settled claims exceeds the investment in staff and
marketing costs for the generation of new claims. Net cash
generation totalled GBP0.4 million in H1 2023 (H1 2022: Net cash
outflow GBP0.3 million). The current claims portfolio is expected
to contribute to an improvement in performance in the second half
of the year and beyond.
With an increase in revenues, HDR reported a profit of GBP2.6
million in the period (H1 2022: GBP2.4 million) having invested
GBP2.2 million in new claims (H1 2022: GBP1.7 million). These
marketing costs continue to be written off as incurred.
Emissions Litigation
The advocacy team reached an agreement in the claim against VW
and its subsidiaries. The terms of the agreement are subject to
confidentiality restrictions; the Group announced on 5 June 2023
that the agreement had resulted in a net positive cash position to
Anexo of GBP7.2 million.
The Group continues to pursue litigation in other emissions
cases, particularly in relation to Mercedes Benz. The Group
currently has approximately 12,000 Mercedes cases (H1 2022:
approximately 4,000 Mercedes cases).
Management believes there is a significant continued opportunity
for investment in emissions claims against specific vehicle
manufacturers. Accordingly, the Group has earmarked a continued
ongoing level of investment for the second half of the year and
beyond. Investment for the current year is being funded from an
additional GBP2.8 million, provided to the Group in part by certain
of the principal shareholders and directors of the Group.
Credit Hire Division
Whilst demand for vehicles has remained strong throughout the
period, the Group has actively managed the number of new claims
accepted to levels which maximise the conversion of profitability
to operating cash flow whilst supporting funding into other group
activities such as HDR and emissions. This also provides a strong
and diverse platform for future opportunities including credit hire
opportunities.
Having increased cash collections month on month to new record
levels, the Group has increased the number of claims funded
throughout H1 2023; vehicle numbers increased to 1,961 at 30 June
2023, some 20% above the average levels seen in the first half.
Vehicle numbers are fundamental to managing revenues and profits,
and this increase supports the Group's expectation of strong growth
in the second half of the year.
Against the backdrop of strong demand, the considered careful
management of the fleet has seen a consequent decline in Credit
Hire revenue, reported at GBP28.9 million in H1 2023 (H1 2022:
GBP42.5 million), and a resultant reduction in profit before tax to
GBP2.2 million. Completed vehicle hires reduced to 4,689 in H1 2023
(H1 2022: 5,501) but with vehicle numbers now approaching 2,000,
the expectation is that activity levels will rise driving a
significant improvement in performance for the Credit Hire Division
in the second half of the year.
Dividend
The Group continues to invest heavily in future opportunities
including HDR 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 2023 has been firmly on the
conversion of profits to operating cash flows. The Group has shown
robust growth during the period and plans to continue to optimise
cash generation in the second half, whilst increasing activity
levels within the Credit Hire division to levels previously seen in
the first half of 2022.
Growth in cash collections allows the Group to increase
activity, including continued investment in HDR and additional
emissions claims, without the need for increases in net debt. The
focus for the second half is to ensure this investment is
self-funded. Management has confidence in meeting market
expectations for the year.
Alan Sellers
Executive Chairman
22 August 2023
Consolidated Statement of Comprehensive Income
For the unaudited period ended 30 June 2023
Unaudited Unaudited
Half year Half year Audited
ended ended Year ended
30-Jun-23 30-Jun-22 31-Dec-22
Note GBP'000s GBP'000s GBP'000s
Revenue 2 77,772 68,610 138,329
Cost of sales (14,712) (16,253) (32,553)
---------- ---------- ------------
Gross profit 63,060 52,357 105,776
Depreciation & profit / loss
on disposal (4,574) (5,561) (10,436)
Amortisation (37) (74) (117)
Administrative expenses (39,176) (30,759) (64,982)
Operating profit before exceptional
items 19,273 15,963 30,241
---------- ---------- ------------
Share based payment credit - 175 175
Operating profit 19,273 16,138 30,416
---------- ---------- ------------
Net financing expense (4,085) (2,500) (6,323)
---------- ---------- ------------
Profit before tax 15,188 13,638 24,093
Taxation (5,110) (2,734) (4,616)
Profit and total comprehensive
income for the year attributable
to the owners of the company 10,078 10,904 19,477
---------- ---------- ------------
Earnings per share
Basic earnings per share (pence) 8.6 9.3 16.6
---------- ---------- ------------
Diluted earnings per share (pence) 8.6 9.3 16.6
---------- ---------- ------------
The above results were derived from continuing operations.
Consolidated Statement of Financial Position
Unaudited at 30 June 2023
Unaudited Unaudited Audited
30-Jun-23 30-Jun-22 31-Dec-22
Assets Note GBP'000s GBP'000s GBP'000s
Non-current assets
Property, plant and equipment 3 1,927 2,323 2,072
Right-of-use assets 10,216 16,816 12,657
Intangible assets 66 112 71
Deferred tax assets 112 112 112
---------- ---------- ----------
12,321 19,363 14,912
---------- ---------- ----------
Current assets
Trade and other receivables 4 233,501 209,817 222,272
Corporation tax receivable 1,161 - 606
Cash and cash equivalents 7,362 1,247 9,049
242,024 211,176 231,927
---------- ---------- ----------
Total assets 254,345 230,427 246,839
---------- ---------- ----------
Equity and liabilities
Equity
Share capital 59 59 59
Share premium 16,161 16,161 16,161
Retained earnings 138,435 121,554 130,127
---------- ---------- ----------
Equity attributable to the owners
of the Group 154,655 137,774 146,347
---------- ---------- ----------
Non-current liabilities
Other interest-bearing loans
and borrowings 5 27,760 20,710 25,000
Lease liabilities 5,842 8,462 7,176
Deferred tax liabilities - - 32
33,602 29,172 32,208
---------- ---------- ----------
Current liabilities
Other interest-bearing loans
and borrowings 5 30,074 37,235 43,594
Lease liabilities 4,857 9,018 6,403
Trade and other payables 20,398 9,966 13,225
Corporation tax liability 10,759 7,262 5,062
66,088 63,481 68,284
---------- ---------- ----------
Total liabilities 99,690 92,653 100,492
---------- ---------- ----------
Total equity and liabilities 254,345 230,427 246,839
---------- ---------- ----------
Consolidated Statement of Changes in Equity
For the unaudited period ended 30 June 2023
Share Retained
Share capital premium Share based payment reserve earnings Total
GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s
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
-------------- ----------- ------------------------------ ---------- ---------
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
Transfer of share based payment
reserve - - (1,902) 1,902 -
Share based payment charge - - (175) - (175)
Dividends - - - (1,180) (1,180)
At 30 June 2022 59 16,161 - 121,554 137,774
Profit for the period and total
comprehensive income - - - 8,573 8,573
At 31 December 2022 59 16,161 - 130,127 146,347
-------------- ----------- ------------------------------ ---------- ---------
Anexo Group Plc
Consolidated Statement of Cash Flows
For the unaudited period ended 30 June 2023
Unaudited Unaudited
Half year Half year Audited
ended ended Year ended
30-Jun-23 30-Jun-22 31-Dec-22
GBP'000s GBP'000s GBP'000s
Cash flows from operating
activities
Profit for the year 10,078 10,904 19,477
Adjustments for:
Depreciation and profit
/ loss on disposal 4,574 5,561 10,436
Amortisation 37 74 117
Financial expense 4,085 2,500 6,323
Share based payment credit - (175) (175)
Taxation 5,110 2,734 4,616
---------- ---------- ------------
23,884 21,598 40,794
Working capital adjustments
Increase in trade and other
receivables (11,229) (21,682) (34,138)
(Decrease) / increase in
trade and other payables 7,173 (2,667) 590
---------- ---------- ------------
Cash generated from operations 19,828 (2,751) 7,246
Interest paid (4,085) (2,380) (5,722)
Tax paid - - (4,656)
Net cash from / (used)
in operating activities 15,743 (5,131) (3,132)
---------- ---------- ------------
Cash flows from investing
activities
Proceeds from sale of property,
plant and equipment 531 722 1,579
Acquisition of property, plant
and equipment (717) (1,285) (1,186)
Investment in intangible fixed
assets (31) - -
Net cash (used in) / from
investing activities (217) (563) 393
---------- ---------- ------------
Cash flows from financing
activities
Proceeds from new loans 8,946 10,265 24,430
Dividends paid (1,770) (1,180) (1,180)
Repayment of borrowings (19,117 (4,753) (8,749)
Lease payments (5,272) (4,953) (10,275)
Net cash from financing
activities (17,213) (621) 4,226
---------- ---------- ------------
Net (decrease) / increase in
cash and cash equivalents (1,687) (6,315) 1,487
Cash and cash equivalents
at 1 January 9,049 7,562 7,562
Cash and cash equivalents
at period end 7,362 1,247 9,049
---------- ---------- ------------
Anexo Group Plc
Notes to the Interim Statements
For the unaudited period ended 30 June 2023
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 2022 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 2023 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 2024. 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.
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 and Housing Disrepair, are subsets of Legal
Services. We have however, distinguished the performance of Housing
Disrepair from within Legal Services as this division 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 segment in its own right, this could be reported in the
2023 financial statements.
Half year ended 30 June 2023
Housing Group and
Credit Other Legal Disrepair Central
Hire Services Costs Consolidated
GBP'000s GBP'000s GBP'000s GBP'000s GBP'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
----------- -------------- ------------- ------------ ---------------
Half year ended 30 June 2022
Housing Group and
Credit Other Legal Disrepair Central
Hire Services Costs Consolidated
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 1,249 2,353 (905) 13,638
----------- -------------- ------------- ------------ -----------------
Net cash from operations (3,990) 950 (257) (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 31,079 - 254 92,653
----------- -------------- ------------- ------------ -----------------
Year ended 31 December 2022
Housing Group and
Credit Other Legal Disrepair Central
Hire Services Costs Consolidated
GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s
Revenues
Third party 74,681 54,311 9,337 - 138,329
Total revenues 74,681 54,311 9,337 - 138,329
---------- ------------ ------------ ------------ ---------------
Profit before taxation 8,887 15,400 4,694 (4,888) 24,093
---------- ------------ ------------ ------------ ---------------
Net cash from
operations (2,310) 3,390 258 (4,470) (3,132)
---------- ------------ ------------ ------------ ---------------
Depreciation 9,271 1,282 - - 10,553
---------- ------------ ------------ ------------ ---------------
Segment assets 174,503 58,562 8,084 5,690 246,839
---------- ------------ ------------ ------------ ---------------
Capital expenditure 980 206 - - 1,186
---------- ------------ ------------ ------------ ---------------
Segment liabilities 66,507 33,985 - - 100,492
---------- ------------ ------------ ------------ ---------------
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 2022 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
Additions - 126 1,181 23 1,330
Disposals (9) - (4,708) - (4,717)
------------ ---------- ----------- ---------- -----------
At 31 December
2022 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 22,370 629 26,942
------------ ---------- ----------- ---------- -----------
Depreciation
At 1 January 2022 322 1,418 12,748 437 14,925
Charge for year 16 288 5,300 55 5,659
Eliminated on disposal - - (3,351) - (3,351)
At 30 June 2022 338 1,706 14,697 492 17,233
Charge for the
year 19 308 4,681 64 5,072
Disposals - - (4,049) - (4,049)
------------ ---------- ----------- ---------- -----------
At 31 December
2022 357 2,014 15,329 556 18,256
Charge for the
year 20 314 3,969 60 4,363
Disposals (261) (121) (7,147) (291) (7,820)
At 30 June 2023 116 2,207 12,151 325 14,799
------------ ---------- ----------- ---------- -----------
Carrying amount
At 30 June 2023 247 1,371 10,221 304 12,143
------------ ---------- ----------- ---------- -----------
At 31 December
2022 280 1,430 12,657 362 14,729
------------ ---------- ----------- ---------- -----------
At 30 June 2022 308 1,612 16,816 403 19,139
------------ ---------- ----------- ---------- -----------
4. Trade and Other Receivables
Jun-23 Jun-22 Dec-22
GBP'000s GBP'000s GBP'000s
Trade receivables - gross
claim value 370,711 370,433 393,560
Settlement adjustment on initial
recognition (174,644) (179,759) (203,518)
Provision for impairment of
trade receivables (27,654) (26,207) (24,674)
---------- ---------- ----------
Net trade receivables 168,413 164,467 165,368
Accrued income 59,861 44,177 54,778
Prepayments 6,311 821 1,603
Other debtors 885 352 523
233,501 209,817 222,272
---------- ---------- ----------
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-23 Jun-22 Dec-22
GBP'000s GBP'000s GBP'000s
Non-current loans and borrowings
Revolving credit facility 10,000 10,000 10,000
Other borrowings 17,760 10,710 15,000
Lease liabilities 5,842 8,462 7,176
----------- ----------- -----------
33,602 29,172 32,176
----------- ----------- -----------
Current loans and borrowings
Invoice discounting facility 24,598 31,364 30,562
Other borrowings 5,476 5,871 13,032
Lease liabilities 4,857 9,018 6,403
----------- ----------- -----------
34,931 46,253 49,997
----------- ----------- -----------
Total Borrowings 68,533 75,425 82,173
----------- ----------- -----------
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 GBP5.0
million 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, this loan was fully repaid by 30 June 2023.
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 July 2020 Anexo Group Plc secured a loan of GBP2.1 million
from a specialist 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. Having reached agreement in the VW Emissions Class Action,
this loan was fully repaid in the period to 30 June 2023.
In November 2021 a further GBP3.0 million loan was sourced from
certain of the principal shareholders and directors of the Group to
support the marketing investment in 2022 in 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. Having reached an agreement in the VW
Emissions Class Action, this loan was partially repaid in the
period to 30 June 2023 with any residual amount due upon successful
conclusion of the Mercedes Benz Emissions Claim.
In March 2022 the Group secured a loan of GBP7.5 million from
Blazehill Capital Finance Limited, with an additional GBP7.5
million drawn in September 2022, the total balance drawn at 30 June
2023 was GBP15.0 million. 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.
In June 2023 a loan of GBP2.8 million was sourced from certain
of the principal shareholders and directors of the Group to support
further marketing in the Mercedes Benz Emissions Claim and other
emissions opportunities. 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 generated for the Group from the
Mercedes Benz Emissions Claim.
- Ends -
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END
IR FLFIRTDILFIV
(END) Dow Jones Newswires
August 22, 2023 02:01 ET (06:01 GMT)
Grafico Azioni Anexo (LSE:ANX)
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Grafico Azioni Anexo (LSE:ANX)
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