REG - Anexo Group PLC - Interim results for the period ended 30 June 2024
20/08/2024 07:00
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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
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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 (http://www.anexo-group.com)
For further enquiries:
Anexo Group plc +44 (0) 151 227 3008
www.anexo-group.com (http://www.anexo-group.com)
Alan Sellers, Executive Chairman
Mark Bringloe, Chief Financial Officer
Nick Dashwood Brown, Head of Investor Relations
Zeus Capital Limited +44 (0) 20 3829 5000
(Nominated Adviser & Broker)
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
(http://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 Half year Audited
ended ended 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 4,420 10,078 15,121
owners of the company
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 Retained Total
Premium earnings
£'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 Half year Audited
ended ended 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 Consolidated
Housing Disrepair Group and Central Costs
£'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 Right of Office
Fittings &
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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