REG - Anexo Group PLC - Interim Results for the six months ended 30/06/23
22/08/2023 07:15
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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 £77.8 million £68.6 million +13.4%
Operating profit £19.3 million £16.1 million +19.9%
Profit before tax £15.2 million £13.6 million +11.8%
Cash collection £77.4 million £67.9 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 (£11.9 million). Net Debt as at 30
June 2023 stood at £61.2 million (30 June 2022: £74.2 million, 31 December
2022: £73.1 million).
· Cash collections from settled cases increased 14% to
£77.4 million (H1 2022: £67.9 million), excluding the legal fees associated
with the Volkswagen AG ('VW') Emissions Claim.
· The Group generated £15.7 million in Net Cash from
Operating Activities (H1 2022: Net Cash Used in Operating Activities: £5.1
million), a total improvement of £20.8 million.
· Revenue increased 13% to £77.8 million (H1 2022:
£68.6 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 £19.3 million (H1
2022: £16.1 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 £7.2
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 (£'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/
(https://www.anexo-group.com/) . Please contact Nick Dashwood Brown, Head of
Investor Relations, at nick@anexo-group.com (mailto: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
(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, 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
(https://url.avanan.click/v2/___https:/eu-west
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Zeus
(Joint Broker) +44 (0) 20 3829 5000
David Foreman / Louisa Waddell (Investment Banking) w (http://www.arden-partners.co.uk) ww.zeuscapital.co.uk
(http://www.arden-partners.co.uk)
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.
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 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
£77.8 million (H1 2022: £68.6 million) and profit before tax rose by 11% to
£15.2 million (H1 2022: £13.6 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 £77.4 million (H1 2022: £67.9
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 £43.0 million in H1 2023 (H1 2022: £21.4 million),
this figure includes the proceeds from the VW agreement. Profit before
taxation increased sharply from £1.2 million in H1 2022 to £11.6 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 £0.4 million in H1 2023 (H1 2022: Net cash
outflow £0.3 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 £2.6 million in the
period (H1 2022: £2.4 million) having invested £2.2 million in new claims
(H1 2022: £1.7 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 £7.2 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 £2.8 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
£28.9 million in H1 2023 (H1 2022: £42.5 million), and a resultant reduction
in profit before tax to £2.2 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 £'000s £'000s £'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 10,078 10,904 19,477
of the company
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 £'000s £'000s £'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 capital Share Share based payment reserve Retained Total
premium earnings
£'000s £'000s £'000s £'000s £'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
£'000s £'000s £'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
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
Half year ended 30 June 2022
Credit Hire Other Legal Services Housing Disrepair Group and Central Costs Consolidated
£'000s £'000s £'000s £'000s £'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
Credit Hire Other Legal Services Consolidated
Housing Disrepair Group and Central Costs
£'000s £'000s £'000s £'000s £'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
Property Fixtures Right of Office
Fittings &
Improvement Equipment Use assets Equipment Total
£'000s £'000s £'000s £'000s £'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
£'000s £'000s £'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
£'000s £'000s £'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 £5.0 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 £2.1 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 £3.0 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 £7.5 million from Blazehill Capital
Finance Limited, with an additional £7.5 million drawn in September 2022, the
total balance drawn at 30 June 2023 was £15.0 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 £2.8 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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