REG - Anexo Group PLC - Interim Results
20/09/2022 07:00
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RNS Number : 9257Z Anexo Group PLC 20 September 2022
For immediate release 20 September 2022
Anexo Group plc
('Anexo' or the 'Group')
Interim Results for the six months ended 30 June 2022
"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 2022 ('H1 2022' or the 'period')
Financial Highlights
H1 2022 H1 2021 Movement
Revenue £68.6 million £48.3 million +42.0%
Operating profit £16.1 million £10.4 million +54.8%
Profit before tax £13.6 million £8.9 million +52.8%
Net assets £137.8 million £117.8 million +17.0%
Cash collection £67.9 million £56.7 million +19.8%
Basic EPS 9.3 pence 6.1 pence +52.5%
· Revenue increased 42% to £68.6 million (H1 2021: £48.3 million) from
increased vehicles on hire and growth in legal fee earners
· Operating profit increased 55% per cent to £16.1 million (H1 2021: £10.4
million) from improved cash collections, leverage of overhead, maximising
opportunities within credit hire and an improved vehicle mix
· Cash collections from settled cases increased 20% to £67.9 million (H1 2021:
£56.7 million) with strong sales growth driving an increase in Trade
Receivables to £209.8 million (30 June 2021: £160.5 million, 31 December
2021: £188.1 million)
· Net debt (including lease liabilities) as 30 June 2022: £74.2 million (30
June 2021: £44.4 million, 31 December 2021: £62.0 million)
Operational Highlights
· The Group has shown robust growth across both its divisions with
strong growth in Group vehicle numbers and high-quality senior fee earner
recruitment in the legal division
· Vehicle numbers which grew rapidly in the first half of the year are
now being carefully managed to maximise efficient use of working capital
· The number of Group vehicles on the road on 31st August 2022 was
1,828
· The proportion of the vehicle fleet composed of motorcycles continues
to increase following the agreement with MCE Insurance in the fourth quarter
of 2021
· Good progress is being made with the Volkswagen AG ("VW") emissions
case ahead of the scheduled court date in early 2023. The Group has committed
the £2 million of funding raised at the end of 2021 towards the acquisition
of Mercedes emissions cases. Total cumulative investment in both VW and
Mercedes cases is £5.8 million, all of which has been expensed including
£1.3 million in the first half of 2022 (H1 2021: £0.5 million)
· The Group's burgeoning Housing Disrepair ("HDR") business has gained
significant traction in the first half, with approximately 2,300 cases
overall, of which almost 600 settled in the first half of the year. HDR
revenue more than doubled in the first half to £4.7 million (2021: £2.2
million), with profit of £2.4 million (2021 H1: £1.1 million).
Outlook
The Group has shown robust growth during the period and plans to optimise cash
generation in the second half year. The Board has confidence in meeting market
expectations for the year with a focus on improving the vehicle mix, building
on the strong progress in Housing Disrepair and maximising the emissions
opportunities.
KPIs H1 2022 H1 2021 Movement
Number of vehicles on hire at the period end 1,947 1,740 +11.9%
Average number of vehicles on hire for the period +39.8%
2,043 1,461
Completed vehicle hires 5,501 4,081 +34.8%
Number of hire cases settled 3,563 2,924 +21.9%
Number of new cases funded 5,082 4,208 +20.8%
Cash collections from settled cases (£'000s) 67,931 56,665 +19.9%
Legal staff employed at period end 633 578 +9.5%
Outlook
The Group has shown robust growth during the period and plans to optimise cash
generation in the second half year. The Board has confidence in meeting market
expectations for the year with a focus on improving the vehicle mix, building
on the strong progress in Housing Disrepair and maximising the emissions
opportunities.
KPIs
H1 2022
H1 2021
Movement
Number of vehicles on hire at the period end
1,947
1,740
+11.9%
Average number of vehicles on hire for the period
2,043
1,461
+39.8%
Completed vehicle hires
5,501
4,081
+34.8%
Number of hire cases settled
3,563
2,924
+21.9%
Number of new cases funded
5,082
4,208
+20.8%
Cash collections from settled cases (£'000s)
67,931
56,665
+19.9%
Legal staff employed at period end
633
578
+9.5%
Commenting on the Interim Results, Alan Sellers, Executive Chairman of Anexo
Group plc, said:
"I am delighted to report that the Group has continued its strong performance
during the first half of the year. Business activity in both our credit hire
and legal services divisions has grown strongly.
"We are proud of the social value of the services we offer. 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.
"We continue to manage our vehicle fleet carefully and to maximise cash
collections by identifying appropriate hire opportunities, particularly within
the motorcycle sector; this allows for more efficient use of working capital
whilst also increasing the overall number of case settlements.
"The strong progress being made in housing disrepair and emissions will
underpin the continued growth in the core business, and the Board remains
confident in meeting market expectations for the year."
- Ends -
Results Conference Call
An analyst conference call will be held at 09:30 BST today, 20 September 2022.
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: https://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 Fryer, Chief Financial Officer
Nick Dashwood Brown, Head of Investor Relations
WH Ireland Limited
(Nominated Adviser & Joint Broker)
Chris Hardie / Darshan Patel / Enzo Aliaj (Corporate) +44 (0) 20 7220 1666
Fraser Marshall / Harry Ansell (Broking) www.whirelandplc.com/capital-markets
(https://url.avanan.click/v2/___https:/eu-west
-1.protection.sophos.com?d=whirelandplc.com&u=aHR0cDovL3d3dy53aGlyZWxhbmRwbGMuY29tL2NhcGl0YWwtbWFya2V0cw==&i=NWNkOTc2NmM5OWJhMjAxMDhmN2IyYzQ1&t=SXVCMnArbXpCUWFUR3hiN0dhVjR5Q3d4VDNrTGVJc1JZVXNxWVRpbE8zcz0=&h=0482e68813aa4f569a47aab5cdad04d1___.YXAxZTp3aGlyZWxhbmRwbGMyOmE6bzpjYjY3ZDZhNTE1ZmUwZTA0Zjg3MDFkYTJhYTAxZGMyNDo2OmU0NjA6M2ViNTgwYzkxMmM5NTFlMzUyMzM1ODhlNzcyOGFhMjZhNjI0OTkzOGRkOTkzZjQ5NTUzNjFjYzE5N2UwYTBkNzpoOlQ)
Arden Partners plc
(Joint Broker) +44 (0) 20 7614 5900
John Llewellyn-Lloyd / Louisa Waddell (Corporate) www.arden-partners.co.uk (http://www.arden-partners.co.uk)
Tim Dainton (Equity sales)
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 over 1,100 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 is also involved in litigation relating to
Housing Disrepair and emissions claims against major motor manufacturers.
For additional information please visit: www.anexo-group.com
(http://www.anexo-group.com) . To subscribe to our investor alert service and
receive all press releases, financial results and other key shareholder
messages as soon as they become available, please visit:
https://www.anexo-group.com/content/investors/alert.asp
(https://www.anexo-group.com/content/investors/alert.asp) .
Executive Chairman's Statement
On behalf of the Board, I am pleased to introduce Anexo's results for the
six-month period ended 30 June 2022. The Group has continued to demonstrate
the effectiveness of its business model. Vehicle numbers within the credit
hire division have grown, while increased case settlements within the legal
services division have ensured a good rise in cash collections.
Demand for hire vehicles shows no signs of abating. We continue to recruit
staff in targeted areas within the legal services division, while case
settlements and cash collections continue to grow. This points to plenty of
opportunities for the Group, albeit at lower levels of growth to ensure that
cash generation can be further improved.
H1 2022 Group Performance
Anexo has delivered a strong performance across all key Group financial
metrics and KPIs over the first six months of the year. Group revenues in H1
2022 increased by 42% to £68.6 million (H1 2021: £48.3 million) and profit
before tax rose by 52% to £13.6 million (H1 2020: £8.9 million).
Credit Hire Division
Demand for vehicles has remained strong throughout the period following the
decisive return of traffic levels to pre-pandemic levels. The average number
of vehicles on the road during H1 2022 reached 2,043 (H1 2021: 1,461), a 40%
increase on the prior year. The Group is committed to careful management of
vehicle numbers to maximise efficient use of working capital; as a
consequence, the overall number of vehicles on the road has been declining
toward the end of the first half of the year and at the period end the number
stood at 1,947. This still represents an 11.9% increase on the H1 2021 number
but shows a reduction of 17.7% on the 2,366 vehicles on the road at the end of
FY 2021.
This performance led to growth in Credit Hire revenue of 62%, up from £26.3
million in H1 2021 to £42.5 million in H1 2022. Profit before tax in the
Credit Hire division rose by 36% to £10.9 million in H1 2022 (H1 2021: £8.0
million). Completed vehicle hires rose by 35% to 5,501 in H1 2022 (H1 2021:
4,081). This increase has been supported by the agreement with MCE Insurance
announced on 25 November 2021 as well as by a number of protocols with
insurance counterparties.
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 employed at the end of H1 2022 rose by 41% to 247 (H1 2021: 175) and
the overall number of legal staff rose from 578 in H1 2021 to 633 in H1 2022,
an increase of 10%.
This investment has underpinned continued growth in cash collections, which
rose 20% in H1 2021 to a total of £67.9 million (H1 2021: £56.7 million).
Revenues from the Legal Services division, which strongly converts to cash,
increased by 8.1% to £21.4 million in H1 2022 (H1 2021: £19.8 million).
Profit before taxation rose from £1.5 million in H1 2021 to £2.5 million in
H1 2022, an increase of 67%. The Group expects this revenue trend to continue
as more of our staff reach maturity from a cash collection and settlement
position.
Housing Disrepair
The Group's Housing Disrepair ("HDR") division continues to show significant
growth. The number of ongoing claims currently stands at approximately 2,300
cases. HDR continues to require additional cash funding; this amounted to
£0.3 million in the first half year, with profit of £2.4 million (2021 H1:
£1.1 million).
Emissions Litigation
The advocacy team continues to act on behalf of a number of individuals in the
pursuit of a claim against VW and its subsidiaries (the "VW Emissions case").
The Group announced on 26 May 2022 that it is engaged in approximately 13,000
cases. The Group remains in discussions with VW and its representatives around
a possible settlement of these claims.
The Group continues to pursue other emissions cases, particularly in relation
to Mercedes Benz. Total expenditure that has been expensed in the H1 2022 is
£1.3 million (H1 2021: £0.5 million). The Group currently has approximately
4,000 Mercedes cases.
The Board believes there is a significant short-term opportunity to accelerate
growth in emissions claims against specific vehicle manufacturers, as well as
HDR claims. Accordingly, the Group has negotiated an increase in its loan
agreement with Blazehill Capital, first announced on 11 May 2022, from £7.5
million to £15 million. The funds will be drawn down immediately to take
advantage of this opportunity. The costs in targeting further emissions claims
will be expensed in the normal way and the Group will update the market with
details of emissions expenditure on a regular basis.
Dividend
The Board believes that the emissions opportunity warrants significantly
increased investment over the next few months and has therefore resolved that
the interests of the Group and its shareholders would be best served by paying
an annual dividend following the announcement of the Group's full year
results.
Outlook
The Group has shown robust growth in the first half and plans to optimise cash
generation in the second half year with a focus on improving the vehicle mix.
The Board has confidence in meeting market expectations for the year with a
focus on continuing the strong progress in Housing Disrepair and maximising
the emissions opportunities.
Alan Sellers
Executive Chairman
20 September 2022
Consolidated Statement of Comprehensive Income
For the unaudited period ended 30 June 2022
Unaudited Unaudited Audited
Half year Half year Year ended
ended ended
30-Jun-22 30-Jun-21 31-Dec-21
Note £'000s £'000s £'000s
Revenue 2 68,610 48,316 118,237
Cost of sales (16,253) (10,668) (26,756)
Gross profit 52,357 37,648 91,481
Depreciation & profit / loss on disposal (5,561) (3,809) (8,504)
Amortisation (74) (65) (137)
Administrative expenses (30,759) (23,171) (55,112)
Operating profit before share based payments 15,963 10,603 27,728
Share based payment charges 175 (236) (378)
Non-recurring administrative expenses - - -
Operating profit 16,138 10,367 27,350
Net financing expense (2,500) (1,456) (3,604)
Profit before tax 13,638 8,911 23,746
Taxation (2,734) (1,810) (4,598)
Profit and total comprehensive income for the year attributable to the owners 10,904 7,101 19,148
of the company
Earnings per share
Basic earnings per share (pence) 9.3 6.1 16.5
Diluted earnings per share (pence) 9.3 6.0 16.2
The above results were derived from continuing operations.
Consolidated Statement of Financial Position
Unaudited at 30 June 2022
Unaudited Unaudited Audited
30-Jun-22 30-Jun-21 31-Dec-21
Assets Note £'000s £'000s £'000s
Non-current assets
Property, plant and equipment 3 2,323 2,217 2,071
Right-of-use assets 16,816 13,337 16,896
Intangible assets 112 238 188
Deferred tax assets 112 112 112
19,363 15,904 19,267
Current assets
Trade and other receivables 4 209,817 160,485 188,134
Corporation tax receivable - 439 -
Cash and cash equivalents 1,247 1,418 7,562
211,176 162,342 195,696
Total assets 230,427 178,246 214,963
Equity and liabilities
Equity
Share capital 59 58 58
Share premium 16,161 16,161 16,161
Share based payment reserve - 1,935 2,077
Retained earnings 121,554 99,621 109,928
Equity attributable to the owners of the Group 137,774 117,775 128,224
Non-current liabilities
Other interest-bearing loans and borrowings 5 20,710 3,029 13,814
Lease liabilities 8,462 7,382 8,430
Deferred tax liabilities - 32 32
29,172 10,443 22,276
Current liabilities
Other interest-bearing loans and borrowings 5 37,235 28,781 38,499
Lease liabilities 9,018 6,619 8,833
Trade and other payables 9,966 9,108 12,635
Corporation tax liability 7,262 5,520 4,496
63,481 50,028 64,463
Total liabilities 92,653 60,471 86,739
Total equity and liabilities 230,427 178,246 214,963
Consolidated Statement of Changes in Equity
For the unaudited period ended 30 June 2022
Share capital Share Share based payment reserve Retained Total
premium earnings
£'000s £'000s £'000s £'000s £'000s
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
Share based payment charge - - (175) - (175)
Transfer of share based payment reserve - - (1,902) 1,902 -
Dividends - - - (1,180) (1,180)
At 30 June 2022 59 16,161 - 121,554 137,774
At 1 January 2021 58 16,161 1,699 92,520 110,438
Profit for the period and total comprehensive income - - - 7,101 7,101
Issue of share capital - - - - -
Share based payment charge - - 236 - 236
Dividends - - - - -
At 30 June 2021 58 16,161 1,935 99,621 117,775
Profit for the period and total comprehensive income - - - 12,047 12,047
Share based payments charge - - 142 - 142
Adjustment - - - - -
Dividends - - - (1,740) (1,740)
At 31 December 2021 58 16,161 2,077 109,928 128,224
Anexo Group Plc
Consolidated Statement of Cash Flows
For the unaudited period ended 30 June 2022
Unaudited Unaudited
Half year Half year Audited
ended ended Year ended
30-Jun-22 30-Jun-21 31-Dec-21
£'000s £'000s £'000s
Cash flows from operating activities
Profit for the year 10,904 7,101 19,148
Adjustments for:
Depreciation and profit / loss on disposal 5,561 3,809 8,504
Amortisation 74 65 137
Financial expense 2,500 1,456 3,604
Share based payment charge (175) - 378
Taxation 2,734 1,810 4,598
21,598 14,241 36,369
Working capital adjustments
Increase in trade and other receivables (21,682) (12,577) (40,224)
Increase in trade and other payables (2,667) (160) 3,131
Cash generated from operations (2,751) 1,504 (724)
Interest paid (2,380) (1,335) (3,364)
Tax repaid - 154 (3,219)
Net cash from operating activities (5,131) 323 (7,307)
Cash flows from investing activities
Proceeds from sale of property, plant and equipment 722 448 941
Acquisition of property, plant and equipment (1,285) (497) (1,439)
Investment in intangible fixed assets - (70) (91)
Net cash from investing activities (563) (119) (589)
Cash flows from financing activities
Proceeds from new loans 10,265 908 25,039
Dividends paid (1,180) - (1,740)
Repayment of borrowings (4,753) (4,171) (7,951)
Lease payments (4,953) (3,743) (8,110)
Net cash from financing activities (621) (7,006) 7,238
Net decrease in cash and cash equivalents (6,315) (6,802) (658)
Cash and cash equivalents at 1 January 7,562 8,220 8,220
Cash and cash equivalents at period end 1,247 1,418 7,562
Anexo Group Plc
Notes to the Interim Statements
For the unaudited period ended 30 June 2022
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 2021 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
2022 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
2023. 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, and
· vehicle emissions litigation, and
· Group and central costs.
Management monitors the operating results of business segments separately for
the purpose of making decisions about resources to be allocated and of
assessing performance.
Half year ended 30 June 2022
Credit Hire Legal Services Housing Disrepair Emissions Group and Central Costs Consolidated
£'000s £'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 2,527 13,638
2,353 (1,278) (905)
Net cash from operations (3,990) 2,228 (5,131)
(257) (1,278) (1,834)
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 25,278 - 5,801 254 92,653
Half year ended 30 June 2021
Credit Hire Legal Services Housing Disrepair Emissions Group and Central Costs Consolidated
£'000s £'000s £'000s £'000s £'000s £'000s
Revenues
Third party 26,306 19,795 2,215 - - 48,316
Total revenues 26,306 19,795 2,215 - - 48,316
Profit before taxation 7,970 1,536 8,911
1,054 (477) (1,172)
Net cash from operations 284 1,744 323
(531) (477) (697)
Depreciation 3,138 736 - - - 3,874
Segment assets 130,723 44,514 2,293 - 716 178,246
Capital expenditure 243 254 497
- - -
Segment liabilities 37,681 20,224 - 2,351 215 60,471
Year ended 31 December 2021
Credit Hire Legal Services Consolidated
Housing Disrepair Emissions Group and Central Costs
£'000s £'000s £'000s £'000s £'000s £'000s
Revenues
Third party 71,338 41,823 5,076 - - 118,237
Total revenues 71,338 41,823 5,076 - - 118,237
Profit before taxation 19,811 4,423 (819) (2,261) 23,746
2,592
Net cash from operations (10,654) 5,637 (819) (903) (7,307)
(568)
Depreciation 7,205 1,436 - - - 8,641
Segment assets 161,578 49,545 3,648 - 192 214,963
Capital expenditure 998 441 - - 1,439
-
Segment liabilities 55,415 25,413 - 5,501 410 86,739
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 2021 492 2,675 24,693 878 28,738
Additions - 287 4,213 57 4,557
Disposals - - (6,084) - (6,084)
At 30 June 2021 492 2,962 22,822 935 27,211
Additions 2 163 8,394 28 8,587
Disposals - - (1,572) (334) (1,906)
At 31 December 2021 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
Depreciation
At 1 January 2021 297 859 11,612 702 13,470
Charge for year 13 270 3,560 31 3,874
Eliminated on disposal - - (5,687) - (5,687)
At 30 June 2021 310 1,129 9,485 733 11,657
Charge for the year 12 289 4,479 38 4,818
Disposals - - (1,216) (334) (1,550)
At 31 December 2021 322 1,418 12,748 437 14,925
Charge for the year 16 288 5,300 55 5,659
Adjustment / disposals - - (3,351) - (3,351)
At 30 June 2022 338 1,706 14,697 492 17,233
Carrying amount
At 30 June 2022 308 1,612 16,816 403 19,139
At 31 December 2021 172 1,707 16,896 192 18,967
At 30 June 2021 182 1,833 13,337 202 15,554
4. Trade and Other Receivables
Jun-22 Jun-21 Dec-21
£'000s £'000s £'000s
Trade receivables - gross claim value 370,433 289,030 325,260
Settlement/impairment provision (205,966) (160,011) (178,867)
Net trade receivables 164,467 129,019 146,393
Accrued income 44,177 30,258 39,431
Prepayments 821 1,093 1,849
Other debtors 352 95 461
209,817 160,465 188,134
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-22 Jun-21 Dec-21
£'000s £'000s £'000s
Non-current loans and borrowings
Revolving credit facility 10,000 - 10,000
Other borrowings 10,710 3,029 3,814
Lease liabilities 8,462 7,382 8,430
29,172 10,411 22,244
Current loans and borrowings
Invoice discounting facility 31,364 15,449 29,258
Revolving credit facility - 8,000 -
Other borrowings 5,871 5,332 9,241
Lease liabilities 9,018 6,619 8,833
46,253 35,400 47,332
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 £5.0m 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.
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. 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 £2.1m from a specialist
litigation 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.
In November 2021 a further £3.0m loan was sourced from certain of the
principal shareholders and directors of the Group to support the investment in
2022 of 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.
- Ends -
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