Anexo Group PLC Pre-Close Trading Statement (5284H)

TIDMANX

RNS Number : 5284H

Anexo Group PLC

07 April 2022

 
 For immediate release   7 April 2022 
 

Anexo Group plc

('Anexo' or the 'Group')

Pre-Close Trading Statement

Anexo Group plc (AIM: ANX), the specialist integrated credit hire and legal services provider, is pleased to provide the following pre-close trading update for the year ended 31 December 2021 ('FY-2021') ahead of the release of its FY-2021 Final Results on 11 May 2022.

Highlights

   --    Current trading is in line with management expectations 

-- The Group remains focused on quality claims, high service standards and high success rates. The number of vehicles on the road has been reduced to 1,955

-- Bond Turner's Housing Disrepair team has settled 850 cases since inception and a further 1,800 cases are currently under management

   --    New debt funding of GBP10.5 million has been secured 

-- The funding facility provided by Secure Trust Bank Plc is being increased by a further GBP7.5 million through three quarterly increases during 2022

Current Trading

Further to the FY 2021 trading update provided on 18 January 2022, the Group is pleased to announce that trading across all its divisions remains in line with management expectations . Following the successful launch of the MCE insurance contract in November 2021, the Group has modified its approach to vehicle funding accordingly, with a continued focus on quality claims, high service standards and high success rates. The adoption of this targeted approach has led to a reduction in the number of vehicles on the road within the Group's credit hire division, EDGE, and the current total stands at 1,955. This represents a significant increase on the same period last year and stands at a level which facilitates management of the Group's working capital requirements.

The Group's legal division, Bond Turner, continues to benefit from the re-opening of the court system, which enables litigators to increase case settlements and cash collection, supporting further investment in new cases. This trend is expected to continue through 2022 and cash collections are currently running at record levels.

On 7 December 2021 the Group announced a new Housing Disrepair team within Bond Turner. The team continues to perform strongly; it is currently dealing with approximately 1,800 cases and since inception has settled approximately 850 cases. The Board believes that the prospects for growth in this division are very positive.

The Group continues to monitor the legal action against Volkswagen AG (the 'VW Emissions' case). A court date for the hearing of the class action has been set for January 2023. The Board believes there is a likelihood of further developments during the course of 2022.

Increase In Debt Facilities

The Group is pleased to announce an increase in its overall debt facilities. New debt facilities of GBP7.5 million have been secured from a new lender on regular commercial terms. In addition, the funding facility provided by Secure Trust Bank Plc (Secure Trust) is being increased by GBP7.5 million through three quarterly increases of GBP2.5 million, taking the overall facility to GBP40.0 million. This increased facility is provided on the same commercial terms as those announced on 30 September 2021.

The Group has also secured a further GBP3.0 million of litigation funding to support investment in further diesel emission class actions.

Alan Sellers, Executive Chairman of Anexo Group, commented: "We are pleased to report that Anexo continues to operate in line with management's expectations. Overall, we have seen improvement across all business areas and our targeted approach has resulted in a continued emphasis on quality claims, high success rates and high levels of service to our customers. Cash collections continue to improve on an ongoing basis. We look forward to updating shareholders further at our final results in May."

- Ends -

For further enquiries:

 
 Anexo Group plc                                                    [phone] 
                                                                     www.anexo-group.com 
 Alan Sellers, Executive Chairman 
  Mark Bringloe, Chief Financial Officer 
  Nick Dashwood Brown, Head of Investor 
  Relations 
                                                                    [phone] 
   Arden Partners plc                                           www.arden-partners.co.uk 
   (Nominated Adviser and Broker) 
 John Llewellyn-Lloyd / Louisa Waddell 
  (Corporate) 
  Tim Dainton (Equity Sales) 
 
   Panmure Gordon                                                   [phone] 
   (Joint Broker)                                                        www.panmure.com 
   Ed Walsh/Dominic Morley 
 

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.

The Group was admitted to trading on AIM in June 2018 with the ticker ANX.

For additional information please visit: 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 .

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

TSTBKABKPBKDQQK

(END) Dow Jones Newswires

April 07, 2022 02:00 ET (06:00 GMT)