Nick Dashwood Brown at Anexo: full year revenue growth exceeding forecasts and profit significantly ahead of market expectations
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Nick Dashwood Brown, Head of Investor Relations at Anexo #ANX discusses their trading update which sees full year revenue growth exceeding forecasts and profit before tax being significantly ahead of market expectations.
FY 2021 Trading Update
Anexo (AIM: ANX), the specialist integrated credit hire and legal services provider, is pleased to provide the following Trading Update in respect of the year ended 31 December 2021 ('FY 2021').
The Board is pleased to announce that revenue growth has exceeded the Group's forecasts and that profit before tax will be significantly ahead of market expectations.
The Group's growth strategy has been supported by a sustained recovery in its core business following the easing of the second national lockdown in March 2021. The number of vehicles on the road in the Group's credit hire division, EDGE, reached record numbers in the second half of 2021 ('H2 2021'), peaking at around 2,500 in December 2021. The number of vehicles on the road currently stands at 2,300.
The strong performance has been underpinned by a number of factors, including strong growth in the motorcycle courier market, the withdrawal of competitors due to Covid and the implementation of the Civil Liability Act in May 2021 as well as the deal with MCE previously announced on 25 November 2021.
The gradual re-opening of the courts has been beneficial to the Group's legal division, Bond Turner, enabling litigators to increase case settlements and cash collection, supporting further investment in new cases. This trend is expected to continue as more courts return to normal working.
On 7 December 2021 the Group announced the formation of a new Housing Disrepair team within Bond Turner. The team has made a strong start, with both new case and settlement numbers ahead of internal forecasts. The Group looks forward to considerable growth in this area in 2022.
The Group continues to monitor developments in the legal action against Volkswagen AG (the 'VW Emissions' case). The Group is actively engaged with approximately 15,000 claims. As previously announced, all costs associated with marketing and the processing of claims have been expensed as incurred; investment in case acquisition and development in 2021 totalled £800,000.
Notice of Final Results
The Group will be announcing its Final Results for the year ended 31 December 2021 on Wednesday, 11 May 2022.
About Anexo
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.
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