Anexo Group plc (LON:ANX), the specialist integrated credit hire and legal services provider, has provided the following pre-close trading update for the year ended 31 December 2022 (‘FY-2022’) ahead of the release of its FY-2022 Final Results on 9 May 2023.
Performance for the Full Year ending 31 December 2022
· Revenue is expected to be between £135.0 million and 137.0 million1
· Profit before tax for the Group is expected to be between £24.0 and £26.0 million, at the upper end of this range broadly in line with market expectations1
· The Group remains focused on quality claims, high service standards and high success rates. The number of vehicles on the road as of 31st December 2022 was 1,730.
· Bond Turner’s Housing Disrepair team has settled approximately 2,000 cases since inception and in excess of a further 3,000 cases are currently under management.
· As at 31 December 2022, the Group’s overall net debt stood at £73.1 million (31 December 2021: £62.0 million)
1Subject to final audit
Current Trading
The Group’s credit hire division, EDGE, has continued its focus on quality claims, high service standards and high success rates. The adoption of this targeted approach has led to continued strength in the market, and an optimistic outlook for 2023.
The Group’s legal division, Bond Turner continues to benefit from the re-opening of the court system, which has seen an increase in cash collections, supporting further investment in new claims in credit hire, housing disrepair and emissions litigation. This trend is expected to continue through 2023 and cash collections are currently running at record levels.
The Housing Disrepair team continues to perform strongly; it is currently dealing with in excess of 3,000 cases and since inception has settled approximately 2,000 cases. The Board believes that the prospects for growth in this division are very positive.
The Board will give further guidance for the full year upon the release of the audited Final Results on 9 May 2023.
Mercedes Benz Class Action
The Group notes the judgment by the High Court granting a Group Litigation Order, handed down on 8 March 2023. The application, brought by Leigh Day and Pogust Goodhead, sought permission to launch a class action lawsuit against Mercedes Benz for alleged subversion of key air pollution tests by using special software to reduce emissions of nitrous oxides under test conditions.
Following the success of the application, the Board is pleased to confirm that the Group intends to pursue litigation against Mercedes and has already secured over 12,000 claims through internal resources and via social media. The Board will provide further details as and when appropriate.
Alan Sellers, Executive Chairman of Anexo Group, commented: “We are very pleased with the continued strong performance of the Group in the face of difficult economic conditions. Opportunities in credit hire, housing disrepair and emissions remain plentiful and we continue to concentrate on those cases which facilitate the most efficient return on our working capital. We look forward to updating shareholders further at our final results in May.”
