Anexo Group Q&A with Arden Partners “outlook appears robust” (LON:ANX)

Anexo Group plc (LON:ANX) is the topic of conversation when Arden Partners’ Head of Research Andrew Simms caught up with DirectorsTalk for an exclusive interview.

Q1: Andy, Anexo Group has reported good 2020 results with a solid performance despite COVID, what were the key takeaways in your view?

A1: The Group has continued to invest in the credit hire and legal services businesses and the benefits of this should become much more clear as the COVID restrictions are removed. The exit from the credit hire market by competitors and the impending whiplash reforms provide potential market share gains and accelerating cash settlements from the legal services side will provide the capital to invest further in this growth.


Q2: How do you view the outlook and forecast for the company?

A2: The outlook appears robust, assuming an orderly exit from current and recent restrictions. The group’s credit hire business appears to be accelerating through 2021 and the increase in court proceedings and overall processing efficiency will enable increased activity through the second half of 2021 and in to 2022.


Q3: In terms of a valuation how would you describe Anexo Group?

A3: The stock trades on 9.2x P/E and only 1.2x P/BV which is effectively the value of the current backlog of credit hire cases the Group has on its books. This provides very little value for growth opportunities which the company can take advantage of, either in Credit Hire or adjacent areas, while the scale and financial outcome of the VW emissions cases remains unclear but represents a potential positive going forward.

Click to view all articles for the EPIC:
Or click to view the full company profile:
Facebook
Twitter
LinkedIn
Anexo Group plc

More articles like this

Anexo Group plc

Anexo Group revenue increased 42% to £68.6 million

Anexo Group plc (AIM: ANX), the specialist integrated credit hire and legal services provider, has reported its Interim Results for the six months ended 30 June 2022 (‘H1 2022’ or the ‘period’) Financial Highlights   H1 2022

Anexo Group plc

Complaints for maternity services up by 10% year-on-year

The most recent annual NHS Resolutions report for 2021/22 states that the cost of maternity care claims equates to 60% of the £13 billion spent on all negligence claims by the NHS in the last year. Additionally, a House

Anexo Group plc

Been Let Down secure settlement for dental negligence claim

Neil Crossley, Head of Clinical Negligence for Bolton, discusses a recent case where our client had experienced dental negligence, resulting in tooth loss that could have been prevented. Background Mrs A* had complained of an unpleasant

Anexo Group plc

Repairing social housing’s disrepair

For social housing landlords, the advantages of using the Internet of Things (IoT) to manage their respective properties are huge. From using leak detection sensors to prevent water damage, smart thermostats for energy efficiency, fire door

Anexo Group plc

What does the new tenant-focused regulation mean?

Sweeping reforms are set to herald a much more tenant-focused future, and will be covered in depth at Housing 2022. What will the changes mean and what are the key questions to ask? Why is regulation