Anexo (ANX ) outlined that revenue growth for the 12-month period ended 31 December 2020 has exceeded the Board's expectations after the company managed to remain fully operational throughout both nationwide lockdowns amid the pandemic.
The number of vehicles on the road in its credit hire division, EDGE, recovered strongly following the lifting of the first lockdown in July, even reaching record numbers in 2H20.
In the second lockdown in November, the number of vehicles on the road once again saw an initial decline, although the monthly totals remain well ahead of those seen in 1H20. The Board said the average number of vehicles on the road for FY20 will exceed that of FY19.
The courts have remained open throughout the second lockdown, as they were in the first, with settlements continuing where possible via telephone and online hearings, it noted.
Notwithstanding delays in court proceedings as a result of remote operation, the Board said monthly cash collections rose significantly in 4Q20, reaching a record high in December.
The London-listed specialist integrated credit hire and legal services provider said it maintained its recruitment strategy during the period, increasing the number of litigators within Bond Turner, thereby driving increased case settlements and cash collection relative to investment in new cases.
Furthermore, all costs associated with marketing and the processing of claims are expensed as incurred while investment in case acquisition in FY20 totalled £2.9 million.
Salary and other associated costs have therefore increased during the year with adjusted profit before tax expected to be in line with current market expectations.
Outlook
Anexo continues to increase the number of cases involved in the legal action against Volkswagen AG in the ongoing ‘VW Emissions’ case with the group actively engaged on around 14,356 claims.
Meanwhile, Anexo has also announced the appointment of Saki Riffner, partner and co-founder of DBAY Advisors, as a Non-Executive Director with immediate effect.
Anexo Group confirmed that it will announce its Final Results for FY20 on 27 April 2021.
Investors in Anexo won’t be surprised by todays revenue beat, as the Company has kept investors well informed throughout the trading period. However, the accelerated investment in staff while maintaining market expectations at the adjusted PBT level, will add significant confidence to trading expectations during FY21 and beyond. Shares in Anexo Group have increased by nearly 20% since April’20 to open at 132p today following the group’s positive trading announcement.
Reasons to Follow ANX
Anexo is an integrated credit hire & legal services group that provides replacement vehicles and associated legal services to customers who have been involved in a non-fault accident.
In November 2020, the company told investors that the COVID-19 pandemic had led to a number of its competitors withdrawing from the market and, as a result, Anexo had been approached by a number of high-quality introducer garages looking for new partnerships.
The Group said it has leveraged this ‘unprecedented opportunity’ to expand its introducer network; resulting in the number of vehicles on the road during H2 2020 ‘consistently exceeding internal targets’. As at 10 November 2020, road vehicles stood at 1,902.
The company said it plans to work closely with the international Asset Management firm, DBAY, in order to continue the expansion of its Credit Hire and Legal Services divisions.
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