Anexo Group plc (ANX) told investors on Tuesday that renegotiated financing arrangements and record level cash collections and legal fee income has boosted its profits.
The company said that profits before tax will “significantly exceed current market expectations” of £20.0 million in a trading update.
A positive trading update a month earlier revealed it expected profits to exceed the previous guidance of £18.1 million.
Shares in the specialist integrated credit hire and legal services provider, which listed last year on AIM in June 2018, have risen over 90% from its listing price of 100p to 193p.
Shares jumped 10% to 193.5p after Tuesday morning trading
Anexo Group said it had renegotiated its working capital facilities, securing “considerable improvement” in its financing arrangements from both new and existing providers.
It added that new terms with its fleet insurance provider are expected to deliver enhanced savings for the remainder of FY-2019 and for FY-2020.
Anexo said that targeting of specific claims types from the impecunious market “enhanced average claim statistics and underlying profitability”, and that its case settlements, cash collection and overall legal fee income continues to increase.
Anexo also said that its new regional office of Bond Turner continues to grow, and that it achieved a record level of cash collection for the month of July 2019.
Legal & General Group are a major shareholder in the company.
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