Source - LSE Regulatory
RNS Number : 4808L
Anexo Group PLC
13 September 2021
 

For immediate release

13 September 2021

 

Anexo Group plc

('Anexo' or the 'Group')

 

Interim Results

 

"Strong post-lockdown recovery offers new opportunities for growth"

 

Anexo Group plc (AIM: ANX), the specialist integrated credit hire and legal services provider, is pleased to report Interim Results for the six months ended 30 June 2021 ('H1 2021' or the 'period'). The Board is pleased to report that the Group continued its robust recovery throughout the gradual lifting of the third lockdown. Anexo has continued to invest in its business and the Board is confident in the outcome for FY 2021.

 

Financial Highlights

 

H1 2021

H1 2020

Movement

 

Revenue

£48.3 million

£36.6 million

+31.9%

Operating profit

£10.4 million

£7.5 million

+38.5%

Profit before tax

£8.9 million

£6.3 million

+40.5%

Net assets

£117.8 million

£103.9 million

+13.3%

Cash collection

£56.7 million

£48.0 million

+18.1%

Basic EPS

6.1 pence

4.5 pence

+35.6%

 

·      

Operating profit increased by 38.5 per cent to £10.4 million (H1 2020: £7.5 million) as a result of improved cash collections driving fee income into legal services and increased opportunities within credit hire

·      

Net cash inflow from operating activities of £1.5 million (H1 2020: net cash inflow £6.2 million)

·      

Overall net cash outflow of £6.8 million (H1 2020: net cash inflow £2.4 million), of which financing activities accounted for £7.0 million of cash outflow (H1 2020: net cash inflow from financing of £3.8 million)

·      

Proposed interim dividend of 0.5p per share (H1 2020: 0.5p per share)

·      

Net debt balance at 30 June 2021 stood at £44.4 million (30 June 2020: net debt of £27.1 million, 31 December 2020: £40.5 million)

·      

The Board expects H2 2021 underlying profit before tax to continue to improve as cash collections grow, the number of cases settled in court increases following the reopening of courts in May 2021 for face-to face-hearings, and vehicle numbers continue to reach record levels

 

 

Operational Highlights

 

 

 

KPIs

 

H1 2021

H1 2020

Movement

Number of vehicles on hire at the period end

1,740

1,380

+26.1%

Average number of vehicles on hire for the period

1,461

1,286

+13.6%

Completed vehicle hires

4,081

2,953

+38.2%

Number of hire cases settled

2,924

2,622

+11.5%

Cash collections from settled cases (£'000s)

56,665

47,961

+18.1%

Number of new cases funded

4,208

3,025

+39.1%

Legal staff employed at period end

578

450

+28.4%

Number of senior fee earners at period end

175

137

+27.8%

Average number of senior fee earners

164

134

+22.4%

 

Commenting on the Interim Results, Alan Sellers, Executive Chairman of Anexo Group plc, said:

 

"I am pleased to report that the Group has performed robustly during the first half of the year, notwithstanding the considerable challenges posed by the COVID-19 pandemic. Business activity in both our credit hire and legal services divisions have recovered strongly. We continue to put record numbers of vehicles on the road and to maximise cash collections by carefully managing hire periods and increasing the overall number of case settlements.

 

"The rise in vehicle demand and our continued focus on cash collections provide an excellent opportunity to further implement the Group's fundamental growth strategy. Our existing finance providers have offered increased facilities, the details of which are currently being finalised. These will allow us to increase the deployment of our fleet and accelerate the number of new cases we take on, while enabling ongoing investment in high quality litigators; thereby ensuring we maintain the relationship between new business and settlement capacity which has been the focus of the Group since listing.

 

"Following the amicable cessation of exploratory takeover talks, DBAY Advisers Ltd retains a seat on the Board as a major supportive shareholder. We believe that our growth strategy offers the best possible opportunity to create significant value for all our shareholders. We remain committed to our stated dividend policy and we look to the future with confidence."

 

 

- Ends -

 

Results Conference Call

An analyst conference call will be held at 09:30 BST today, 13 September 2021. Retail investors will also be able to listen to the call but will not be eligible to ask questions. A copy of the Interim Results presentation is available at the Group's website: https://www.anexo-group.com/. Please contact Nick Dashwood Brown, Head of Investor Relations, at nick@anexo-group.com if you would like to join the call.

An audio webcast of the conference call with analysts will be available after 12:00 BST today on the Company's website: www.anexo-group.com

 

 

 

For further enquiries:

Anexo Group plc

+44 (0) 151 227 3008

www.anexo-group.com

Alan Sellers, Executive Chairman

Mark Bringloe, Chief Financial Officer

Nick Dashwood Brown, Head of Investor Relations

 

Arden Partners plc

(Nominated Adviser and Broker)

 

John Llewellyn-Lloyd / Louisa Waddell (Corporate)

Tim Dainton (Equity Sales)

+44 (0) 20 7614 5900

www.arden-partners.co.uk

 

Panmure Gordon

(Joint Broker)

Ed Walsh/Dominic Morley

 

 

 

                               +44 (0) 20 7886 250

www.panmure.com

                                                                                              

   

Notes to Editors:

 

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.

 

The Group was admitted to trading on AIM in June 2018 with the ticker ANX.

 

For additional information please visit: www.anexo-group.com. To subscribe to our investor alert service and receive all press releases, financial results and other key shareholder messages as soon as they become available, please visit: https://www.anexo-group.com/content/investors/alert.asp.
 

Executive Chairman's Statement

 

On behalf of the Board, I am pleased to introduce Anexo's results for the six-month period ended 30 June 2021, a period during which the Group has shown a robust recovery from the restrictions imposed by the COVID pandemic. The increase in traffic levels following the easing of lockdown has led to record numbers of vehicles on the road, while increased case settlements within the legal services division have ensured a significant rise in cash collections.

The continuing demand for vehicles and the ongoing growth in staff levels within legal services combine to provide excellent opportunities for significant growth. The Board has considerable confidence in the prospects for H2 2021 and beyond.

H1 2021 Group Performance

Anexo has delivered a strong performance across all key Group financial metrics and KPIs over the first six months of the year, following a resilient performance during the COVID-19 related lockdowns. Group revenues in H1 2021 increased by 31.9 per cent to £48.3 million (H1 2020: £36.3 million) and profit before tax rose by 40.5 per cent to £8.9 million (H1 2020: £6.3 million).

Credit Hire Division

Demand for vehicles remained strong throughout the lockdown period and continued to increase steadily throughout the various stages of lockdown easing which began on 8 March 2021. The average number of vehicles on the road during H1 2021 reached 1,461 (H1 202: 1,286), a 13.6 per cent increase on the prior year. The rising rate of the recovery in demand is illustrated by the number of vehicles on hire at the period end, which stood at 1,740 as at 30 June 2021, a rise of 26.1 per cent on the same date last year.

This increase led to growth in Credit Hire revenue of 27.1 per cent, rising from £20.7 million in H1 2020 to £26.3 million in H1 2021. Profit before tax in the Credit Hire division rose by 17.0 per cent to £7.97 million in H1 2021 (H1 2020: £6.81 million). Completed vehicle hires rose by 38.2 per cent to 4,081 in H1 2021 (H1 2020: 2,953). This increase has been supported by a number of new protocols with insurance companies and by ongoing investment in technology and staff within the Group's legal subsidiary, Bond Turner. Consequently, the average hire period in H1 2021 fell by 15.9 per cent to 69 days (H1 2020: 82 days).

The Group's active hire fleet currently divides into roughly one third cars and commercial vehicles and two thirds motorcycles. Further strategic investment in the fleet is likely to maintain this ratio. We seek to target the most valuable claims for the Group, which has the effect of improving individual claim performance and driving growth in revenues and profitability over and above the number of vehicles on the road.

Legal Services Division

The Group's longstanding policy is to grow its claim settlement capacity and consequently recruitment has continued throughout the lockdown period, including the opening of the Leeds office in Q1 2021. The number of senior fee earners employed at the end of H1 2021 rose by 27.8 per cent to 175 (H1 2020: 137) and the overall number of legal staff rose from 450 in H1 2020 to 578 in H1 2021, an increase of 28.4 per cent.

This investment has underpinned continued growth in cash collections, which rose 18.1% in H1 2021 to a total of £56.67 million (H1 2020: £47.96 million). Revenues from the Legal Services division, which strongly converts to cash, increased by 38.2 per cent to £22.01 million in H1 2021 (H1 2020: £15.92 million). Profit before taxation rose from £0.84 million in H1 2020 to £2.59 million in H1 2021, an increase of 209 per cent. The Group expects this revenue trend to continue as more of our staff reach maturity from a cash collection and settlement position.

The advocacy team continues to act on behalf of a number of individuals in the pursuit of a claim against Volkswagen AG ("VW") and its subsidiaries (the "VW Emissions case"). Following a marketing campaign in FY 2020 conducted mainly via social media, the Group announced on 27 April 2021 that it was engaged in approximately 14,356 cases. Given the strong recovery in credit hire demand as the lifting of lockdown accelerated, the Board took the decision to concentrate its working capital on maximising fleet utilisation and corresponding capacity within the Legal Services division. Consequently there has been no marketing spend on the VW Emissions case in H1 2021 and the number of cases remains broadly unchanged. The Group anticipates further developments in the case during H2 2021.

Dividend

The Board is pleased to propose an interim dividend of 0.5p per share which will paid on 22 October 2021 to those shareholders on the register at the close of business on 24 September 2021. The shares will become ex-dividend on 23 September 2021. The Board intends to maintain its stated dividend policy.

Trading Outlook

Current activity levels indicate a strong second half performance for the Credit Hire division. The number of vehicles on the road is consistently reaching record levels and, as of 7 September 2021, stands at 2,023. The outlook for the Legal Services division is also strongly positive, with case settlements and consequent cash collections set to increase as the courts re-open fully and the backlog of cases diminishes.

The Group's finance providers have proposed increases in our debt facilities and the Board anticipates that agreements will be concluded shortly. Current market conditions offer significant opportunities and the Board believes that reaffirming its growth strategy will benefit both the Credit Hire and Legal Services divisions and contribute to the creation of value for all our shareholders. The Board looks to the second half of 2021 and beyond with renewed optimism.

 

Alan Sellers

Executive Chairman

13 September 2021

 

 

 

 

Consolidated Statement of Comprehensive Income

For the unaudited period ended 30 June 2021

 

 

 

Unaudited

Unaudited

Audited

 

 

Half year

ended

Half year

ended

Year ended

 

 

30-Jun-21

30-Jun-20

31-Dec-20

 

Note

£'000s

£'000s

£'000s

 

 

 

 

 

Revenue

2

48,316

36,625

86,752

Cost of sales

 

(10,668)

(7,560)

(18,800)

Gross profit

 

37,648

29,065

67,952

 

 

 

 

 

Depreciation & profit / loss on disposal

 

(3,809)

(3,163)

(6,571)

Amortisation

 

(65)

(44)

(92)

Administrative expenses

 

(23,171)

(18,044)

(42,581)

Operating profit before exceptional items

 

10,603

7,814

18,708

 

 

 

 

 

Share based payment charges

 

(236)

(329)

(658)

Non-recurring administrative expenses

 

-

-

-

Operating profit

 

10,367

7,485

18,050

 

 

 

 

 

Net financing expense

 

(1,456)

(1,141)

(2,562)

 

 

 

 

 

Profit before tax

 

8,911

6,344

15,488

Taxation

 

(1,810)

(1,374)

(3,173)

Profit and total comprehensive income for the year attributable to the owners of the company

 

7,101

4,970

12,315

 

 

 

 

 

Earnings per share

 

 

 

 

Basic earnings per share (pence)

6.1

4.5

10.8

 

 

 

 

Diluted earnings per share (pence)

6.0

4.4

10.6

 

The above results were derived from continuing operations.

 

 

 

 

Consolidated Statement of Financial Position

Unaudited at 30 June 2021

 

 

 

Unaudited

Unaudited

Audited

 

 

30-Jun-21

30-Jun-20

31-Dec-20

Assets

Note

£'000s

£'000s

£'000s

Non-current assets

 

 

 

 

Property, plant and equipment

3

2,217

1,788

2,187

Right-of-use assets

 

13,337

9,398

13,081

Intangible assets

 

238

191

234

Deferred tax assets

 

112

112

112

 

 

15,904

11,489

15,614

Current assets

 

 

 

 

Trade and other receivables

4

160,485

132,266

147,931

Corporation tax receivable

 

439

-

439

Cash and cash equivalents

 

1,418

11,211

8,220

 

 

162,342

143,477

156,590

 

 

 

 

 

Total assets

 

178,246

154,966

172,204

 

 

 

 

 

Equity and liabilities

 

 

 

 

Equity

 

 

 

 

Share capital

 

58

58

58

Share premium

 

16,161

16,180

16,161

Share based payment reserve

 

1,935

1,370

1,699

Retained earnings

 

99,621

86,334

92,520

Equity attributable to the owners of the Group

117,775

103,942

110,438

 

 

 

 

 

Non-current liabilities

5

 

 

 

Other interest-bearing loans and borrowings

 

3,029

2,021

3,681

Lease liabilities

 

7,382

5,576

8,945

Deferred tax liabilities

 

32

-

32

 

 

10,443

7,597

12,658

 

 

 

 

 

Current liabilities

5

 

 

 

Other interest-bearing loans and borrowings

 

28,781

26,528

31,294

Lease liabilities

 

6,619

4,204

4,753

Trade and other payables

 

9,108

7,726

9,505

Corporation tax liability

 

5,520

4,969

3,556

 

 

50,028

43,427

49,108

 

 

 

 

 

Total liabilities

 

60,471

51,024

61,766

 

 

 

 

 

Total equity and liabilities

 

178,246

154,966

172,204

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statement of Changes in Equity

For the unaudited period ended 30 June 2021

 

 

 

Share capital

Share

premium

Share based payment reserve

Retained

earnings

Total

 

 

 

£'000s

£'000s

£'000s

£'000s

£'000s

 

 

 

 

 

 

 

 

 

At 1 January 2021

 

58

16,161

1,699

92,520

110,438

 

Profit for the period and total comprehensive income

-

-

-

7,101

7,101

 

Issue of share capital

 

-

-

-

-

-

 

Share based payment charge

 

-

-

236

-

236

 

Dividends

 

-

-

-

-

-

 

 

 

 

 

 

 

 

 

At 30 June 2021

 

58

16,161

1,935

99,621

117,775

 

 

 

 

 

 

 

 

 

At 1 January 2020

 

55

9,235

1,041

81,365

91,696

 

Profit for the period and total comprehensive income

-

-

-

4,970

4,970

 

Issue of share capital

 

3

6,944

-

-

6,947

 

Share based payment charge

 

-

-

329

-

329

 

Dividends

 

-

-

-

-

-

 

 

 

 

 

 

 

 

 

At 30 June 2020

 

58

16,179

1,370

86,335

103,942

 

Profit for the period and total comprehensive income

-

-

 

-

7,345

7,345

 

Share based payments charge

 

-

-

329

-

329

 

Adjustment

-

(18)

-

-

(18)

 

Dividends

-

-

-

(1,160)

(1,160)

 

 

 

 

 

 

 

 

 

At 31 December 2020

 

58

16,161

1,699

92,520

110,438

 

 

 

 

 

 

 

 

                     

 

 

 

Anexo Group Plc

Consolidated Statement of Cash Flows

For the unaudited period ended 30 June 2021

 

 

Unaudited

Unaudited

 

 

 

Half year

ended

Half year

ended

Audited

Year ended

 

 

30-Jun-21

30-Jun-20

31-Dec-20

 

 

£'000s

£'000s

£'000s

Cash flows from operating activities

 

 

 

 

Profit for the year

 

7,101

4,970

12,315

Adjustments for:

 

 

 

 

Depreciation and profit / loss on disposal

 

3,809

3,163

6,571

Amortisation

 

65

44

92

Financial expense

 

1,456

1,141

2,562

Taxation

 

1,810

1,374

3,173

 

 

14,241

10,692

25,371

Working capital adjustments

 

 

 

 

Increase in trade and other receivables

 

(12,577)

(4,611)

(20,686)

Increase in trade and other payables

 

(160)

137

1,588

Cash generated from operations

 

1,504

6,218

6,273

 

 

 

 

 

Interest paid

 

(1,335)

(965)

(2,422)

Tax repaid

 

154

(27)

(3,646)

Net cash from operating activities

 

323

5,226

205

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

Proceeds from sale of property, plant and equipment

 

448

476

853

Acquisition of property, plant and equipment

(497)

(512)

(223)

Investment in intangible fixed assets

(70)

(59)

150

Receipt of directors loan receivable

-

-

415

Net cash from investing activities

 

(119)

(95)

895

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

Net proceeds from the issue of

share capital

 

-

6,947

6,929

Proceeds from new loans

 

908

3,324

12,924

Dividends paid

 

-

-

(1,160)

Repayment of borrowings

 

(4,171)

(3,170)

(6,257)

Lease payments

 

(3,743)

(3,291)

(7,586)

Net cash from financing activities

 

(7,006)

3,810

4,850

 

 

 

 

 

Net increase / (decrease) in cash and cash equivalents

(6,802)

8,941

5,950

Cash and cash equivalents at 1 January

 

8,220

2,270

2,270

Cash and cash equivalents at period end

 

1,418

11,211

8,220

 

 

 

 

 

 

 

 

Anexo Group Plc

Notes to the Interim Statements

For the unaudited period ended 30 June 2021

 

1.         Basis of preparation and significant accounting policies

 

The condensed consolidated financial statements are prepared using accounting policies consistent with International Financial Reporting Standards and in accordance with International Accounting Standard ('IAS') 34, 'Interim Financial Reporting'.

 

The information for the year ended 31 December 2020 does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006.  A copy of the statutory accounts for that year has been delivered to the Registrar of Companies.  The auditor's report on these accounts was not qualified and did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying the report and did not contain statements under Section 498 (2) or (3) of the Companies Act 2006.

 

The condensed unaudited financial statements for the six months to 30 June 2021 have not been audited or reviewed by auditors pursuant to the Auditing Practices Board guidance on Review of Interim Financial Information.

 

The condensed consolidated financial statements have been prepared under the going concern assumption.

 

The Directors have assessed the future funding requirement of the Group, and have compared them to the levels of available cash and funding resources.  The assessment included a review of current financial projections to December 2022.  Having undertaken this work, the Directors are of the opinion that the Group has adequate resources to finance its operations for the foreseeable future and accordingly, continue to adopt the going concern basis in preparing the Interim Report.

 

 

 

 

2.         Segmental Reporting

 

The Group's reportable segments are as follows:

 

·      the provision of credit hire vehicles to individuals who have had a non-fault accident, and

·      associated legal services in the support of the individual provided with a vehicle by the Group and other legal service activities, and

·      investment in the Volkswagen class action, and

·      Group and central costs.

 

Management monitors the operating results of business segments separately for the purpose of making decisions about resources to be allocated and of assessing performance.

 

Half year ended 30 June 2021

 

 

Credit Hire

Legal Services

VW Class

Action

Group and Central Costs

Consolidated

 

 

£'000s

£'000s

£'000s

£'000s

£'000s

 

Revenues

 

 

 

 

 

 

Third party

26,306

22,010

-

-

48,316

 

Total revenues

26,306

22,010

-

-

48,316

 

 

 

 

 

 

 

 

Profit before taxation

7,970

2,590

(477)

(1,172)

8,911

 

 

 

 

 

 

 

 

Net cash from operations

284

1,213

(477)

(697)

323

 

 

 

 

 

 

 

 

Depreciation

3,138

736

-

-

3,874

 

 

 

 

 

 

 

 

Segment assets

130,723

46,807

-

716

178,246

 

 

 

 

 

 

 

 

Capital expenditure

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment liabilities

37,681

20,224

2,351

215

60,471

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                     
 

 

 

 

 

 

 

Half year ended 30 June 2020

 

 

Credit Hire

Legal Services

VW Class

Action

Group and Central Costs

Consolidated

 

 

£'000s

£'000s

£'000s

£'000s

£'000s

 

Revenues

 

 

 

 

 

 

Third party

20,702

15,923

-

-

36,625

 

Total revenues

20,702

15,923

-

-

36,625

 

 

 

 

 

 

 

 

Profit before taxation

6,812

837

(689)

(616)

6,344

 

 

 

 

 

 

 

 

Net cash from operations

4,553

1,931

(689)

(569)

5,226

 

 

 

 

 

 

 

 

Depreciation

2,802

405

-

-

3,207

 

 

 

 

 

 

 

 

Segment assets

107,511

44,363

-

3,092

154,966

 

 

 

 

 

 

 

 

Capital expenditure

1,657

324

-

-

1,981

 

 

 

 

 

 

 

 

Segment liabilities

29,905

18,813

2,022

284

51,024

 

 

 

 

 

 

 

                     

 

Year ended 31 December 2020

 

 

Credit Hire

Legal Services

VW Class

Action

Group and Central Costs

Consolidated

 

 

£'000s

£'000s

£'000s

£'000s

£'000s

 

Revenues

 

 

 

 

 

 

Third party

51,591

35,161

-

-

86,752

 

Total revenues

51,591

35,161

-

-

86,752

 

 

 

 

 

 

 

 

Profit before taxation

17,892

2,817

(2,906)

(2,314)

15,488

 

 

 

 

 

 

 

 

Net cash from operations

(15)

3,287

(2,906)

(161)

205

 

 

 

 

 

 

 

 

Depreciation

5,492

1,173

-

-

6,665

 

 

 

 

 

 

 

 

Segment assets

125,055

45,789

-

1,360

172,204

 

 

 

 

 

 

 

 

Capital expenditure

4,238

900

-

-

5,138

 

 

 

 

 

 

 

 

Segment liabilities

39,521

16,886

2,251

3,108

61,766

 

 

 

 

 

 

 

                     

 

 

 

 

 

3.                  Property, Plant and Equipment

 

 

Property

Fixtures

Fittings &

Right of

Office

 

 

Improvement

Equipment

Use assets

Equipment

Total

 

£'000s

£'000s

£'000s

£'000s

£'000s

Cost or valuation

 

 

 

 

 

At 1 January 2020

453

1,781

17,176

787

20,197

Additions

23

289

2,982

52

3,346

Disposals

-

-

(1,570)

-

(1,570)

At 30 June 2020

476

2,070

18,588

839

21,973

Additions

16

605

7,194

39

7,854

Adjustment / Disposals

-

-

(1,089)

-

(1,089)

At 31 December 2020

492

2,675

24,693

878

28,738

Additions

-

287

4,213

57

4,557

Disposals

-

-

(6,084)

-

(6,084)

At 30 June 2021

492

2,962

22,822

935

27,211

 

 

 

 

 

 

Depreciation

 

 

 

 

 

At 1 January 2020

273

460

7,319

651

8,703

Charge for year

16

177

3,085

20

3,298

Eliminated on disposal

-

-

(1,214)

-

(1,214)

At 30 June 2020

289

637

9,190

671

10,787

Charge for the year

8

222

3,248

31

3,509

Adjustment / disposals

-

-

(826)

-

(826)

At 31 December 2020

297

859

11,612

702

13,470

Charge for the year

13

270

3,560

31

3,874

Adjustment / disposals

-

-

(5,687)

-

(5,687)

At 30 June 2021

310

1,129

9,485

733

11,657

 

 

 

 

 

 

 

 

 

 

 

 

Carrying amount

 

 

 

 

 

At 30 June 2021

182

1,833

13,337

202

15,554

 

 

 

 

 

 

At 31 December 2020

195

1,816

13,081

176

15,268

 

 

 

 

 

 

At 30 June 2020

187

1,433

9,398

168

11,186

 

 

 

 

 

 

 

                     

 

 

 

 

4.         Trade and Other Receivables

 

 

 

Jun-21

Jun-20

Dec-20

 

 

£'000s

£'000s

£'000s

 

 

 

 

 

Trade receivables - gross claim value

 

289,030

234,390

262,575

Settlement adjustment on initial recognition

(140,903)

(108,875)

(121,967)

Provision for impairment of trade receivables

(19,108)

(18,416)

(21,016)

Net trade receivables

 

129,019

107,099

119,592

Accrued income

 

30,258

23,826

27,100

Prepayments

 

1,093

526

596

Other debtors

 

95

815

643

 

 

 

 

 

 

 

160,465

132,266

147,931

 

 

 

 

 

The Group's exposure to credit and market risks, including impairments and allowances for credit losses, relating to trade and other receivables is disclosed in the financial risk management and impairment of financial assets note.

 

Trade receivables stated above include amounts due at the end of the reporting period for which an allowance for doubtful debts has not been recognised as the amounts are still considered recoverable and there has been no significant change in credit quality.

 

 

 

 

5.         Borrowings

 

 

 

 

 

 

 

 

Jun-21

Jun-20

Dec-20

 

 

£'000s

£'000s

£'000s

Non-current loans and borrowings

 

 

 

 

Other borrowings

 

3,029

2,021

3,681

Lease liabilities

 

7,382

5,576

8,945

 

 

10,411

7,597

12,626

 

 

 

Current loans and borrowings

 

 

 

 

Invoice discounting facility

 

15,449

17,320

16,341

Revolving credit facility

8,000

8,000

8,000

Other borrowings

 

5,332

1,208

6,953

Lease liabilities

 

6,619

4,204

4,753

 

 

35,400

30,732

36,047

 

 

 

 

 

               

 

Direct Accident Management Limited uses an invoice discounting facility which is secured on the trade receivables of that company. Security held in relation to the facility includes a debenture over all assets of Direct Accident Management Limited dated 11 October 2016, extended to cover the assets of Anexo Group Plc and Edge Vehicles Rentals Group Limited from 20 June 2018 and 28 June 2018 respectively, as well as a cross corporate guarantee with Professional and Legal Services Limited dated 21 February 2018.

 

In July 2020 Direct Accident Management Limited secured a £5.0 million loan facility from Secure Trust Bank Plc, under the Government's CLBILS scheme. The loan was secured on a repayment basis over the three year period, with a three month capital repayment holiday, £2.0 million of which was to be paid as a final instalment.

 

Direct Accident Management Limited is also party to the number of finance leases which are secured over the respective assets funded.

 

The revolving credit facility is secured by way of a fixed charge dated 26 September 2019, over all present and future property, assets and rights (including uncalled capital) of Bond Turner Limited. The loan is structured as a revolving credit facility which is committed for a three-year period, until 27 September 2022, with no associated repayments due before that date. Interest is charged at 3.25% over LIBOR.

 

In July 2020 Anexo Group Plc secured a loan of £2.1m from a specialist litigation funder to support the investment in marketing costs associated with the VW Emissions Class Action. The terms of the loan are that interest accrues at the rate of 10% per annum, with maturity at the earlier of settlement of the claim and receipt of the proceeds or three years from the date of receipt of funding. In addition to the interest charges the loan attracts a share of the proceeds to be determined by reference to the level of fees generated for the Group.

 

 

 

 

 

 

 

- Ends -

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