Source - LSE Regulatory
RNS Number : 9257Z
Anexo Group PLC
20 September 2022
 

For immediate release

20 September 2022

 

Anexo Group plc

('Anexo' or the 'Group')

 

Interim Results for the six months ended 30 June 2022

 

"Significant revenue and profit growth with unchanged outlook for the year"

Anexo Group plc (AIM: ANX), the specialist integrated credit hire and legal services provider, is pleased to report its Interim Results for the six months ended 30 June 2022 ('H1 2022' or the 'period')

                                                                                                                     

Financial Highlights

 

H1 2022

H1 2021

Movement

 

Revenue

£68.6 million

£48.3 million

+42.0%

Operating profit

£16.1 million

£10.4 million

+54.8%

Profit before tax

£13.6 million

£8.9 million

+52.8%

Net assets

£137.8 million

£117.8 million

+17.0%

Cash collection

£67.9 million

£56.7 million

+19.8%

Basic EPS

9.3 pence

6.1 pence

+52.5%

 

·    

Revenue increased 42% to £68.6 million (H1 2021: £48.3 million) from increased vehicles on hire and growth in legal fee earners

·    

Operating profit increased 55% per cent to £16.1 million (H1 2021: £10.4 million) from improved cash collections, leverage of overhead, maximising opportunities within credit hire and an improved vehicle mix

·    

Cash collections from settled cases increased 20% to £67.9 million (H1 2021: £56.7 million) with strong sales growth driving an increase in Trade Receivables to £209.8 million (30 June 2021: £160.5 million, 31 December 2021: £188.1 million)

·    

Net debt (including lease liabilities) as 30 June 2022: £74.2 million (30 June 2021: £44.4 million, 31 December 2021: £62.0 million)

 

 

Operational Highlights

 

·    The Group has shown robust growth across both its divisions with strong growth in Group vehicle numbers and high-quality senior fee earner recruitment in the legal division

·    Vehicle numbers which grew rapidly in the first half of the year are now being carefully managed to maximise efficient use of working capital

·    The number of Group vehicles on the road on 31st August 2022 was 1,828

·    The proportion of the vehicle fleet composed of motorcycles continues to increase following the agreement with MCE Insurance in the fourth quarter of 2021

·    Good progress is being made with the Volkswagen AG ("VW") emissions case ahead of the scheduled court date in early 2023. The Group has committed the £2 million of funding raised at the end of 2021 towards the acquisition of Mercedes emissions cases. Total cumulative investment in both VW and Mercedes cases is £5.8 million, all of which has been expensed including £1.3 million in the first half of 2022 (H1 2021: £0.5 million)

·    The Group's burgeoning Housing Disrepair ("HDR") business has gained significant traction in the first half, with approximately 2,300 cases overall, of which almost 600 settled in the first half of the year. HDR revenue more than doubled in the first half to £4.7 million (2021: £2.2 million), with profit of £2.4 million (2021 H1: £1.1 million).

 

 

 



Outlook

 

The Group has shown robust growth during the period and plans to optimise cash generation in the second half year. The Board has confidence in meeting market expectations for the year with a focus on improving the vehicle mix, building on the strong progress in Housing Disrepair and maximising the emissions opportunities.  

 


 


 


 

KPIs

 

H1 2022

H1 2021

Movement

 

Number of vehicles on hire at the period end

1,947

1,740

+11.9%

 

Average number of vehicles on hire for the period

 

2,043

 

1,461

+39.8%

 

Completed vehicle hires

5,501

4,081

+34.8%

 

Number of hire cases settled

3,563

2,924

+21.9%

 

Number of new cases funded

5,082

4,208

+20.8%

 

Cash collections from settled cases (£'000s)

67,931

56,665

+19.9%

 

Legal staff employed at period end

633

578

+9.5%

 


 



 


 



 

 

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

 

"I am delighted to report that the Group has continued its strong performance during the first half of the year. Business activity in both our credit hire and legal services divisions has grown strongly.

 

"We are proud of the social value of the services we offer. Anexo provides assistance to people who find themselves in an invidious position through no fault of their own, whether through being deprived of an essential vehicle or through living in substandard housing conditions, along with the other problems which may be exacerbated by such situations. We remain committed to providing help to those who might otherwise be unable to obtain redress.

 

"We continue to manage our vehicle fleet carefully and to maximise cash collections by identifying appropriate hire opportunities, particularly within the motorcycle sector; this allows for more efficient use of working capital whilst also increasing the overall number of case settlements.

 

"The strong progress being made in housing disrepair and emissions will underpin the continued growth in the core business, and the Board remains confident in meeting market expectations for the year."

 

 

 

- Ends -

 

 

 

 

 

 

Results Conference Call

An analyst conference call will be held at 09:30 BST today, 20 September 2022. 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: https://www.anexo-group.com/.

 

For further enquiries:

Anexo Group plc

+44 (0) 151 227 3008

www.anexo-group.com

Alan Sellers, Executive Chairman

Mark Fryer, Chief Financial Officer

Nick Dashwood Brown, Head of Investor Relations

 

WH Ireland Limited

(Nominated Adviser & Joint Broker)

 

Chris Hardie / Darshan Patel / Enzo Aliaj (Corporate)

Fraser Marshall / Harry Ansell (Broking)

  +44 (0) 20 7220 1666

www.whirelandplc.com/capital-markets

 

Arden Partners plc

(Joint Broker)

John Llewellyn-Lloyd / Louisa Waddell (Corporate)

Tim Dainton (Equity sales)

 

 


+44 (0) 20 7614 5900

www.arden-partners.co.uk

 

 


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. Bond Turner is also involved in litigation relating to Housing Disrepair and emissions claims against major motor manufacturers.

 

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 2022. The Group has continued to demonstrate the effectiveness of its business model. Vehicle numbers within the credit hire division have grown, while increased case settlements within the legal services division have ensured a good rise in cash collections.

Demand for hire vehicles shows no signs of abating. We continue to recruit staff in targeted areas within the legal services division, while case settlements and cash collections continue to grow. This points to plenty of opportunities for the Group, albeit at lower levels of growth to ensure that cash generation can be further improved.

H1 2022 Group Performance

Anexo has delivered a strong performance across all key Group financial metrics and KPIs over the first six months of the year. Group revenues in H1 2022 increased by 42% to £68.6 million (H1 2021: £48.3 million) and profit before tax rose by 52% to £13.6 million (H1 2020: £8.9 million).

Credit Hire Division

Demand for vehicles has remained strong throughout the period following the decisive return of traffic levels to pre-pandemic levels. The average number of vehicles on the road during H1 2022 reached 2,043 (H1 2021: 1,461), a 40% increase on the prior year. The Group is committed to careful management of vehicle numbers to maximise efficient use of working capital; as a consequence, the overall number of vehicles on the road has been declining toward the end of the first half of the year and at the period end the number stood at 1,947. This still represents an 11.9% increase on the H1 2021 number but shows a reduction of 17.7% on the 2,366 vehicles on the road at the end of FY 2021.

This performance led to growth in Credit Hire revenue of 62%, up from £26.3 million in H1 2021 to £42.5 million in H1 2022. Profit before tax in the Credit Hire division rose by 36% to £10.9 million in H1 2022 (H1 2021: £8.0 million). Completed vehicle hires rose by 35% to 5,501 in H1 2022 (H1 2021: 4,081). This increase has been supported by the agreement with MCE Insurance announced on 25 November 2021 as well as by a number of protocols with insurance counterparties.

Legal Services Division

Credit Hire

The Group remains committed to its strategy of increasing its claim settlement capacity, thereby maximising cash collections. The number of senior fee earners employed at the end of H1 2022 rose by 41% to 247 (H1 2021: 175) and the overall number of legal staff rose from 578 in H1 2021 to 633 in H1 2022, an increase of 10%.

This investment has underpinned continued growth in cash collections, which rose 20% in H1 2021 to a total of £67.9 million (H1 2021: £56.7 million). Revenues from the Legal Services division, which strongly converts to cash, increased by 8.1% to £21.4 million in H1 2022 (H1 2021: £19.8 million). Profit before taxation rose from £1.5 million in H1 2021 to £2.5 million in H1 2022, an increase of 67%. The Group expects this revenue trend to continue as more of our staff reach maturity from a cash collection and settlement position.

Housing Disrepair

The Group's Housing Disrepair ("HDR") division continues to show significant growth. The number of ongoing claims currently stands at approximately 2,300 cases. HDR continues to require additional cash funding; this amounted to £0.3 million in the first half year, with profit of £2.4 million (2021 H1: £1.1 million).

Emissions Litigation

The advocacy team continues to act on behalf of a number of individuals in the pursuit of a claim against VW and its subsidiaries (the "VW Emissions case"). The Group announced on 26 May 2022 that it is engaged in approximately 13,000 cases. The Group remains in discussions with VW and its representatives around a possible settlement of these claims.

The Group continues to pursue other emissions cases, particularly in relation to Mercedes Benz. Total expenditure that has been expensed in the H1 2022 is £1.3 million (H1 2021: £0.5 million). The Group currently has approximately 4,000 Mercedes cases.

The Board believes there is a significant short-term opportunity to accelerate growth in emissions claims against specific vehicle manufacturers, as well as HDR claims. Accordingly, the Group has negotiated an increase in its loan agreement with Blazehill Capital, first announced on 11 May 2022, from £7.5 million to £15 million. The funds will be drawn down immediately to take advantage of this opportunity. The costs in targeting further emissions claims will be expensed in the normal way and the Group will update the market with details of emissions expenditure on a regular basis.

Dividend

The Board believes that the emissions opportunity warrants significantly increased investment over the next few months and has therefore resolved that the interests of the Group and its shareholders would be best served by paying an annual dividend following the announcement of the Group's full year results.

Outlook

The Group has shown robust growth in the first half and plans to optimise cash generation in the second half year with a focus on improving the vehicle mix. The Board has confidence in meeting market expectations for the year with a focus on continuing the strong progress in Housing Disrepair and maximising the emissions opportunities. 

 

 

Alan Sellers

Executive Chairman

20 September 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statement of Comprehensive Income

For the unaudited period ended 30 June 2022

 



Unaudited

Unaudited

Audited

 


Half year

ended

Half year

ended

Year ended

 


30-Jun-22

30-Jun-21

31-Dec-21

 

Note

£'000s

£'000s

£'000s






Revenue

2

68,610

48,316

118,237

Cost of sales


(16,253)

(10,668)

(26,756)

Gross profit


52,357

37,648

91,481



 



Depreciation & profit / loss on disposal


(5,561)

(3,809)

(8,504)

Amortisation


(74)

(65)

(137)

Administrative expenses


(30,759)

(23,171)

(55,112)

Operating profit before share based payments


15,963

10,603

27,728



 



Share based payment charges


175

(236)

(378)

Non-recurring administrative expenses


-

-

-

Operating profit


16,138

10,367

27,350



 



Net financing expense


(2,500)

(1,456)

(3,604)



 



Profit before tax


13,638

8,911

23,746

Taxation


(2,734)

(1,810)

(4,598)

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


10,904

7,101

19,148



 



Earnings per share


 



Basic earnings per share (pence)

9.3

6.1

16.5


 



Diluted earnings per share (pence)

9.3

6.0

16.2

 

The above results were derived from continuing operations.

 

 



 

Consolidated Statement of Financial Position

Unaudited at 30 June 2022

 



Unaudited

Unaudited

Audited

 


30-Jun-22

30-Jun-21

31-Dec-21

Assets

Note

£'000s

£'000s

£'000s

Non-current assets


 



Property, plant and equipment

3

2,323

2,217

2,071

Right-of-use assets


16,816

13,337

16,896

Intangible assets


112

238

188

Deferred tax assets


112

112

112



19,363

15,904

19,267

Current assets


 



Trade and other receivables

4

209,817

160,485

188,134

Corporation tax receivable


-

439

-

Cash and cash equivalents


1,247

1,418

7,562



211,176

162,342

195,696



 



Total assets


230,427

178,246

214,963



 



Equity and liabilities


 



Equity


 



Share capital


59

58

58

Share premium


16,161

16,161

16,161

Share based payment reserve


-

1,935

2,077

Retained earnings


121,554

99,621

109,928

Equity attributable to the owners of the Group

137,774

117,775

128,224



 



Non-current liabilities


 



Other interest-bearing loans and borrowings

5

20,710

3,029

13,814

Lease liabilities


8,462

7,382

8,430

Deferred tax liabilities


-

32

32



29,172

10,443

22,276



 



Current liabilities


 



Other interest-bearing loans and borrowings

5

37,235

28,781

38,499

Lease liabilities


9,018

6,619

8,833

Trade and other payables


9,966

9,108

12,635

Corporation tax liability


7,262

5,520

4,496



63,481

50,028

64,463



 



Total liabilities


92,653

60,471

86,739

 


 



Total equity and liabilities


230,427

178,246

214,963

 


 








 

 



 

Consolidated Statement of Changes in Equity

For the unaudited period ended 30 June 2022

 



Share capital

Share

premium

Share based payment reserve

Retained

earnings

Total

 

 


£'000s

£'000s

£'000s

£'000s

£'000s

 

 







 

At 1 January 2022


58

16,161

2,077

109,928

128,224

 

Profit for the period and total comprehensive income

-

-

-

10,904

10,904

 

Issue of share capital


1

-

-

-

1

 

Share based payment charge


-

-

(175)

-

(175)

 

Transfer of share based payment reserve


-

-

(1,902)

1,902

-

 

Dividends


-

-

-

(1,180)

(1,180)

 








 

At 30 June 2022

 

59

16,161

-

121,554

137,774

 

 







 

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

 

Profit for the period and total comprehensive income

-

-

-

12,047

12,047

 

Share based payments charge


-

-

142

-

142

 

Adjustment

-

-

-

-

-

 

Dividends

-

-

-

(1,740)

(1,740)

 








 

At 31 December 2021


58

16,161

2,077

109,928

128,224

 








 



 

Anexo Group Plc

Consolidated Statement of Cash Flows

For the unaudited period ended 30 June 2022



Unaudited

Unaudited

 

 


Half year

ended

Half year

ended

Audited

Year ended

 


30-Jun-22

30-Jun-21

31-Dec-21

 

 

£'000s

£'000s

£'000s

Cash flows from operating activities





Profit for the year


10,904

7,101

19,148

Adjustments for:


 



Depreciation and profit / loss on disposal


5,561

3,809

8,504

Amortisation


74

65

137

Financial expense


2,500

1,456

3,604

Share based payment charge


(175)

-

378

Taxation


2,734

1,810

4,598



21,598

14,241

36,369

Working capital adjustments


 



Increase in trade and other receivables


(21,682)

(12,577)

(40,224)

Increase in trade and other payables


(2,667)

(160)

3,131

Cash generated from operations


(2,751)

1,504

(724)



 



Interest paid


(2,380)

(1,335)

(3,364)

Tax repaid


-

154

(3,219)

Net cash from operating activities


(5,131)

323

(7,307)



 



Cash flows from investing activities


 



Proceeds from sale of property, plant and equipment


722

448

941

Acquisition of property, plant and equipment

(1,285)

(497)

(1,439)

Investment in intangible fixed assets

-

(70)

(91)

Net cash from investing activities


(563)

(119)

(589)



 



Cash flows from financing activities


 



Proceeds from new loans


10,265

908

25,039

Dividends paid


(1,180)

-

(1,740)

Repayment of borrowings


(4,753)

(4,171)

(7,951)

Lease payments


(4,953)

(3,743)

(8,110)

Net cash from financing activities


(621)

(7,006)

7,238



 



Net decrease in cash and cash equivalents

(6,315)

(6,802)

(658)

Cash and cash equivalents at 1 January

 

7,562

8,220

8,220

Cash and cash equivalents at period end

 

1,247

1,418

7,562



 





 

 

Anexo Group Plc

Notes to the Interim Statements

For the unaudited period ended 30 June 2022

 

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 2021 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 2022 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 2023.  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

·      vehicle emissions litigation, 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 2022

 


Credit Hire

Legal Services

Housing Disrepair

Emissions

Group and Central Costs

Consolidated

 

 

£'000s

£'000s

£'000s

£'000s

£'000s

£'000s

 

Revenues

 






 

Third party

42,503

21,392

4,715

-

-

68,610

 

Total revenues

42,503

21,392

4,715

-

-

68,610

 








 

Profit before taxation

10,941

2,527

 

2,353

 

(1,278)

 

(905)

13,638

 








 

Net cash from operations

(3,990)

2,228

 

(257)

 

(1,278)

 

(1,834)

(5,131)

 




 

 

 

 



 

Depreciation

4,990

645

-

-

-

5,635

 








 

Segment assets

176,822

46,927

6,358

-

320

230,427

 

 







 

Capital expenditure

1,198

87

 

-

 

-

 

-

1,285

 








 

Segment liabilities

61,320

25,278

-

5,801

254

92,653

 








 

 







 










 






Half year ended 30 June 2021

 


Credit Hire

Legal Services

Housing Disrepair

Emissions

Group and Central Costs

Consolidated

 

 

£'000s

£'000s

£'000s

£'000s

£'000s

£'000s

 

Revenues

 






 

Third party

26,306

19,795

2,215

-

-

48,316

 

Total revenues

26,306

19,795

2,215

-

-

48,316

 








 

Profit before taxation

7,970

1,536

 

1,054

 

(477)

 

(1,172)

8,911

 








 

Net cash from operations

284

1,744

 

(531)

 

(477)

 

(697)

323

 








 

Depreciation

3,138

736

-

-

-

3,874

 








 

Segment assets

130,723

44,514

2,293

-

716

178,246

 








 

Capital expenditure

243

254

 

-

 

-

 

-

497

 








 

Segment liabilities

37,681

20,224

-

2,351

215

60,471

 








 

Year ended 31 December 2021


Credit Hire

Legal Services

 

Housing Disrepair

 

Emissions

 

Group and Central Costs

Consolidated

 

 

£'000s

£'000s

£'000s

£'000s

£'000s

£'000s

 

Revenues

 






 

Third party

71,338

41,823

5,076

-

-

118,237

 

Total revenues

71,338

41,823

5,076

-

-

118,237

 








 

Profit before taxation

19,811

4,423

 

2,592

(819)

(2,261)

23,746

 








 

Net cash from operations

(10,654)

5,637

 

(568)

(819)

(903)

(7,307)

 








 

Depreciation

7,205

1,436

-

-

-

8,641

 








 

Segment assets

161,578

49,545

3,648

-

192

214,963

 








 

Capital expenditure

998

441

 

-

-

-

1,439

 








 

Segment liabilities

55,415

25,413

-

5,501

410

86,739

 








 

 



 

 

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 2021

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

Additions

2

163

8,394

28

8,587

Disposals

-

-

(1,572)

(334)

(1,906)

At 31 December 2021

494

3,125

29,644

629

33,892

Additions

152

193

5,845

266

6,456

Disposals

-

-

(3,976)

-

(3,976)

At 30 June 2022

646

3,318

31,513

895

36,372







Depreciation

 





At 1 January 2021

297

859

11,612

702

13,470

Charge for year

13

270

3,560

31

3,874

Eliminated on disposal

-

-

(5,687)

-

(5,687)

At 30 June 2021

310

1,129

9,485

733

11,657

Charge for the year

12

289

4,479

38

4,818

Disposals

-

-

(1,216)

(334)

(1,550)

At 31 December 2021

322

1,418

12,748

437

14,925

Charge for the year

16

288

5,300

55

5,659

Adjustment / disposals

-

-

(3,351)

-

(3,351)

At 30 June 2022

338

1,706

14,697

492

17,233













Carrying amount

 





At 30 June 2022

308

1,612

16,816

403

19,139







At 31 December 2021

172

1,707

16,896

192

18,967







At 30 June 2021

182

1,833

13,337

202

15,554







 

 



 

 

4.         Trade and Other Receivables

 



Jun-22

Jun-21

Dec-21

 


£'000s

£'000s

£'000s

 





Trade receivables - gross claim value


370,433

289,030

325,260

Settlement/impairment provision

(205,966)

(160,011)

(178,867)

Net trade receivables


164,467

129,019

146,393

Accrued income


44,177

30,258

39,431

Prepayments


821

1,093

1,849

Other debtors


352

95

461



 





209,817

160,465

188,134






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-22

Jun-21

Dec-21



£'000s

£'000s

£'000s

Non-current loans and borrowings

 




Revolving credit facility


10,000

-

10,000

Other borrowings


10,710

3,029

3,814

Lease liabilities


8,462

7,382

8,430



29,172

10,411

22,244



 

Current loans and borrowings

 

 



Invoice discounting facility


31,364

15,449

29,258

Revolving credit facility

-

8,000

-

Other borrowings


5,871

5,332

9,241

Lease liabilities


9,018

6,619

8,833



46,253

35,400

47,332






 

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 £5.0m 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.

 

Direct Accident Management Limited is also party to a number of 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 13 October 2024, with no associated repayments due before that date. Interest is charged at 3.25% over the Respective Rate.

 

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 three years from the date of receipt of funding with an option to repay early without charge. 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.

 

In November 2021 a further £3.0m loan was sourced from certain of the principal shareholders and directors of the Group to support the investment in 2022 of the Mercedes Benz emissions claim. The terms of the loan are that interest accrues at the rate of 10% per annum, with maturity two years from the date of receipt of funding with an option to repay early without charge. 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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