RNS Number : 9794J
Anexo Group PLC
22 August 2023
 

For immediate release

22 August 2023

 

Anexo Group plc

('Anexo' or the 'Group')

 

Interim Results for the six months ended 30 June 2023

 

"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 2023 ('H1 2023' or the 'period').

 

Financial Highlights

 

H1 2023

H1 2022

Movement

 

Revenue

£77.8 million

£68.6 million

+13.4%

Operating profit

£19.3 million

£16.1 million

+19.9%

Profit before tax

£15.2 million

£13.6 million

+11.8%

Cash collection

£77.4 million

£67.9 million

+14.0%

Basic EPS

8.6 pence

9.3 pence

-7.5%

 

 

·           A significant reduction in Net Debt (including lease liabilities) was reported in the period (£11.9 million). Net Debt as at 30 June 2023 stood at £61.2 million (30 June 2022: £74.2 million, 31 December 2022: £73.1 million).

·           Cash collections from settled cases increased 14% to £77.4 million (H1 2022: £67.9 million), excluding the legal fees associated with the Volkswagen AG ('VW') Emissions Claim.

·           The Group generated £15.7 million in Net Cash from Operating Activities (H1 2022: Net Cash Used in Operating Activities: £5.1 million), a total improvement of £20.8 million.

·           Revenue increased 13% to £77.8 million (H1 2022: £68.6 million), reflecting the agreement reached in the VW Emissions Claim and increased legal fee income from both Credit Hire and Housing Disrepair ("HDR") claim settlements.

·           Operating profit increased 19% to £19.3 million (H1 2022: £16.1 million) due to improved cash collections from all divisions in addition to the proceeds of the VW agreement, whilst the number of new credit hire cases has been actively managed.

 

Operational Highlights

 

·           The Group has shown robust growth within legal services, driving the increase seen in cash collections. HDR continues to be an ever-increasing element, with revenues increasing by over 25%. The HDR division settled 884 claims in H1 2023 (H1 2022: 556) and now has a portfolio of 3,291 claims (H1 2022: 2,218).

·           The results for the period include the agreement reached in the VW emissions case. The terms of the agreement are subject to confidentiality restrictions. The Group announced on 5 June 2023 that the agreement had resulted in a net positive cash position to Anexo of £7.2 million.

·           The Group continued its investment in litigation concerning the Mercedes Benz Emissions Claim, with a total of over 12,000 claimants now forming part of the group action.

·           Vehicle numbers continued to be carefully managed to maximise efficient use of working capital, supporting the significant reduction in Net Debt. Strong growth is forecast for H2 2023 resulting from a steady increase in vehicle numbers.

•          The average number of Group vehicles on the road in H1 2023 reached 1,634, some 20% below that seen in H1 2022 (2,034). Vehicle numbers at 18 August 2023 totalled 1,795.

 

KPIs

 

H1 2023

H1 2022

Movement

Cash collections from settled cases (£'000s)

77,413

67,931

+14.0%

Number of hire cases settled

4,369

3,563

+22.6%

Number of new hire cases funded

4,920

5,082

-3.2%

Completed vehicle hires

4,689

5,501

-14.8%

Number of vehicles on hire at period end

1961

1947

+0.1%

Legal staff employed at period end

690

633

+9.0%

Number of HDR cases at period end

3,291

2,218

+48.4%

Number of HDR cases settled

884

556

+59.0%

 

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

 

- Ends -

 

Results Conference Call

. Please contact Nick Dashwood Brown, Head of Investor Relations, at nick@anexo-group.com if you would like to join the call.

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, Interim Chief Financial Officer

Nick Dashwood Brown, Head of Investor Relations


WH Ireland Limited

(Nominated Adviser & Joint Broker)

 

Chris Hardie / Hugh Morgan/ Darshan Patel (Corporate)

Fraser Marshall / Harry Ansell (Broking)

  +44 (0) 20 7220 1666

www.whirelandplc.com/capital-markets

 

Zeus

(Joint Broker)

David Foreman / Louisa Waddell (Investment Banking)

Simon Johnson (Corporate Broking)

 

 


+44 (0) 20 3829 5000

www.zeuscapital.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 1,100 plus 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

 

Executive Chairman's Statement

 

On behalf of the Board, I am pleased to announce Anexo's results for the six-month period ended 30 June 2023. The Group has continued to demonstrate the effectiveness of its business model, concentrating firmly on the transition of the Group to a cash generative position and the achievement of a reduction in net debt. Vehicle numbers within the credit hire division have been actively managed, while increased case settlements within the legal services division, including HDR, have driven the rise in cash collections.

 

The strong performance in the first half of the year will enable the Group to continue accepting an increased number of claims in the second half leading to an improvement in both revenues and profitability without the need to increase debt.

 

H1 2023 Group Performance

 

Anexo has actively managed the business to attain its stated goals of reducing net debt and improving the conversion of profits to free cash. The Group has delivered a strong performance across all key financial metrics and KPIs over the first six months of the year. Having increased case settlements alongside the VW Emissions agreement, Group revenues in H1 2023 increased by 13% to £77.8 million (H1 2022: £68.6 million) and profit before tax rose by 11% to £15.2 million (H1 2022: £13.6 million).

 

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 remained broadly unchanged during the period, standing at 243 as at 30 June 2023. The overall number of legal staff rose by 9% to 690 (H1 2022: 633).

 

Investment during 2022 has underpinned continued growth in cash collections, which rose 14% in H1 2023 to a total of £77.4 million (H1 2022: £67.9 million), excluding any value from the VW Emissions agreement. Revenues from the Legal Services division, which strongly converts to cash, more than doubled in the period to £43.0 million in H1 2023 (H1 2022: £21.4 million), this figure includes the proceeds from the VW agreement. Profit before taxation increased sharply from £1.2 million in H1 2022 to £11.6 million in H1 2023, reflecting an improvement in the core business activities and the VW Emissions agreement in the period.

 

Housing Disrepair

 

The Group's HDR division continues to show significant growth. The number of ongoing claims currently stands at approximately 3,300. HDR is now cash generative as the value of fee income generated from settled claims exceeds the investment in staff and marketing costs for the generation of new claims. Net cash generation totalled £0.4 million in H1 2023 (H1 2022: Net cash outflow £0.3 million). The current claims portfolio is expected to contribute to an improvement in performance in the second half of the year and beyond.

 

With an increase in revenues, HDR reported a profit of £2.6 million in the period (H1 2022: £2.4 million) having invested £2.2 million in new claims (H1 2022: £1.7 million). These marketing costs continue to be written off as incurred.

 

Emissions Litigation

 

The advocacy team reached an agreement in the claim against VW and its subsidiaries. The terms of the agreement are subject to confidentiality restrictions; the Group announced on 5 June 2023 that the agreement had resulted in a net positive cash position to Anexo of £7.2 million.

 

The Group continues to pursue litigation in other emissions cases, particularly in relation to Mercedes Benz. The Group currently has approximately 12,000 Mercedes cases (H1 2022: approximately 4,000 Mercedes cases).

 

Management believes there is a significant continued opportunity for investment in emissions claims against specific vehicle manufacturers. Accordingly, the Group has earmarked a continued ongoing level of investment for the second half of the year and beyond. Investment for the current year is being funded from an additional £2.8 million, provided to the Group in part by certain of the principal shareholders and directors of the Group.

 

Credit Hire Division

 

Whilst demand for vehicles has remained strong throughout the period, the Group has actively managed the number of new claims accepted to levels which maximise the conversion of profitability to operating cash flow whilst supporting funding into other group activities such as HDR and emissions. This also provides a strong and diverse platform for future opportunities including credit hire opportunities.

 

Having increased cash collections month on month to new record levels, the Group has increased the number of claims funded throughout H1 2023; vehicle numbers increased to 1,961 at 30 June 2023, some 20% above the average levels seen in the first half. Vehicle numbers are fundamental to managing revenues and profits, and this increase supports the Group's expectation of strong growth in the second half of the year.

 

Against the backdrop of strong demand, the considered careful management of the fleet has seen a consequent decline in Credit Hire revenue, reported at £28.9 million in H1 2023 (H1 2022: £42.5 million), and a resultant reduction in profit before tax to £2.2 million. Completed vehicle hires reduced to 4,689 in H1 2023 (H1 2022: 5,501) but with vehicle numbers now approaching 2,000, the expectation is that activity levels will rise driving a significant improvement in performance for the Credit Hire Division in the second half of the year.

 

Dividend

 

The Group continues to invest heavily in future opportunities including HDR and Emissions and the Board has therefore resolved that the interests of the Group and its shareholders would be best served by considering the position with regards to payment of a dividend following the preparation of the Group's full year results.

 

Outlook

The focus in the first half of 2023 has been firmly on the conversion of profits to operating cash flows. The Group has shown robust growth during the period and plans to continue to optimise cash generation in the second half, whilst increasing activity levels within the Credit Hire division to levels previously seen in the first half of 2022.

 

Growth in cash collections allows the Group to increase activity, including continued investment in HDR and additional emissions claims, without the need for increases in net debt. The focus for the second half is to ensure this investment is self-funded. Management has confidence in meeting market expectations for the year.

 

 

 

Alan Sellers

Executive Chairman

22 August 2023

 



 

Consolidated Statement of Comprehensive Income

For the unaudited period ended 30 June 2023

 



Unaudited

Unaudited

 

 


Half year

ended

Half year

ended

Audited

Year ended

 


30-Jun-23

30-Jun-22

31-Dec-22

 

Note

£'000s

£'000s

£'000s






Revenue

2

77,772

68,610

138,329

Cost of sales


(14,712)

(16,253)

(32,553)

Gross profit


63,060

52,357

105,776



 



Depreciation & profit / loss on disposal


(4,574)

(5,561)

(10,436)

Amortisation


(37)

(74)

(117)

Administrative expenses


(39,176)

(30,759)

(64,982)

Operating profit before exceptional items


19,273

15,963

30,241



 



Share based payment credit


-

175

175

Operating profit


19,273

16,138

30,416



 



Net financing expense


(4,085)

(2,500)

(6,323)



 



Profit before tax


15,188

13,638

24,093

Taxation


(5,110)

(2,734)

(4,616)

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


10,078

10,904

19,477



 



Earnings per share


 



Basic earnings per share (pence)

8.6

9.3

16.6


 



Diluted earnings per share (pence)

8.6

9.3

16.6

 

The above results were derived from continuing operations.

 

 



 

Consolidated Statement of Financial Position

Unaudited at 30 June 2023

 



Unaudited

Unaudited

Audited

 


30-Jun-23

30-Jun-22

31-Dec-22

Assets

Note

£'000s

£'000s

£'000s

Non-current assets


 



Property, plant and equipment

3

1,927

2,323

2,072

Right-of-use assets


10,216

16,816

12,657

Intangible assets


66

112

71

Deferred tax assets


112

112

112



12,321

19,363

14,912

Current assets


 



Trade and other receivables

4

233,501

209,817

222,272

Corporation tax receivable


1,161

-

606

Cash and cash equivalents


7,362

1,247

9,049



242,024

211,176

231,927



 



Total assets


254,345

230,427

246,839



 



Equity and liabilities


 



Equity


 



Share capital


59

59

59

Share premium


16,161

16,161

16,161

Retained earnings


138,435

121,554

130,127

Equity attributable to the owners of the Group

154,655

137,774

146,347



 



Non-current liabilities


 



Other interest-bearing loans and borrowings

5

27,760

20,710

25,000

Lease liabilities


5,842

8,462

7,176

Deferred tax liabilities


-

-

32



33,602

29,172

32,208



 



Current liabilities


 



Other interest-bearing loans and borrowings

5

30,074

37,235

43,594

Lease liabilities


4,857

9,018

6,403

Trade and other payables


20,398

9,966

13,225

Corporation tax liability


10,759

7,262

5,062



66,088

63,481

68,284



 



Total liabilities


99,690

92,653

100,492

 


 



Total equity and liabilities


254,345

230,427

246,839

 


 








 

 



 

Consolidated Statement of Changes in Equity

For the unaudited period ended 30 June 2023

 



Share capital

Share

premium

Share based payment reserve

Retained

earnings

Total

 


£'000s

£'000s

£'000s

£'000s

£'000s

 







At 1 January 2023


59

16,161

-

130,127

146,347

Profit for the period and total comprehensive income

-

-

-

10,078

10,078

Dividends


-

-

-

(1,770)

(1,770)








At 30 June 2023

 

59

16,161

-

138,435

154,655

 







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

Transfer of share based payment reserve


-

-

(1,902)

1,902

-

Share based payment charge


-

-

(175)

-

(175)

Dividends


-

-

-

(1,180)

(1,180)








At 30 June 2022


59

16,161

-

121,554

137,774

Profit for the period and total comprehensive income

-

-

-

8,573

8,573








At 31 December 2022


59

16,161

-

130,127

146,347







 



 

Anexo Group Plc

Consolidated Statement of Cash Flows

For the unaudited period ended 30 June 2023



Unaudited

Unaudited

 

 


Half year

ended

Half year

ended

Audited

Year ended

 


30-Jun-23

30-Jun-22

31-Dec-22

 

 

£'000s

£'000s

£'000s

Cash flows from operating activities





Profit for the year


10,078

10,904

19,477

Adjustments for:


 



Depreciation and profit / loss on disposal


4,574

5,561

10,436

Amortisation


37

74

117

Financial expense


4,085

2,500

6,323

Share based payment credit


-

(175)

(175)

Taxation


5,110

2,734

4,616



23,884

21,598

40,794

Working capital adjustments


 



Increase in trade and other receivables


(11,229)

(21,682)

(34,138)

(Decrease) / increase in trade and other payables


7,173

(2,667)

590

Cash generated from operations


19,828

(2,751)

7,246



 



Interest paid


(4,085)

(2,380)

(5,722)

Tax paid


-

-

(4,656)

Net cash from / (used) in operating activities


15,743

(5,131)

(3,132)



 



Cash flows from investing activities


 



Proceeds from sale of property, plant and equipment


531

722

1,579

Acquisition of property, plant and equipment

(717)

(1,285)

(1,186)

Investment in intangible fixed assets

(31)

-

-

Net cash (used in) / from investing activities


(217)

(563)

393



 



Cash flows from financing activities


 



Proceeds from new loans


8,946

10,265

24,430

Dividends paid


(1,770)

(1,180)

(1,180)

Repayment of borrowings


(19,117

(4,753)

(8,749)

Lease payments


(5,272)

(4,953)

(10,275)

Net cash from financing activities


(17,213)

(621)

4,226



 



Net (decrease) / increase in cash and cash equivalents

(1,687)

(6,315)

1,487

Cash and cash equivalents at 1 January

 

9,049

7,562

7,562

Cash and cash equivalents at period end

 

7,362

1,247

9,049



 





 

 

Anexo Group Plc

Notes to the Interim Statements

For the unaudited period ended 30 June 2023

 

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 2022 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 2023 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 2024.  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.

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

Other Legal Services and Housing Disrepair, are subsets of Legal Services. We have however, distinguished the performance of Housing Disrepair from within Legal Services as this division of the Legal Services segment is an area where the Group is investing heavily, is a focus for the Group at present and into the future and allows readers of the financial statements to understand the contribution Housing Disrepair has to the overall Group performance.  The Housing Disrepair division continues to grow and as the results become more significant to the overall Group performance this division may well become a segment in its own right, this could be reported in the 2023 financial statements.

 

Half year ended 30 June 2023

 


Credit Hire

Other Legal Services

Housing Disrepair

Group and Central Costs

Consolidated

 

 

£'000s

£'000s

£'000s

£'000s

£'000s

 

Revenues

 





 

Third party

28,858

42,968

5,946

-

77,772

 

Total revenues

28,858

42,968

5,946

-

77,772

 







 

Profit before taxation

2,233

11,578

2,639

(1,262)

15,188

 







 

Net cash from operations

4,153

12,233

372

(1,015)

15,743

 







 

Depreciation

3,995

616

-

-

4,611

 







 

Segment assets

170,295

71,814

10,872

1,364

254,345

 

 






 

Capital expenditure

420

297

-

-

717

 







 

Segment liabilities

56,339

42,887

-

464

99,690

 








 

 







 










 






Half year ended 30 June 2022

 


Credit Hire

Other Legal Services

Housing Disrepair

Group and Central Costs

Consolidated

 

 

£'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

1,249

2,353

(905)

13,638

 







 

Net cash from operations

(3,990)

950

(257)

(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

31,079

-

254

92,653

 








 

Year ended 31 December 2022


Credit Hire

Other Legal Services

 

Housing Disrepair

 

Group and Central Costs

Consolidated

 

 

£'000s

£'000s

£'000s

£'000s

£'000s

 

Revenues

 





 

Third party

74,681

54,311

9,337

-

138,329

 

Total revenues

74,681

54,311

9,337

-

138,329

 







 

Profit before taxation

8,887

15,400

4,694

(4,888)

24,093

 







 

Net cash from operations

(2,310)

3,390

258

(4,470)

(3,132)

 







 

Depreciation

9,271

1,282

-

-

10,553

 







 

Segment assets

174,503

58,562

8,084

5,690

246,839

 







 

Capital expenditure

980

206

-

-

1,186

 







 

Segment liabilities

66,507

33,985

-

-

100,492

 








 

 



 

 

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 2022

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

Additions

-

126

1,181

23

1,330

Disposals

(9)

-

(4,708)

-

(4,717)

At 31 December 2022

637

3,444

27,986

918

32,985

Additions

-

294

2,654

2

2,950

Disposals

(274)

(160)

(8,268)

(291)

(8,993)

At 30 June 2023

363

3,578

22,370

629

26,942







Depreciation

 





At 1 January 2022

322

1,418

12,748

437

14,925

Charge for year

16

288

5,300

55

5,659

Eliminated on disposal

-

-

(3,351)

-

(3,351)

At 30 June 2022

338

1,706

14,697

492

17,233

Charge for the year

19

308

4,681

64

5,072

Disposals

-

-

(4,049)

-

(4,049)

At 31 December 2022

357

2,014

15,329

556

18,256

Charge for the year

20

314

3,969

60

4,363

Disposals

(261)

(121)

(7,147)

(291)

(7,820)

At 30 June 2023

116

2,207

12,151

325

14,799













Carrying amount

 





At 30 June 2023

247

1,371

10,221

304

12,143







At 31 December 2022

280

1,430

12,657

362

14,729







At 30 June 2022

308

1,612

16,816

403

19,139







 

 



 

 

4.         Trade and Other Receivables

 



Jun-23

Jun-22

Dec-22

 


£'000s

£'000s

£'000s

 





Trade receivables - gross claim value


370,711

370,433

393,560

Settlement adjustment on initial recognition

(174,644)

(179,759)

(203,518)

Provision for impairment of trade receivables

(27,654)

(26,207)

(24,674)

Net trade receivables


168,413

164,467

165,368

Accrued income


59,861

44,177

54,778

Prepayments


6,311

821

1,603

Other debtors


885

352

523



 





233,501

209,817

222,272






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-23

Jun-22

Dec-22



£'000s

£'000s

£'000s

Non-current loans and borrowings

 




Revolving credit facility


10,000

10,000

10,000

Other borrowings


17,760

10,710

15,000

Lease liabilities


5,842

8,462

7,176



33,602

29,172

32,176



 

Current loans and borrowings

 

 



Invoice discounting facility


24,598

31,364

30,562

Other borrowings


5,476

5,871

13,032

Lease liabilities


4,857

9,018

6,403



34,931

46,253

49,997

 

 

 



Total Borrowings

 

68,533

75,425

82,173






 

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, this loan was fully repaid by 30 June 2023.

 

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, with a cross company guarantee provided by Anexo Group Plc. 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 £2.1 million from a specialist 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. Having reached agreement in the VW Emissions Class Action, this loan was fully repaid in the period to 30 June 2023.

 

In November 2021 a further £3.0 million loan was sourced from certain of the principal shareholders and directors of the Group to support the marketing investment in 2022 in 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. Having reached an agreement in the VW Emissions Class Action, this loan was partially repaid in the period to 30 June 2023 with any residual amount due upon successful conclusion of the Mercedes Benz Emissions Claim.

In March 2022 the Group secured a loan of £7.5 million from Blazehill Capital Finance Limited, with an additional £7.5 million drawn in September 2022, the total balance drawn at 30 June 2023 was £15.0 million. The loan is non amortising and committed for a three year period. Interest is charged and paid monthly at 13% above the central bank rate. The facility is secured by way of a fixed charge dated 29 March 2022, over all present and future property, assets and rights (including uncalled capital) of Direct Accident Management Limited, with a cross company guarantee provided by Anexo Group Plc.

 

In June 2023 a loan of £2.8 million was sourced from certain of the principal shareholders and directors of the Group to support further marketing in the Mercedes Benz Emissions Claim and other emissions opportunities. 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 generated for the Group from the Mercedes Benz Emissions Claim.






 

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