20th Aug 2024 14:16
(Alliance News) - Anexo Group PLC on Tuesday reported weaker financial results for the half and announced new funding agreements secured post period end.
The Liverpool, England-based integrated credit hire and legal services company said pretax profit fell 61% to GBP5.9 million in the first half that ended June 30 from GBP15.2 million the previous year when figures were boosted by a GBP7.2 million settlement with Volkswagen AG in relation to emissions claim litigation.
Total revenue declined 12% to GBP68.7 million from GBP77.8 million, while cost of sales increased 28% to GBP18.9 million from GBP14.7 million.
Credit Hire revenue grew 22% to GBP35.2 million whereas Legal Services revenue fell 32% to GBP33.5 million.
Administrative expenses reduced by 10% to GBP35.2 million from GBP39.2 million.
Executive Chair Alan Sellers said: "The group has demonstrated an improvement in performance in the core business, excluding the impact of VW from H1 2023. This is particularly pleasing with a reported 13% increase in new vehicle claims funded and 10% increase in legal staff, the associated costs being expensed as incurred.
"The group has secured a meaningful increase in headroom across all our principal funding facilities, allowing the board to react to opportunities to drive additional shareholder returns. The board looks to the second half of 2024 and beyond with optimism."
In August, Anexo agreed to a GBP30 million loan facility with Callodine Commercial Finance LLC, of which GBP20 million is drawn down to provide headroom and repay a GBP7.5 million loan provided by Blazehill Capital Ltd in 2022.
Anexo also secured an increase in the funding available under a facility provided by Secure Trust Bank PLC and extended the funding period within the GBP40m facility limit previously agreed.
Looking ahead, second half performance is expected to outperform the first six months as a result of seasonality with continued growth in cash collections anticipated.
Anexo shares were down 1.3% to 63.00 pence each in London on Tuesday afternoon.
By Elijah Dale, Alliance News reporter
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