13th Aug 2020 15:50
(Alliance News) - Anexo Group PLC on Thursday said its profit for the first half of 2020 fell as the business took a hit due to the Covid-19 pandemic but said it remains confident on a rebound in the second half of the year.
Shares in the credit hire and legal services firm were trading 2.4% lower at 134.19 pence each on Thursday afternoon in London.
For the six months ended June 30, Anexo posted pretax profit of GBP6.3 million, down 39% year-on-year from GBP10.4 million. This was as revenue dropped slightly to GBP36.6 million from GBP36.7 million and administrative expenses rose to GBP18.0 million from GBP13.6 million.
The company said the number of vehicles on the road fell sharply and weekly levels of new business fell to around 25% during the lockdown period.
An interim dividend of 0.5p was declared, halved from 1.0p the year prior.
Looking ahead, however, Anexo said recent activity levels indicate a strong second half performance for the Credit Hire division, stating that the outlook for its Legal Services division is also positive
"While uncertainty remains on the future economic impacts of the Covid-19 pandemic, with seven months of trading completed, the board notes the rebound in vehicle numbers within the Credit Hire division and is confident that H2 2020 should recover strongly. The board is confident of the group's ability to continue on its growth trajectory and, mindful of the significant possible opportunities which may arise from the current disruption, looks to the future with considerable optimism," said Executive Chair Alan Sellers.
Cash held as at the end of June was GBP11.2 million.
By Ife Taiwo; [email protected]
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