10th Sep 2019 11:53
(Alliance News) - Anexo Group PLC on Tuesday said its profit very nearly doubled in the first half of 2019 thanks to an 80% jump in Credit Hire division revenue.
The credit hire and legal services provider, which provides replacement vehicles for drivers involved in accidents, reported a GBP10.4 million pretax profit for the six months ended June 30. This was close to double its GBP5.3 million profit a year before.
Revenue shot up 56% to GBP36.7 million from GBP23.6 million, including a sharp 80% increase in Credit Hire revenue to GBP23.2 million from GBP12.9 million.
This was due to a 64% increase in credit hire vehicles on the road to 1,496 from 912 the year before.
"The board has not sought to further increase the number of vehicles on hire in the last six months, in order to allow the group to concentrate on the development of the litigation division and increasing the group's rate of cash collections. However, the like-for-like increase in vehicles on the road has resulted in growth in Credit Hire revenue," said Executive Chair Alan Sellers.
The firm has proposed an interim dividend of 1.00 pence per share. The company commenced paying dividend in 2018 with its final 1.5p per share dividend.
Sellers said: "We are pleased to report another strong set of results, with all key financial metrics and [key performance indicators] ahead of the comparative period last year. At the time of our AIM IPO in June 2018, we outlined a number of key objectives such as expanding the vehicle fleet, opening a regional office and further legal recruitment and I am delighted to report that a year later we have made excellent progress on these objectives which is reflected in these half year results.
"Anexo remains extremely well positioned to grow its market share and take advantage of the opportunities available to it. The board views the current financial year and beyond with considerable optimism."
Shares in Anexo were down 1.8% at 188.00 pence in London on Tuesday morning.
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