In a trading update for the year to 31 December 2021, the specialist integrated credit hire and legal services provider, Anexo Group (ANX ), told investors that revenue growth has exceeded forecasts and that pre-tax profit is expected to be significantly ahead of market expectations.
The London-listed firm said its growth strategy has been supported by a sustained recovery in its core business following the easing of the second national lockdown back in March 2021.
The number of vehicles on the road in the Company’s credit hire division, EDGE, reached ‘record numbers’ in the second half of 2021 (‘2H21’), peaking at around 2,500 in December 2021, while the number of vehicles on the road currently stands at 2,300, it told investors.
It said a strong performance has been underpinned by a number of factors, including strong growth in the motorcycle courier market and the withdrawal of competitors due to Covid.
Anexo said the implementation of the Civil Liability Act in May 2021 as well as the deal with MCE previously announced on 25 November 2021 has also contributed to revenue growth.
The gradual re-opening of the courts has benefitted the legal division, Bond Turner, enabling litigators to increase case settlements and cash collection to support a rise in new cases. The Company said this trend is expected to continue as more courts return to normal working.
Last month, the Group formed a new Housing Disrepair team within Bond Turner. Anexo said the team has made ‘a strong start,’ with both new case and settlement numbers ahead of internal forecasts. It said it now looks forward to considerable growth in this area in 2022.
In addition, the Company said it continues to monitor developments in its legal action against the German automotive company Volkswagen AG, also known as the ‘VW Emissions’ case.
The Group is actively engaged with approximately 15,000 claims. As previously announced, all costs associated with marketing and the processing of claims have been expensed as incurred; investment in case acquisition and development in 2021 totalled £800,000.
The Company said it expects to announce its final results for FY21 on 11 May 2022.
Last month, Anexo acknowledged a judgement made in the High Court of Justice regarding the class action against Volkswagen and its subsidiaries in the ongoing VW Emissions case.
The specialist integrated credit hire and legal services provider said that the High Court “has ruled VW’s attempt to strike out the deceit element of the claims against it to be without merit.”
A specialist team within Anexo’s legal services division, Bond Turner, is acting on behalf of a number of individuals who have registered their intention to pursue a claim against VW.
The number of claims being handled by the division stands at around 15,000, with some costs involved in the acquisition of claimants have been covered by specialist litigation funding.
VW has already been involved in and settled a number of legal actions concerning emissions in various jurisdictions globally and the quantum of damages awarded has varied widely.
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