Anexo Group (ANX ) said its legal division, Bond Turner, continues to benefit from the re-opening of the court system, a trend that is expected to continue throughout 2022.
This re-opening has enabled litigators to increase case settlements and cash collection to support more investment in new cases, the specialist integrated credit hire and legal services provider told investors. Anexo said cash collections are currently running “at record levels.”
In a trading update ahead of the release of its results for the year to 31 December 2021, Anexo said current trading across all divisions is in line with management expectations.
Following the successful launch of the MCE insurance contract back in November 2021, the Company has modified its approach to vehicle funding accordingly. This strategy includes a continued focus on quality claims, high service standards and high success rates, it noted.
It said the adoption of this targeted approach has led to a reduction in the number of vehicles on the road within its credit hire division, EDGE, and that the current total stands at 1,955.
The Company said this represents a significant increase on the same period last year and stands at a level which facilitates management of Anexo’s working capital requirements.
In December 2021, the Group announced a new Housing Disrepair team within Bond Turner. This morning, Anexo said the team continues to perform strongly; it is currently dealing with approximately 1,800 cases and since inception it has settled approximately 850 cases.
The Board said it believes the prospects for growth within this division are very positive.
Meanwhile, the Group continues to monitor the legal action against Volkswagen AG (the ‘VW Emissions’ case).. A court date for the hearing of the class action has been set for January 2023 and the Board believes there is a likelihood of further developments during 2022.
Anexo has also announced an increase in its overall debt facilities, with new debt facilities of £7.5m having been secured from a new lender on regular commercial terms. In addition, the funding facility provided by Secure Trust Bank Plc (Secure Trust) is being increased by £7.5m through three quarterly increases of £2.5 million, taking the overall facility to £40m, it detailed.
This increased facility is provided on the same commercial terms as those announced on 30 September 2021, Anexo informed investors. The Company has also secured a further £3 million of litigation funding to support investment in further diesel emission class actions.
Alan Sellers, Executive Chairman of Anexo Group, told investors: “Overall, we have seen improvement across all business areas and our targeted approach has resulted in a continued emphasis on quality claims, high success rates and high levels of service to our customers.”
Anexo Group expects to release its results for the year ended 31 December on 11 May 2022.
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