Anexo Group lifts profit expectations as it pursues growth

Credit hire and legal services provider Anexo Group updated the market on its trading on Tuesday, reporting that it had recently successfully renegotiated its working capital facilities and secured “considerable improvement” in its financing arrangements from both new and existing providers.

The AIM-traded company said it had also agreed new terms with its existing fleet insurance provider, which were expected to deliver enhanced savings against its original forecasts for the remainder of the 2019 financial year and for 202.

It said those achievements highlighted the “growing strength” of its negotiating position, as well as the “quality” of systems in place to mitigate risk.

Additionally, it said the targeting of specific claims types from the impecunious marketplace had allowed it to deploy capital into the most valuable claims, enhancing its average claim statistics and underlying profitability.

“The growth of the new regional office of Bond Turner, the group's legal services division, continues to result in increased levels of case settlements, cash collection and overall legal fee income,” the board said in its statement.

“The board is pleased to announce that the increased capacity generated by its expansion has achieved a record level of cash collection for the month of July.

“Taking these matters together, the board now confirms that profit before tax will significantly exceed current market expectations of £20m.”

Anexo Group said it would announce its interim results for the six months ended 30 June on 10 September.