Liverpool-based Anexo Group, the AIM-listed credit hire and legal services firm, said on Monday its first-half revenue rose 31.9% to £48.3 million and profit before tax rose by 40.5% to £8.9 million in the six months to June 30.
Anexo said it expects second-half underlying profit before tax to continue to improve “as cash collections grow, the number of cases settled in court increases following the reopening of courts in May 2021 for face-to face-hearings, and vehicle numbers continue to reach record levels.”
The firm said its number of vehicles on the road stood at 2,023 as at September 7, 2021.
Anexo said it is engaged in negotiations with its existing finance providers for an increase in its current debt facilities, which it said will allow it to take advantage of opportunities presented in both the credit hire and legal services divisions.
The firm’s net debt balance at June 30, 2021, stood at £44.4 million, up from £27.1 million a year earlier.
Last month, private equity firm DBAY Advisors Limited decided not to make a takeover offer for Anexo.
On June 23, Anexo had said it received an approach from DBAY Advisors regarding a possible cash offer for Anexo worth £174 million with an indicated offer price of £1.50 per share.
Last November, DBAY Advisors agreed to acquire a minority stake of 29% in Anexo. DBAY has offices in the Isle of Man and London.
Anexo Group executive chairman Alan Sellers said: “I am pleased to report that the group has performed robustly during the first half of the year, notwithstanding the considerable challenges posed by the COVID-19 pandemic.
“Business activity in both our credit hire and legal services divisions have recovered strongly.
“We continue to put record numbers of vehicles on the road and to maximise cash collections by carefully managing hire periods and increasing the overall number of case settlements.
“The rise in vehicle demand and our continued focus on cash collections provide an excellent opportunity to further implement the group’s fundamental growth strategy.
“Our existing finance providers have offered increased facilities, the details of which are currently being finalised.
“These will allow us to increase the deployment of our fleet and accelerate the number of new cases we take on, while enabling ongoing investment in high quality litigators; thereby ensuring we maintain the relationship between new business and settlement capacity which has been the focus of the group since listing.
“Following the amicable cessation of exploratory takeover talks, DBAY Advisers Ltd retains a seat on the board as a major supportive shareholder.
“We believe that our growth strategy offers the best possible opportunity to create significant value for all our shareholders.
“We remain committed to our stated dividend policy and we look to the future with confidence.”