Anexo Group plc
Visit Anexo Group plc
Description
Anexo is a specialist integrated credit hire and legal services group focused on providing replacement vehicles to consumers who have been involved in a non-fault accident. Its clients are typically impecunious and do not have options to access a replacement vehicle which allows the Group to charge credit hire rather than spot hire rates, recovering these charges from the at-fault insurer.
Our view
Anexo Group has established itself as a provider of an end-to-end litigated claims service to predominantly impecunious non-fault motorists. It provides replacement vehicles – either from its own fleet or leased - and associated legal services. It has a highly experienced management team with experience in both credit hire and legal services. Currently targeting more measured growth in credit hire while recruiting more high-quality litigators, Anexo is increasing its capacity to settle cases and improve cash generation. By executing on its growth strategy and managing that balance between new business generation and cash collection from existing cases, we expect Anexo to produce strong earnings growth and cash generation.
Financial Summary
Year end: December (£m unless shown)
| 2017 | 2018 | 2019 | 2020 | 2021 | |
|---|---|---|---|---|---|
| Revenue | 45.3 | 56.5 | 78.0 | 88.5 | 100.5 |
| Adj EBITDA | 15.8 | 18.7 | 26.9 | 30.9 | 35.0 |
| Fully Adj PBT | 14.6 | 16.1 | 23.2 | 26.1 | 28.5 |
| Fully Adj EPS (p) | 11.1 | 11.8 | 16.9 | 19.1 | 25.4 |
Profit & Loss
Year end: December (£m unless shown)
| 2017 | 2018 | 2019 | 2020 | 2021 | |
|---|---|---|---|---|---|
| Revenue | 45.3 | 56.5 | 78.0 | 88.5 | 100.5 |
| Adj EBITDA | 15.8 | 18.7 | 26.9 | 30.9 | 35.0 |
| Adj EBIT | 15.1 | 17.2 | 24.9 | 27.9 | 31.0 |
| Reported PBT | 14.6 | 14.3 | 22.8 | 25.7 | 28.1 |
| Fully Adj PBT | 14.6 | 16.1 | 23.2 | 26.1 | 28.5 |
| NOPAT | 15.1 | 17.2 | 20.4 | 22.9 | 31.0 |
| Reported EPS (p) | 11.1 | 10.2 | 16.6 | 18.8 | 20.5 |
| Fully Adj EPS (p) | 11.1 | 11.8 | 16.9 | 19.1 | 25.4 |
| Dividend per share (p) | 0.0 | 1.5 | 2.2 | 2.7 | 3.2 |
Cash Flow & Balance Sheet
Year end: December (£m unless shown)
| 2017 | 2018 | 2019 | 2020 | 2021 | |
|---|---|---|---|---|---|
| Operating cash flow | 3.1 | (2.1) | 4.1 | 18.8 | 20.7 |
| Free Cash flow | (4.0) | (13.5) | (7.3) | 5.7 | 5.5 |
| FCF per share (p) | (3.7) | (12.3) | (6.6) | 5.2 | 5.0 |
| Acquisitions | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Disposals | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Shares issued | 0.0 | 9.2 | 0.0 | 0.0 | 0.0 |
| Net cash flow | (3.8) | (2.2) | (7.3) | 5.7 | 5.5 |
| Overdrafts / borrowings | (15.2) | (22.8) | (25.8) | (25.8) | (25.8) |
| Cash & equivalents | 0.2 | 5.5 | 1.2 | 6.9 | 12.4 |
| Net (Debt)/Cash | (15.0) | (17.3) | (24.6) | (18.9) | (13.4) |
Nav & Returns
Year end: December (£m unless shown)
| 2017 | 2018 | 2019 | 2020 | 2021 | |
|---|---|---|---|---|---|
| Net asset value | 55.6 | 75.8 | 91.7 | 110.0 | 129.8 |
| NAV/share (p) | 50.6 | 68.9 | 83.3 | 100.0 | 118.0 |
| Net Tangible Asset Value | 1.5 | 3.3 | 5.0 | 6.0 | 6.4 |
| NTAV/share (p) | 1.4 | 3.0 | 4.6 | 5.4 | 5.8 |
| Average equity | 27.8 | 65.7 | 83.8 | 100.9 | 120.0 |
| Post-tax ROE (%) | 57.8% | 35.2% | 31.2% | 28.2% | 0.0% |
Metrics
Year end: December (£m unless shown)
| 2017 | 2018 | 2019 | 2020 | 2021 | |
|---|---|---|---|---|---|
| Revenue growth | 24.7% | 38.0% | 13.5% | 13.5% | |
| Adj EBITDA growth | 18.4% | 43.7% | 14.8% | 13.4% | |
| Adj EBIT growth | 14.0% | 44.8% | 12.1% | 11.0% | |
| Adj PBT growth | 10.3% | 44.0% | 12.8% | 9.0% | |
| Adj EPS growth | 5.7% | 43.9% | 12.8% | 32.9% | |
| Dividend growth | N/A | 46.7% | 22.7% | 18.5% | |
| Adj EBIT margins | 30.4% | 31.9% | 31.5% | 30.8% |