- Backlog of 20,000 claims underpins profit recovery.
- £6.5m investment in additional fee earners, IT and VW cases in 2020 supports profit recovery.
Liverpool-based Anexo (ANX:135p), a provider of a litigation claims processing focused on the recovery of credit hire and repair costs for impecunious non-fault motorists involved in road traffic accidents, is primed to deliver a 30 per cent profit recovery this year.
As expected 2020 pre-tax profits dipped from £23m to £16.1m, in line with forecasts when I included the shares in my 2021 Bargain Shares Portfolio. Finance director Mark Bringloe points out that court claims were running at 60 per cent of their normal level last year which impacted the ability of Anexo’s staff to agree settlements with counterparties. Anexo pays costs for garages, vehicle leases and insurance upfront and only recoups its outlay on settlement. A backlog of 20,000 claims augurs well for both profits and cash collection rates as lockdown restrictions ease.