- First-half revenue up 13 per cent to £77.8mn
- Pre-tax profit up 12 per cent to £15.2mn
- Net debt cut 16 per cent to £61.2mn
- Cash collections from settled cases up 14 per cent to £77.4mn
- Analysts have materially upgraded earnings forecasts
- Former finance director returns
Anexo (ANX:66.5p), a credit and legal services provider for motorists, is making strong progress in improving working capital management and cash collection rates to reduce debt on its balance sheet.
Since the start of 2023, net borrowings have been cut by £11.9mn to £61.2mn, buoyed by £15.7mn of net cash flow from operating activities. The number of credit hire cases settled increased by more than 800 to 4,369, although there was a small reduction in the number of new credit hire cases being funded. The average number of vehicles on the road fell 20 per cent as management focused on optimising cash returns to reduce the level of borrowings rather than chasing volumes. That’s because it takes time to collect the debtor book, so debt increases if Anexo chases the market opportunity.