|
|
1 May 2024 |
Anexo Group plc
('Anexo' or the 'Group')
Final Results
"Solid performance across all divisions with strong outlook for the future"
Anexo Group plc (AIM: ANX), the specialist integrated credit hire and legal services provider, announces its final results for the year ended 31 December 2023 (the 'period' or 'FY2023).
|
Financial Highlights |
2023 |
2022 |
% movement |
|
Total revenues (£'000s)1 |
149,334 |
138,329 |
+8.0% |
|
Operating profit (£'000s)1 |
39,773 |
30,416 |
+30.8% |
|
Adjusted2 operating profit (£'000s)1 |
39,773 |
30,241 |
+31.5% |
|
Adjusted2 operating profit margin (%) |
26.6 |
21.9 |
+21.4% |
|
Profit before tax (£'000s) |
23,040 |
23,918 |
-3.7% |
|
Adjusted2 profit before tax and exceptional items (£'000s) |
23,040 |
24,093 |
-4.4% |
|
Adjusted3 basic EPS (pence) |
12.8 |
16.5 |
-22.4% |
|
Total dividend for the year (pence) |
1.5 |
1.5 |
- |
|
Equity attributable to the owners of the Company (£'000s) |
159,699 |
146,347 |
+9.1% |
|
Net cash from operating activities (£'000s) |
17,391 |
-3,132 |
+20,523 |
|
Net debt balance (£'000s) |
67,942 |
73,124 |
+7.1% |
Note: The basis of preparation of the consolidated financial statements for the current and previous year is set out in the Financial Review below.
1. Including the impact of the agreement in the Emissions Case.
2. Adjusted operating profit and profit before tax: excludes share‑based payment charges in 2022. A reconciliation to reported (IFRS) results is included in the Financial Review below.
3. Adjusted EPS: adjusted PBT less tax at statutory rate divided by the weighted number of shares in issue during the year.
Overview and Financial and Operational KPIs
Following a year of consolidation for the Group's core business in 2022, the early part of 2023 saw the Group continue its focus on the prudent management of fleet levels within its credit hire division, EDGE, whilst looking to grow the level of cash collections within its legal services division, Bond Turner. Cash collections improved throughout the year, deriving from credit hire claims, the agreement in the VW Emissions Case "Emissions Case", housing disrepair claims and the serious injury and clinical and professional negligence "large loss" teams. The Group thereafter continued its investment in Bond Turner and also increase its activity within credit hire.
Bond Turner has continued to invest in good quality staff and related infrastructure and this is reflected in the overall rise in cash collections, which increased from
During 2023, the Group reached agreement with VW in relation to the diesel emissions case and the results for the year include the impact of this agreement, in which the Group acted for around 12,000 claimants. The terms of the agreement are subject to confidentiality restrictions. The Group announced on 5 June 2023 that the agreement had resulted in a net positive cash position to Anexo of
Following this agreement, the Group has continued its investment in claims against other manufacturers including Mercedes Benz, Vauxhall, BMW/ Mini, Peugeot/Citroen and Nissan/Renault. During 2023 the Group invested a total of
Staff numbers within Bond Turner continued to grow, driving improvements in performance and cash collections with an increased focus on both developing our own staff but recruiting where necessary to increase settlement capacity. This growth was particularly notable within the housing disrepair and large loss teams, where staff numbers increased from 54 and 63 respectively at the end of 2022 to 69 and 77 at the end of 2023 (an increase of 27.8% and 22.2% respectively). Staff numbers in the legal services division reached a total of 702 in 2023, a 3.5% rise from 2022. Overall cash collections rose 11.9% to
The Credit Hire Division started 2023 with 1,730 vehicles on the road. This number grew to 1,961 by the end of the first half of the year, with average vehicle numbers over the first half reaching 1,634 as the Group concentrated on the effective management of activity levels. As a result, the Group reported a reduction in net debt in that period. Opportunities for new work continued to be buoyant with the Group accepting an increasing number of claims in the second half of the year, this was particularly evident in the latter months of 2023, traditionally a period of strong seasonality for the Group, where vehicles numbers increased sharply, reaching 2,409 at the end of 2023, with a second half average of 2,144. This had the effect of driving an improvement in profitability for the credit hire division in the second half of the year (profit before tax increased from
Whilst overall Credit Hire revenues for the full year reduced from
The growth in vehicle activity, particularly towards the end of 2023, alongside the significant portfolio of claims within Legal Services, where much of the associated costs have been incurred and expensed, provide a strong platform for 2024 and beyond.
Our ability to fund growth in our hire business has come from improving levels of cash collections, not only from an increase in credit hire claim settlements, which increased by 13.2% in the period reaching 8.967 in 2023 (2022: 7,922), but from an increase in case settlements achieved during the year from the housing disrepair and large loss teams (departments of legal services). In addition, the Group announced on 5 June 2023 that agreement in respect of the VW Emissions Case ('Emissions Case') had resulted in a net positive cash position to Anexo of
The Group has a number of opportunities for growth in 2024, not only from the current divisions but from wider opportunities in the legal services sector including the expansion of EDGE into providing credit hire vehicles to taxi drivers involved in non-fault accidents. The Board believes there are significant opportunities to manage the overall Group to ensure it maximises shareholder value by continuing to seize opportunities for growth as they present themselves without the need for significant increases in debt funding.
|
KPI's |
2023 |
2022 |
% movement |
|
Group |
|
|
|
|
Total revenues (£'000s) |
149,334 |
138,329 |
+8.0% |
|
Gross profit (£'000s) |
118,451 |
105,776 |
+12.0% |
|
Adjusted operating profit ( |
39,773 |
30,241 |
+31.5% |
|
Adjusted operating profit margin (%) |
26.6% |
21.9% |
+21.4% |
|
Cash collections from settled cases (£'000s) |
163,530 |
146,090 |
+11.9% |
|
Credit Hire |
|
|
|
|
Revenues (£'000s) |
60,778 |
74,681 |
-18.6% |
|
Vehicles on hire at the year-end (no) |
2,409 |
1,730 |
+39.2% |
|
Average vehicles on hire for the year (no) |
1,904 |
1,892 |
+0.6% |
|
Number of hire cases settled |
8,967 |
7,922 |
+13.2% |
|
New cases funded (no) |
11,724 |
9,986 |
+17.4% |
|
Legal Services |
|
|
|
|
Revenues (£'000s) 1 |
88,556 |
63,648 |
+39.1% |
|
Legal staff at the period end (no) |
702 |
678 |
+3.5% |
|
Average number of legal staff (no) |
696 |
646 |
+7.7% |
|
Total senior fee earners at period end (no) |
283 |
253 |
+11.9% |
|
Average senior fee earners (no) |
257 |
240 |
+7.1% |
|
1. Revenues include the impact of the agreement of the Emissions Case.
|
|||
Commenting on the Final Results, Alan Sellers, Executive Chairman of Anexo Group plc, said: "I am pleased to report a solid performance across all divisions. As always, we have managed our vehicle numbers effectively and sought to utilise our working capital as efficiently as possible. Cash collections continue to grow as a result of this strategy and we continue to invest in high quality staff.
The housing disrepair and large loss divisions continue to expand and play an increasingly important part in the development of the Group. We look forward to further developments in the ongoing Diesel Emissions class actions and continue to focus on effective cash management to maximise cash generation and create value for all our shareholders."
Investor Briefing
Alan Sellers, Executive Chairman, and Mark Bringloe, CFO, will provide a live presentation relating to the Final Results Presentation via Investor Meet Company at 09:30 BST today.
The presentation is open to all existing and potential shareholders. Questions can be submitted at any time during the live presentation.
Investors can sign up to Investor Meet Company for free and add to meet ANEXO GROUP PLC via:
https://www.investormeetcompany.com/anexo-group-plc/register-investor
Investors who already follow ANEXO GROUP PLC on the Investor Meet Company platform will automatically be invited.
Results presentation is available at the Group's website: https://www.anexo-group.com/
For further enquiries:
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Anexo Group plc |
+44 (0) 151 227 3008 |
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Alan Sellers, Executive Chairman Mark Bringloe, Chief Financial Officer Nick Dashwood Brown, Head of Investor Relations |
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WH Ireland Limited (Nominated Adviser & Joint Broker) |
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Hugh Morgan/ Chris Hardie / Darshan Patel (Corporate) Fraser Marshall / Harry Ansell (Broking) |
+44 (0) 20 7220 1666 |
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Zeus (Joint Broker) David Foreman / Louisa Waddell (Investment Banking) Simon Johnson (Corporate Broking) |
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Notes to Editors:
Anexo is a specialist integrated credit hire and legal services provider. The Group has created a unique business model by combining a direct capture Credit Hire business with a wholly owned Legal Services firm. The integrated business targets the impecunious not at fault motorist, referring to those who do not have the financial means or access to a replacement vehicle.
Through its dedicated Credit Hire sales team and network of 1,100 plus active introducers around the
The Group was admitted to trading on AIM in June 2018 with the ticker ANX. For additional information please visit: www.anexo-group.com
Chairman's Statement
On behalf of the Board, I am pleased to report a year of solid growth by the Group, with each division of the Group performing in line with Board expectations. The results for 2023 include the agreement of the Emissions Case as reported in June 2023. These results reflect our continued focus on increasing cash settlements through the expansion of our Legal Services division, with continued investment and growth not only in credit hire but more significantly in both the housing disrepair and large loss departments.
The Board continues to invest in diversifying the Group's activities by taking advantage of the significant growth opportunities which are presenting themselves and believes that the Group is well positioned for further strong performance in 2024 and beyond.
Group Performance
Anexo Group plc has shown solid performance during 2023 with Group revenues increasing in 2023 by 8.0% to
Whilst revenues for Credit Hire reduced from
During 2023, the Group has focussed on further developing the housing disrepair and large loss teams whilst recognising that credit hire remains the mainstream profit generator for the Group. This focus has contributed to an increased level of case settlements and therefore an increase in cash collections for the Group, which rose by 11.9% to
Credit Hire division
The Group's Credit Hire division, EDGE, saw prudent management of fleet activities during the early part of 2023 to maximise efficient use of the existing fleet and to manage overall fleet numbers to reflect these expectations. In the second half of the year, cash collections were such that the Group could accelerate growth without the need to increase debt facilities and vehicle numbers rose from 1,730 at the start of the year, falling to a low of 1,431 in H1, then rising sharply to end the year at 2,409, an increase of 39.2% from the start of the year. As a result, new cases funded increased from 9,986 in 2022 to 11,724 in 2023, whilst the number of hire cases settled increased by 13.2% from 7,922 in 2022 to 8,967 in 2023, supporting the increase in cash collections noted above.
With the managed start to 2023 in vehicle activity, revenues within the Credit Hire division fell in 2023 by 18.6% to
Legal Services division
The Group's Legal Services division, Bond Turner, has continued its focus on cash collections across each of the three principal departments, with growth in both housing disrepair and large loss contributing to the positive result in the year. Revenues within the Legal Services division, which strongly correlates to cash, increased by 37.4% to
The average number of staff rose from 646 in 2022 (of which 240 were senior fee earners) to 696 in 2023 (including 257 senior fee earners).
Diesel Emissions
During 2023, the Group reached agreement with VW in relation to the diesel emissions case and the results for the year include the impact of this agreement, in which the Group acted for around 12,000 claimants. The terms of the agreement are subject to confidentiality restrictions; the Group announced on 5 June 2023 that the agreement had resulted in a net positive cash position to Anexo of
Following this, the Group has continued its investment in claims against other manufacturers including Mercedes Benz, Vauxhall, BMW/Mini, Peugeot/Citroen and Renault/Nissan. By the end of 2023 the Group had secured claims against Mercedes Benz (where court proceedings have been issued) from approximately 12,000 clients, and a further 22,000 claims against other manufacturers. Settlement of these claims is expected to significantly enhance profitability and cashflows although the timing of any negotiations remains uncertain.
In total the Group invested
Housing Disrepair
The housing disrepair team has continued its rapid expansion during 2023, where revenues increased to
Dividends
The Board is pleased to propose a final dividend of 1.5p per share (
Corporate Governance
Anexo values corporate governance highly and the Board believes that effective corporate governance is integral to the delivery of the Group's corporate strategy, the generation of shareholder value and the safeguarding of our shareholders' long-term interests.
As Chairman, I am responsible for the leadership of the Board and for ensuring its effectiveness in all aspects of its role. The Board is responsible for the Group's strategic development, monitoring and achievement of its business objectives, oversight of risk and maintaining a system of effective corporate governance. I will continue to draw upon my experience to help ensure that the Board delivers maximum shareholder value.
Our employees and stakeholders
The strong performance of the Group reflects the dedication and quality of the Group's employees. We rely on the skills, experience and commitment of our team to drive the business forward. Their enthusiasm, innovation and performance remain key assets of the Group and are vital to its future success. On behalf of the Board, I would like to thank all of our employees, customers, suppliers, business partners and shareholders for their continued support over the last year.
Current Trading and Outlook
As our financial performance and KPI's have demonstrated, the Group has continued to invest in its people, particularly within the Legal Services division, supporting the growth we have reported in both the number of claims settled and the underlying level of cash receipts for the Group. Whilst this investment impacted our reported financial performance in 2023, the continued growth in headcount supporting ever increasing case settlements will continue to contribute to growth in 2024 and beyond.
Since year end trading across both Credit Hire and Legal Services has been in line with management expectations.
Subsequent Events
In the previous emissions action Bond Turner's clients were not part of the Group Litigation Order ('GLO'), which brought together a number of legal firms acting for different claimants. In the current action, Bond Turner will form part of the respective
There was a 5-day case management hearing on 11th March 2024 to consider all the various manufacturer NOx Emissions claims and provide guidance on how the cases should progress. The Court was keen to progress these cases as quickly as possible and has set a rigid timetable to do so. In December 2023 Mercedes was appointed as the 'Lead GLO' case; the Court has further appointed three other cases to be Additional Lead GLO's ('ALGLOs'). These are essentially cases which will progress alongside Mercedes to act as reserve cases, in case Mercedes settles, and to involve additional issues that Mercedes does not but which are relevant to the Group Litigation as a whole. The ALGLOs appointed are Ford, Nissan/Renault and Peugeot/Citroën.
Several trial dates have been set with the first being heard in October 2024 involving several manufacturers (Mercedes, BMW, Renault, and Vauxhall), dealing specifically with the issue of whether decisions by the German regulatory body (responsible for giving the vehicles 'type approval' to be manufactured and sold) are binding in
In October 2025 liability will be determined raising legal and factual issues of whether the vehicles contained prohibited defeat devices. To assist the Court, this will include the selection and testing of sample vehicles across several manufacturers including Mercedes, Ford, Renault/Nissan and Peugeot/Citroën manufacturers.
Finally in October 2026 a trial will address causation and loss issues. This trial will involve all manufacturers.
Post Balance Sheet Events
On 24 April 2024 Mark Bringloe was appointed as permanent Chief Financial Officer.
Annual General Meeting
The Group's Annual General Meeting will be held on 18 June 2024. The notice of the Meeting accompanies this Annual Report and Accounts.
Alan Sellers
Executive Chairman
30 April 2024
Financial Review
Basis of Preparation
To provide comparability across reporting periods, the results within this Financial Review are presented on an "adjusted basis, adjusting for the
A reconciliation between adjusted and reported results is provided at the end of this Financial Review. This Financial Review forms part of the Strategic Report of the Group.
Revenue
In 2023 Anexo successfully increased revenues which increased to
With the active management of claims accepted in the early part of the year, this decline was more than offset within Legal Services, where revenues increased from
During 2023 EDGE, the Credit Hire division, provided vehicles to 11,724 individuals (2022: 9,986) Much of the increase over the figure reported in 2022 arose in H2 2023. Our strategy, as previously reported, remains to concentrate investment within McAMS, the part of the business which supplies motorcycles. To continue to grow case settlements in the post Covid period, where the court system has yet to recover, the Group has been successful in negotiating a number of key protocol arrangements with insurers. These arrangements allow the insurer, the Group and its clients to benefit by agreeing early settlement.
With investment in all areas of Bond Turner continuing into 2023, and the continued maturity of the housing disrepair department, including more recently the large loss department, the Legal Services division reported significant revenue growth of 39.1%, with revenues rising from
The Group has benefitted from continued investment in the housing disrepair team during 2023, and as a result revenue increased from
Gross Profits
Gross profits for the Group are reported at
The Credit Hire Division reported gross profits of
Operating Costs
Administrative expenses increased slightly year-on-year, reaching
Depreciation, amortisation and profit and loss on disposal totalled
Finance Costs
Finance costs reached
Profit Before Tax
Profit before tax reached
Where we have provided adjusted figures, they are after the add-back of the share-based payment credit in 2022; a reconciliation of the adjusted and reported results is included in the Annual Report.
EPS and Dividend
Statutory basic EPS is
The Board is pleased to propose a final dividend of 1.5p per share (
Group Statement of Financial Position
The Group's net assets position is dominated by the balances held within trade and other receivables. These balances include credit hire and credit repair receivables, together with disbursements paid in advance which support the portfolio of ongoing claims. Following continued improvements in the level of cash collected in the year, the gross claim value of trade receivables totalled
In addition, the Group has a total of
The focus on motorcycle claims continued during 2023, and a refresh of certain aging assets resulted in total additions of property, plant, equipment and right of use assets of
Trade and other payables, including tax and social security increased to
Net assets at 31 December 2023 reached
Net Debt, Cash and Financing
Net debt reduced to
The total debt balance fell from
Having considered the Group's current trading performance, cash flows and headroom within our current debt facilities (further details of additional facilities secured post year end are included in the annual report), maturity of those facilities, the Directors have concluded that it is appropriate to prepare the Group and the Company's financial statements on a going concern basis. Further details are included in the annual report.
Cash Flow
Notwithstanding the continued delays in the court system, we have continued to invest in talent and grow our settlement capacity throughout Bond Turner, across each of the Credit Hire, housing disrepair and more recently the large loss teams. As we have previously reported, increasing numbers of senior fee earners drives increased settlement and cash collections into the Group as it is mainly these staff that negotiate and settle claims on behalf of the Group. The number of senior fee earners increased from 253 to 283 during 2023 (an increase of 11.9%) with strategic recruitment of high-quality staff a continued focus. More recently this investment has sought to continue to diversity the activities of the Group and headcount with the housing disrepair team, where the number of staff increased in number from 54 at 31 December 2022 to 69 at 31 December 2023 (an increase of 27.8%); and the large loss team, where the number of staff increased in number from 63 at 31 December 2022 to 77 at 31 December 2023 (an increase of 22.2%).
Notwithstanding the delays faced in the court system, which continues to impact settlements, cash collections for the Group (excluding settlements for our clients and the contribution from the agreement of the Emissions Case), a key metric for the Group, increased from
These improvements resulted in a significant improvement in net cash from operating activities, which was reported as a net cash inflow of
Improved cash collections and operating cash flows have allowed the Group to reduce debt, reporting a net cash outflow of
Reconciliation of Adjusted and Reported IFRS Results
In establishing the adjusted operating profit, the adjusted results for 2022 included a credit of
A reconciliation between adjusted and reported results is provided below:
|
|
Year to December 2023 |
|||
|
Adjusted £'000s |
Share-based payment £'000s |
Reported £'000s |
|
|
|
Revenue |
149,334 |
- |
149,334 |
|
|
Gross profit |
118,451 |
- |
118,451 |
|
|
Other operating costs (net) |
(78,678) |
- |
(78,678) |
|
|
Operating profit |
39,773 |
- |
39,773 |
|
|
Finance costs (net) |
(16,733) |
- |
(16,733) |
|
|
Profit before tax |
23,040 |
- |
23,040 |
|
|
|
Year to December 2022 |
|||
|
Adjusted £'000s |
Share-based payment £'000s |
Reported £'000s |
|
|
|
Revenue |
138,329 |
- |
138,329 |
|
|
Gross profit |
105,776 |
- |
105,776 |
|
|
Other operating costs (net) |
(75,535) |
175 |
(75,360) |
|
|
Operating profit |
30,241 |
175 |
30,416 |
|
|
Finance costs (net) |
(6,323) |
- |
(6,323) |
|
|
Profit before tax |
23,918 |
175 |
24,093 |
|
On behalf of the board
Mark Bringloe
Chief Financial Officer
30 April 2024
Consolidated Statement of Total Comprehensive Income
for year ended 31 December 2023
|
|
|
2023 |
|
2022 |
|
|||
|
|
Note |
£'000s |
|
£'000s |
|
|||
|
|
|
|
|
|
||||
|
Revenue |
|
149,334 |
|
138,329 |
||||
|
Cost of sales |
|
(30,883) |
|
(32,553) |
||||
|
Gross profit |
|
118,451 |
|
105,776 |
||||
|
|
|
|
|
|
||||
|
Depreciation & profit / loss on disposal of property, plant and equipment |
4 |
(9,439) |
|
(10,436) |
||||
|
Amortisation |
4 |
(69) |
|
(117) |
||||
|
Increase in provision for impairment of trade receivables |
4 |
(3,489) |
|
(5,422) |
||||
|
Other administrative expenses before share based payments |
|
(65,681) |
|
(59,560) |
||||
|
Total Administrative expenses before share based payments |
|
(78,678) |
|
(75,535) |
||||
|
Operating profit before share based payments |
4 |
39,773 |
|
30,241 |
||||
|
|
|
|
|
|
||||
|
Share based payment credit |
|
- |
|
175 |
||||
|
Operating profit |
4 |
39,773 |
|
30,416 |
||||
|
|
|
|
|
|
||||
|
Finance costs |
9 |
(16,733) |
|
(6,323) |
||||
|
|
|
|
|
|
||||
|
Profit before tax |
|
23,040 |
|
24,093 |
||||
|
Taxation |
|
(7,919) |
|
(4,616) |
||||
|
Profit and total comprehensive income for the year attributable to the owners of the company |
|
15,121 |
|
19,477 |
||||
|
|
|
|
|
|
||||
|
Earnings per share |
|
|
|
|
||||
|
Basic earnings per share (pence) |
5 |
12.8 |
|
16.6 |
||||
|
|
|
|
|
|
||||
|
Diluted earnings per share (pence) |
5 |
12.8 |
|
16.6 |
||||
|
|
|
|
|
|
||||
The above results were derived from continuing operations.
Consolidated Statement of Financial Position
as at 31 December 2023
|
|
|
2023 |
|
2022 |
||||
|
Assets |
Note |
£'000s |
|
£'000s |
||||
|
Non-current assets |
|
|
|
|
||||
|
Property, plant and equipment |
6 |
1,813 |
|
2,072 |
||||
|
Right of use assets |
6 |
13,886 |
|
12,657 |
||||
|
Intangible assets |
7 |
34 |
|
71 |
||||
|
Deferred tax assets |
|
112 |
|
112 |
||||
|
|
|
15,845 |
|
14,912 |
||||
|
Current assets |
|
|
|
|
||||
|
Trade and other receivables |
8 |
234,409 |
|
222,272 |
||||
|
Corporation tax receivable |
|
- |
|
606 |
||||
|
Cash and cash equivalents |
|
8,443 |
|
9,049 |
||||
|
|
|
242,852 |
|
231,927 |
||||
|
|
|
|
|
|
||||
|
Total assets |
|
258,697 |
|
246,839 |
||||
|
|
|
|
|
|
||||
|
Equity and liabilities |
|
|
|
|
||||
|
Equity |
|
|
|
|
||||
|
Share capital |
|
59 |
|
59 |
||||
|
Share premium |
|
16,161 |
|
16,161 |
||||
|
Share based payments reserve |
|
- |
|
- |
||||
|
Retained earnings |
|
143,479 |
|
130,127 |
||||
|
Equity attributable to the owners of the Company |
|
159,699 |
|
146,347 |
||||
|
|
|
|
|
|
||||
|
Non-current liabilities |
|
|
|
|
||||
|
Other interest-bearing loans and borrowings |
9 |
15,000 |
|
25,000 |
||||
|
Lease liabilities |
9 |
7,968 |
|
7,176 |
||||
|
Deferred tax liabilities |
|
32 |
|
32 |
||||
|
|
|
23,000 |
|
32,208 |
||||
|
|
|
|
|
|
||||
|
Current liabilities |
|
|
|
|
||||
|
Other interest-bearing loans and borrowings |
9 |
47,070 |
|
43,594 |
||||
|
Lease liabilities |
9 |
6,347 |
|
6,403 |
||||
|
Trade and other payables |
|
14,811 |
|
13,225 |
||||
|
Corporation tax liability |
|
7,770 |
|
5,062 |
||||
|
|
|
75,998 |
|
68,284 |
||||
|
|
|
|
|
|
||||
|
Total liabilities |
|
98,998 |
|
100,492 |
||||
|
|
|
|
|
|
||||
|
Total equity and liabilities |
|
258,697 |
|
246,839 |
||||
|
|
|
|
|
|
|
|||
The notes on pages 76 to 109 form an integral part of these consolidated financial statements.
The financial statements were approved by the Board of Directors and authorised for issue on 30 April 2024. They were signed on its behalf by:
Mark Bringloe
Chief Financial Officer
30 April 2024
Consolidated Statement of Changes in Equity
for the year ended 31 December 2023
|
|
Share Capital |
Share Premium |
Share Based Payments Reserve |
Retained Earnings |
Total |
|
|||||||||||||||
|
|
£'000s |
£'000s |
£'000s |
£'000s |
£'000s |
|
|||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
|
At 1 January 2022 |
58 |
16,161 |
2,077 |
109,928 |
128,224 |
|
|||||||||||||||
|
Profit for the year and total comprehensive income |
- |
- |
- |
19,477 |
19,477 |
|
|||||||||||||||
|
Issue of share capital |
1 |
- |
- |
- |
1 |
|
|||||||||||||||
|
Share based payment credit |
- |
- |
(175) |
- |
(175) |
|
|||||||||||||||
|
Transfer of share-based payment reserve |
- |
- |
(1,902) |
1,902 |
- |
|
|||||||||||||||
|
Dividends |
- |
- |
- |
(1,180) |
(1,180) |
|
|||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
|
At 31 December 2022 |
59 |
16,161 |
- |
130,127 |
146,347 |
|
|||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
|
Profit for the year and total comprehensive income |
- |
- |
- |
15,121 |
15,121 |
|
|||||||||||||||
|
Dividends |
- |
- |
- |
(1,769) |
(1,769) |
|
|||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
|
At 31 December 2023 |
59 |
16,161 |
- |
143,479 |
159,699 |
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||
Consolidated Statement of Cash Flows
for the year ended 31 December 2023
|
|
|
2023 |
|
2022 |
|
|||||||
|
|
Note |
£'000s |
|
£'000s |
|
|||||||
|
Cash flows from operating activities |
|
|
|
|
|
|||||||
|
Profit for the year |
|
15,121 |
|
19,477 |
|
|||||||
|
Adjustments for: |
|
|
|
|
|
|||||||
|
Depreciation and profit / loss on disposal |
4 |
9,439 |
|
10,436 |
|
|||||||
|
Amortisation |
4 |
69 |
|
117 |
|
|||||||
|
Financial expense |
4 |
16,733 |
|
6,323 |
|
|||||||
|
Share based payment credit |
4 |
- |
|
(175) |
|
|||||||
|
Taxation |
|
7,919 |
|
4,616 |
|
|||||||
|
|
|
49,281 |
|
40,794 |
|
|||||||
|
Working capital adjustments |
|
|
|
|
|
|||||||
|
Increase in trade and other receivables |
|
(12,138) |
|
(34,138) |
|
|||||||
|
Increase in trade and other payables |
|
1,586 |
|
590 |
|
|||||||
|
Cash generated from / (used in) operations |
|
38,729 |
|
7,246 |
|
|||||||
|
|
|
|
|
|
|
|||||||
|
Interest paid |
|
(16,733) |
|
(5,722) |
|
|||||||
|
Tax paid |
|
(4,605) |
|
(4,656) |
|
|||||||
|
Net cash from / (used) in operating activities |
|
17,391 |
|
(3,132) |
|
|||||||
|
|
|
|
|
|
|
|||||||
|
Cash flows from investing activities |
|
|
|
|
|
|||||||
|
Proceeds from sale of property, plant and equipment |
|
757 |
|
1,579 |
|
|||||||
|
Acquisition of property, plant and equipment |
|
(1,277) |
|
(1,186) |
|
|||||||
|
Investment in intangible fixed assets |
|
(32) |
|
- |
|
|||||||
|
|
|
|
|
|
|
|||||||
|
Net cash (used in) / from investing activities |
|
(552) |
|
393 |
|
|||||||
|
|
|
|
|
|
|
|||||||
|
Cash flows from financing activities |
|
|
|
|
|
|||||||
|
Proceeds from new loans |
|
20,409 |
|
24,430 |
|
|||||||
|
Repayment of borrowings |
|
(26,932) |
|
(8,749) |
|
|||||||
|
Lease payments |
|
(9,153) |
|
(10,275) |
|
|||||||
|
Dividends paid |
|
(1,769) |
|
(1,180) |
|
|||||||
|
Net cash (used in) / generated from financing activities |
|
(17,445) |
|
4,226 |
|
|||||||
|
|
|
|
|
|
|
|||||||
|
Net (decrease) / increase in cash and cash equivalents |
|
(606) |
|
1,487 |
|
|||||||
|
Cash and cash equivalents at 1 January |
|
9,049 |
|
7,562 |
|
|||||||
|
|
|
|
|
|
|
|||||||
|
Cash and cash equivalents at 31 December |
|
8,443 |
|
9,049 |
|
|||||||
Notes to the Financial Information
for the year ended 31 December 2023
1. Basis of Preparation and Principal Activities
The financial information set out herein does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006.
The financial information for the year ended 31 December 2023 has been extracted from the Company's audited financial statements which were approved by the Board of Directors on 30 April 2024 and which, if adopted, will be delivered to the Registrar of Companies for
Statutory accounts for the years ended 31 December 2023 and 31 December 2022 have been reported on by the auditor. Their reports for both years (i) were unqualified; (ii) did not include a reference to any matters which the auditor drew attention by way of emphasis without qualifying their audit report and (iii) did not contain a statement under section 498(2) or 498 (3) of the Companies Act 2006.
The information in this preliminary statement has been extracted from the audited financial statements for the year ended 31 December 2023 and as such does not contain all the information required to be disclosed in the financial statements prepared in accordance with
The Company is a public limited company incorporated and domiciled in
The address of its registered office is 5th Floor, The Plaza, 100 Old Hall Street,
Going concern
With activity levels being maintained in line with forecast in the early part of FY24 and focus upon growth in revenue and performance without the need for additional debt funding the Group is currently performing in line with management expectations. Where funding allows, the Group continues to invest across all business streams, albeit additional focus is currently on expanding the number of diesel emissions claims reflecting limitation in mid 2024, the Group forecasting a spend in that year of
The Group has secured funding from a number of funders, the most significant being Secure Trust Bank plc, HSBC Bank Plc and Blazehill Capital Finance Limited. Following receipt of additional funding of
With the significant level of opportunities open to the Group and to improve overall headroom into 2024 and beyond, the Group is considering a number of options for additional funding, and will report in due course as matters progress.
Each of the Group's banking arrangements are subject to monitoring through financial performance measures or covenants. Other than during the first few months of 2023, where one specific measure, surrounding the average hire period which increased above the measure included within the Secure Trust facility, all other performance measures and covenants have been met including in the period to date in 2024. The variance arose in that the average hire period extended beyond that incorporated within the Secure Trust facility and whilst extended hire periods are positive for the Group's financial performance, formal waiver was received from Secure Trust and the measure varied accordingly. The performance measures incorporated within the Secure Trust facility are there for monitoring purposes and aid as a guide for the Group to engage on a regular basis around general financial performance and headroom, both from a cash and operational perspective. All covenants were met during 2023 and to date in 2024 within both the Blazehill Capital and HSBC facilities. Further details are included in note 20.
The continued management of claims activity against claim settlements, alongside the additional headroom created from the recent refinancings set out above, means that the Board remains confident that the Group is in a strong financial position and is well placed to trade into 2024.
The Directors have prepared trading and cash flow forecasts for the period ended December 2026, against which the impact of various sensitivities have been considered covering the level of cash receipts (we have sensitised cash collections by 5% and 10% with and without management intervention which included a reduction in the volume of work taken on). We note earlier that there is no certainty that a settlement in favour of Bond Turner's clients will be reached in any of the emissions class actions currently ongoing, nor is there any guarantee that such a settlement would include financial compensation. The timeline for progress towards conclusion of the litigation is also unclear and no assumptions as to revenue have been included in the Board's internal forecasts for 2024 or 2025.
Working capital management is considered to be the most critical aspect of the Group's assessment. The Group has the ability to improve cash flow and headroom from a number of factors that are within the direct control of management, examples of which could be by limiting the level of new business within EDGE, managing the level of investment in people and property within Bond Turner or by limiting the investment in the portfolio of emissions claims currently ongoing. These factors allow management to balance any potential shortfall in cash receipts and headroom against forecast levels, something the Directors have been doing for many years, such that the Group maintains adequate headroom within its facilities. It is in that context that the Directors have a reasonable expectation that the Group will have adequate cash headroom.
The Group continues to trade profitably and early indications for growth in the current year are positive. Accordingly, the directors continue to adopt the going concern basis in preparing the consolidated and the company financial statements.
2. Critical Accounting Judgements and Key Sources of Estimation Uncertainty
In the application of the Group's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of revision and prior periods if the revision affects both current and prior periods.
The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.
Credit Hire
Due to the nature of the business, there are high levels of trade receivables and accrued income at the year end, and therefore a risk that some of these balances may be impaired or irrecoverable. The Group applies its policy for accounting for impairment of these trade receivables and accrued income as well as expected credit losses whereby debts are assessed and provided against when the recoverability of these balances is considered to be uncertain and hence the balances reported at the year-end are at risk of change. This requires the use of estimates based on historical claim and collection information.
Revenue is accrued on a daily basis, after adjustment on a portfolio basis for an estimation of the recovery of credit hire charges based on historical settlement rates. While historical settlement rates form the basis, these are then considered in light of expected settlement activity. This policy also assumes that claims which have settled historically are representative of the trade receivables and accrued income in the balance sheet. This assumption represents a significant judgement. The overall settlement adjustment is made to ensure that revenue is only recognised to the extent that it is highly probable that a significant reversal of revenue will not occur upon settlement of a customer's claim. Revenue recognised is updated on settlement once the amount of the claim recovered is known.
Due the factors described above, determining the settlement adjustment to revenue, accrued income and trade receivables involves a high degree of estimation uncertainty which could result in a range of values of adjustment which vary by multiples of materiality. The settlement percentages are sensitive to these estimates. If the settlement percentages applied in calculating revenue were reduced by 1% it would reduce credit hire revenue and trade receivables and accrued income (
Legal Services
The Group carries an element of accrued income for legal costs, the valuation of which reflects the estimated level of recovery on successful settlement by reference to the lowest level of fees payable by reference to the stage of completion of those credit hire cases. Where we have not had an admission of liability no value is attributed to those case files.
Accrued income is also recognised in respect of serious injury and housing disrepair claims, only where we have an admission of liability and by reference to the work undertaken in pursuing a settlement for our clients, taking into account the risk associated with the individual claim and expected future value of fees from those claims on a claim-by-claim basis.
For both credit hire and legal services, the historical settlement rates used in determining the carrying value may differ from the rates at which claims ultimately settle. This represents an area of key estimation uncertainty for the Group.
3. Segmental Reporting
The Group's reportable segments are as follows:
· the provision of credit hire vehicles to individuals who have had a non-fault accident, and
· associated legal services in the support of the individual provided with a vehicle by the Group and other legal service activities, which includes the large loss department and any balance or trading associated with emissions.
Management monitors the operating results of business segments separately for the purpose of making decisions about resources to be allocated and of assessing performance.
Year ended 31 December 2023
|
|
Credit Hire |
Other Legal Services * |
Housing Disrepair * |
Group & Central Costs |
Consolidated |
|
|||||||||||||
|
|
£'000s |
£'000s |
£'000s |
£'000s |
£'000s |
|
|||||||||||||
|
Revenues |
|
|
|
|
|
|
|||||||||||||
|
Third party |
60,778 |
75,875 |
12,681 |
- |
149,334 |
|
|||||||||||||
|
Total revenues |
60,778 |
75,875 |
12,681 |
- |
149,334 |
|
|||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
|
Profit before taxation |
6,580 |
13,048 |
6,416 |
(3,004) |
23,040 |
|
|||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
|
Net cash (used in) / generated from operations |
11,434 |
5,642 |
3,067 |
(2,752) |
17,391 |
|
|||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
|
Depreciation, amortisation and gain on disposal of property, plant and equipment |
8,076 |
1,432 |
- |
- |
9,508 |
|
|||||||||||||
|
|
|
|
|
|
|
||||||||||||||
|
Non current assets |
10,595 |
5,250 |
- |
- |
15,845 |
|
|||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
|
Segment assets |
177,346 |
68,131 |
12,454 |
766 |
258,697 |
|
|||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
|
Capital expenditure |
872 |
405 |
- |
- |
1,277 |
|
|||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
|
Segment liabilities |
58,223 |
38,261 |
- |
2,514 |
98,998 |
|
|||||||||||||
Year ended 31 December 2022
|
|
Credit Hire |
Other Legal Services * |
Housing Disrepair * |
Group & Central Costs |
Consolidated |
|
||||||||||||||
|
|
£'000s |
£'000s |
£'000s |
£'000s |
£'000s |
|
||||||||||||||
|
Revenues |
|
|
|
|
|
|
||||||||||||||
|
Third party |
74,681 |
54,311 |
9,337 |
- |
138,329 |
|
||||||||||||||
|
Total revenues |
74,681 |
54,311 |
9,337 |
- |
138,329 |
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||
|
Profit before taxation |
8,887 |
13,220 |
4,694 |
(2,708) |
24,093 |
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||
|
Net cash from operations |
(2,310) |
1,210 |
258 |
(2,290) |
(3,132) |
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||
|
Depreciation, amortisation and gain on disposal of property, plant and equipment |
9,271 |
1,282 |
- |
- |
10,553 |
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||
|
Non current assets |
9,896 |
5,016 |
- |
- |
14,912 |
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||
|
Segment assets |
174,503 |
58,562 |
8,084 |
5,690 |
246,839 |
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||
|
Capital expenditure |
980 |
206 |
- |
- |
1,186 |
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||
|
Segment liabilities |
66,507 |
33,985 |
- |
- |
100,492 |
|
||||||||||||||
* Other Legal Services, housing disrepair and large loss, are subsets of Legal Services. We have however, distinguished the performance of housing disrepair from within Legal Services as this department of the Legal Services segment is an area where the Group is investing heavily, is a focus for the Group at present and into the future and allows readers of the financial statements to understand the contribution housing disrepair has to the overall Group performance. The housing disrepair division continues to grow and as the results become more significant to the overall Group performance this division may well become a reportable segment, in accordance with IFRS 8, in its own right, this could be reported in the 2024 financial statements.
4. Operating Profit
Operating profit is arrived at after / (crediting):
|
|
|
2023 |
|
2022 |
|
|||
|
|
|
£'000s |
|
£'000s |
|
|||
|
|
|
|
|
|
|
|||
|
Depreciation on owned assets |
|
810 |
|
750 |
|
|||
|
Depreciation on right of use assets |
|
7,915 |
|
9,981 |
|
|||
|
Amortisation |
|
69 |
|
117 |
|
|||
|
Increase in provision for impairment of trade receivables |
|
3,489 |
|
5,422 |
||||
|
Share based payment credit |
|
- |
|
(175) |
|
|||
|
Loss / (gain) on disposal of property, plant and equipment |
|
714 |
|
(295) |
|
|||
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
||||
There were no non-recurring costs in the year ended 31 December 2023 or 2022.
Included in the above are the costs associated with the following services provided by the Company's auditor:
|
|
|
2023 |
|
2022 |
|
|
|
£'000s |
|
£'000s |
|
Audit services |
|
|
|
|
|
Audit of the Company and the consolidated financial statements |
|
90 |
|
70 |
|
Audit of the Company's subsidiaries |
|
220 |
|
170 |
|
|
|
|
|
|
|
Total audit fees |
|
310 |
|
240 |
|
All other services |
|
- |
|
- |
|
|
|
|
|
|
|
Total fees payable to the Company's auditor |
|
310 |
|
240 |
5. Earnings Per Share
|
|
||||||
|
|
|
|
2023 |
|
2022 |
|
|
|
Number of shares: |
|
No. |
|
No. |
|
|
|
|
|
|
|
|
|
|
|
Weighted number of ordinary shares outstanding |
|
117,990,294 |
|
117,492,721 |
|
|
|
Effect of dilutive options |
|
- |
|
- |
|
|
|
Weighted number of ordinary shares outstanding - diluted |
|
117,990,294 |
|
117,492,721 |
|
|
|
|
|
|
|
|
|
|
|
Earnings: |
|
£'000s |
|
£'000s |
|
|
|
|
|
|
|
|
|
|
|
Profit basic and diluted |
|
15,121 |
|
19,477 |
|
|
|
Profit adjusted and diluted |
|
15,121 |
|
19,302 |
|
|
|
|
|
|
|
|
|
|
|
Earnings per share: |
|
Pence |
|
Pence |
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
|
12.8 |
|
16.6 |
|
|
|
Adjusted earnings per share |
|
12.8 |
|
16.5 |
|
|
|
Diluted earnings per share |
|
12.8 |
|
16.6 |
|
|
|
Adjusted diluted earnings per share |
|
12.8 |
|
16.5 |
|
|
|
|
|
|
|
|
|
The adjusted profit after tax for 2023 and adjusted earnings per share are shown before share‑based payment credit of £Nil million (2022: Credit of
6. Property, Plant and Equipment
|
|
|
|
Fixtures, |
|
|
|
|
Right of |
Property |
fittings & |
Office |
|
|
|
use assets |
improvements |
Equipment |
equipment |
Total |
|
|
£'000s |
£'000s |
£'000s |
£'000s |
£'000s |
|
Cost |
|
|
|
|
|
|
At 1 January 2022 |
29,644 |
494 |
3,125 |
629 |
33,892 |
|
Additions |
7,026 |
143 |
319 |
289 |
7,777 |
|
Disposals |
(8,684) |
- |
- |
- |
(8,684) |
|
At 31 December 2022 |
27,986 |
637 |
3,444 |
918 |
32,985 |
|
Additions |
10,920 |
- |
401 |
273 |
11,594 |
|
Disposals |
(12,148) |
(409) |
(160) |
(408) |
(13,125) |
|
At 31 December 2023 |
26,758 |
228 |
3,685 |
783 |
31,454 |
|
|
|
|
|
|
|
|
Depreciation |
|
|
|
|
|
|
At 1 January 2022 |
12,748 |
322 |
1,418 |
437 |
14,925 |
|
Charge for year |
9,981 |
35 |
596 |
119 |
10,731 |
|
Eliminated on disposal |
(7,400) |
- |
- |
- |
(7,400) |
|
At 31 December 2022 |
15,329 |
357 |
2,014 |
556 |
18,256 |
|
Charge for the year |
7,915 |
36 |
634 |
140 |
8,725 |
|
Eliminated on disposal |
(10,372) |
(333) |
(121) |
(400) |
(11,226) |
|
At 31 December 2023 |
12,872 |
60 |
2,527 |
296 |
15,755 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying amount |
|
|
|
|
|
|
At 31 December 2023 |
13,886 |
168 |
1,158 |
487 |
15,699 |
|
|
|
|
|
|
|
|
At 31 December 2022 |
12,657 |
280 |
1,430 |
362 |
14,729 |
|
|
|
|
|
|
|
Motor Vehicles are all financed and as such are included in the right of use assets column above.
Property, plant and equipment includes right-of-use assets with carrying amounts as follows:
|
|
Land and Buildings |
Motor Vehicles |
Total |
|
|
|
|
|
|
Right-of-use assets |
|
|
|
|
|
|
|
|
|
At 1 January 2022 |
4,150 |
12,746 |
16,896 |
|
Depreciation charge for the year |
(820) |
(9,161) |
(9,981) |
|
Additions to right-of use assets |
- |
7,026 |
7,026 |
|
Disposals of right-of-use assets |
- |
(1,284) |
(1,284) |
|
At 31 December 2022 |
3,330 |
9,327 |
12,657 |
|
Depreciation charge for the year |
(1,095) |
(6,820) |
(7,915) |
|
Additions to right-of-use assets |
- |
10,920 |
10,920 |
|
Disposals of right-of-use assets |
- |
(1,776) |
(1,776) |
|
At 31 December 2023 |
2,235 |
11,651 |
13,886 |
Intangibles
Intangible Assets
|
|
|
|
|
Software licences |
|
|
|
|
|
£'000s |
|
Cost |
|
|
|
|
|
At 1 January 2022 |
|
|
|
452 |
|
Additions |
|
|
|
- |
|
At 31 December 2022 |
|
|
|
452 |
|
Additions |
|
|
|
32 |
|
At 31 December 2023 |
|
|
|
484 |
|
|
|
|
|
|
|
Amortisation |
|
|
|
|
|
At 1 January 2022 |
|
|
|
264 |
|
Charge for year |
|
|
|
117 |
|
At 31 December 2022 |
|
|
|
381 |
|
Charge for the year |
|
|
|
69 |
|
At 31 December 2023 |
|
|
|
450 |
|
|
|
|
|
|
|
Carrying amount |
|
|
|
|
|
At 31 December 2023 |
|
|
|
34 |
|
|
|
|
|
|
|
At 31 December 2022 |
|
|
|
71 |
|
Software licence assets relate to investments made in third-party software packages, and directly attributable external personnel costs in implementing those platforms.
The amortisation charge is recognised in administration costs in the income statement.
|
||||
7. Trade and Other Receivables
|
|
|
2023 |
|
2022 |
|
|
|
£'000s |
|
£'000s |
|
|
|
|
|
|
|
Gross claim value (invoiced) |
|
386,286 |
|
393,560 |
|
Settlement adjustment on initial recognition |
|
(205,937) |
|
(203,518) |
|
Trade receivables before impairment provision and expected credit loss |
|
180,349 |
|
190,042 |
|
Provision for impairment of trade receivables |
|
(20,812) |
|
(24,674) |
|
Net trade receivables |
|
159,537 |
|
165,368 |
|
Accrued income |
|
70,091 |
|
54,778 |
|
Prepayments |
|
1,407 |
|
1,603 |
|
Tax and social security |
|
449 |
|
- |
|
Other receivables |
|
2,925 |
|
523 |
|
|
|
234,409 |
|
222,272 |
The Group's exposure to credit and market risks, including impairments and allowances for credit losses, relating to trade and other receivables is disclosed in the financial risk management and impairment of financial assets note 27. When measuring revenue, an adjustment is made to the gross value of a claim to reflect the expected settlement which is supported by historical and relevant forward-looking data. Whilst credit risk is considered to be low, the market risks inherent in the business pertaining to the nature of legal and court cases and ageing thereof is a significant factor in the valuation of trade receivables. Accrued income, which is stated net of allowances for credit loss, includes the value of hires that have not yet been invoiced, legal fees in respect of hires that have not yet reached a conclusion and fees in respect of other client cases where liability has been admitted and collection of revenue is considered probable. The increase in the year reflects the increase in claim volumes accepted in respect of credit hire, housing disrepair and large loss.
Average gross debtor days calculated on a count back basis were 475 at 31 December 2023 and 464 at 31 December 2022.
|
Age of net trade receivables |
|
|
|
|||
|
|
|
2023 |
|
2022 |
||
|
|
|
£'000s |
|
£'000s |
||
|
|
|
|
|
|
||
|
Within 1 year |
|
84,652 |
|
92,497 |
||
|
1 to 2 years |
|
42,406 |
|
39,606 |
||
|
2 to 3 years |
|
19,258 |
|
18,259 |
||
|
3 to 4 years |
|
9,976 |
|
12,251 |
||
|
Over 4 years |
|
3,245 |
|
2,755 |
||
|
|
|
|
|
|
||
|
|
|
159,537 |
|
165,368 |
||
|
|
|
|
|
|
||
|
Average age (days) |
|
475 |
|
464 |
||
|
|
|
|
|
|
||
The provision for impairment of trade receivables is the difference between the carrying value and the present value of the expected proceeds taking into account the credit risk associated with non-collection. The Directors consider that the fair value of trade and other receivables is not materially different from the carrying value.
Movement in provision for impairment of trade receivables
|
|
|
2023 |
|
2022 |
|
|
|
£'000s |
|
£'000s |
|
|
|
|
|
|
|
Opening balance |
|
24,674 |
|
27,360 |
|
Increase in provision |
|
3,489 |
|
5,422 |
|
Utilised in the year |
|
(7,351) |
|
(8,108) |
|
Closing Balance |
|
20,812 |
|
24,674 |
8. Borrowings
|
|
|
2023 |
|
2022 |
||||
|
|
|
£'000s |
|
£'000s |
||||
|
Non-current loans and borrowings |
|
|
|
|
||||
|
Lease liabilities |
|
7,968 |
|
7,176 |
||||
|
Revolving credit facility |
|
- |
|
10,000 |
||||
|
Other borrowings |
|
15,000 |
|
15,000 |
||||
|
|
|
|
|
|
||||
|
|
|
22,968 |
|
32,176 |
||||
|
Current loans and borrowings |
|
|
|
|
||||
|
Lease liabilities |
|
6,347 |
|
6,403 |
||||
|
Invoice discounting facility |
|
27,858 |
|
30,562 |
||||
|
Revolving credit facility |
|
10,000 |
|
- |
||||
|
Other borrowings |
|
9,212 |
|
13,032 |
||||
|
|
|
|
|
|
||||
|
|
|
53,417 |
|
49,997 |
||||
|
|
|
|
|
|
|
|||
|
Total borrowings |
|
76,385 |
|
82,173 |
|
|||
|
|
|
|
|
|
||||
Direct Accident Management Limited uses an invoice discounting facility which is secured on the trade receivables of that company. Security held in relation to the facility includes a debenture over all assets of Direct Accident Management Limited dated 11 October 2016, extended to cover the assets of Anexo Group Plc and Edge Vehicles Rentals Group Limited from 20 June 2018 and 28 June 2018 respectively, as well as a cross corporate guarantee with Professional and Legal Services Limited dated 21 February 2018. At the end of December 2023, Direct Accident Management Limited has availability within the invoice discounting facility of
In July 2020 Direct Accident Management Limited secured a
Direct Accident Management Limited is also party to a number of leases which are secured over the respective assets funded.
The revolving credit facility is secured by way of a fixed charge dated 26 September 2019, over all present and future property, assets and rights (including uncalled capital) of Bond Turner Limited, with a cross company guarantee provided by Anexo Group Plc. The loan is structured as a revolving credit facility which is committed for a three-year period, until 13 October 2024, with no associated repayments due before that date. Interest is charged at 3.25% over the Respective Rate. The facility was fully drawn down as at 31 December 2023 and 2022.
In July 2020 Anexo Group Plc secured a loan of
In November 2021 a further
In March 2022 the group secured a loan of
In October 2022, the Group secured a loan of
In June 2023 a loan of
In August 2023, the Group secured a loan of
The loans and borrowings are classified as financial instruments and are disclosed in the financial instruments note.
The Group's exposure to market and liquidity risk; including maturity analysis, in respect of loans and borrowings is disclosed in the financial risk management and impairment of financial assets note.
The Group's banking arrangements provided by Secure Trust Bank Plc, HSBC Bank Plc and Blazehill Capital Limited are subject to monitoring through financial performance measures or covenants.
The Secure Trust facility include the following covenants, all of which are tested monthly:
· A number of individual measures focussed on the relationship between cash collections and funding levels
· Settlement rates
· Hire periods
· Disbursement spending
· Vehicle numbers and utilisation
The Blazehill facility includes the following covenants, all of which are tested monthly:
· Group EBITDA to be not less than 80% of forecast
· Cash collections to be not less than 80% of forecast
· Investment in group capex to not exceed 120% of forecast (testing over a rolling twelve months)
· Minimum group liquidity to exceed
The HSBC facility includes the following covenants, which are tested quarterly for a rolling 12-month period on the results for Bond Turner Limited:
· Interest cover (the relationship between EBITDA and finance charges) to exceed 4 times
· Leverage (being the relationship between EBITDA and net debt) to exceed 2 times
In the early part of the year, one particular measures and covenant within the Secure Trust facility surrounding the average hire period, was breached, the average period extended beyond the measure, a positive for the Group. Formal waiver was received and the measure increased from that date. A facility from Secure Trust of
Changes in liabilities arising from financing activities
|
|
Invoice discounting facility £'000s |
Lease liabilities £'000s |
Other borrowings £'000s |
Total borrowings £'000s |
|
Balance at 1 January 2022 |
29,258 |
17,263 |
23,055 |
69,576 |
|
Cash flows |
|
|
|
|
|
Proceeds from new loans |
1,304 |
- |
23,126 |
24,430 |
|
Repayment of borrowings |
- |
- |
(8,749) |
(8,749) |
|
Capital element of lease payments |
- |
(10,275) |
- |
(10,275) |
|
Non-cash changes * |
- |
6,591 |
600 |
7,191 |
|
Balance at 31 December 2022 |
30,562 |
13,579 |
38,032 |
82,173 |
|
Cash flows Proceeds from new loans |
- |
- |
20,409 |
20,409 |
|
Repayment of borrowings |
(2,704) |
- |
(24,228) |
(26,932) |
|
Capital element of lease payments |
- |
(9,153) |
- |
(9,153) |
|
Non-cash changes * |
- |
9,888 |
|
9,888 |
|
Balance at 31 December 2023 |
27,858 |
14,314 |
34,213 |
76,385 |
* This balance includes
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