Newly listed credit hire and legal services business Anexo has announced strong half year results, saying the looming PI reforms are only good news for its model. Adjusted pre-tax profits for the six months ending 30 June rose 63% to £11m compared with the same period last year, on turnover up 56% to £36.7m.
The company reported a maiden interim dividend of 1p per share and said it was on track to make profits of £23m in 2019.
Anexo Group, a 20-year-old business founded by barrister Alan Sellers, floated on the London Alternative Investment Market last year. Since then its legal services business Bond Turner has opened a new office in Bolton and increased the number of staff employed by 60% to 344. Of those, 109 are senior fee earners.
Sellers said that the figures demonstrated the soundness of its model of handling all stages of RTA claims. 'Only a very very small part of our remit relates to PI claims,' he said. Today's results show credit hire accounting for the bulk of the company's profits: £8.3m on revenues of £23.2m. While revenues from the legal services division rose 26% to £13.5m, pre-tax profits from the division declined by 39% to £2.3m, reflecting the investment in the Bolton office.
Anexo's strategy is well placed to survive the PI reforms being implemented under the Civil Liability Act, Sellers said.’The demise of the high street whiplash lawyer is good for us,’ he said. 'The reforms will create more opportunities for ourselves.'
The company said it is well positioned to grow its market share and take advantage of opportunities including possible acquisitions 'if the right legal services business becomes available', Sellers said.
Shares in Anexo Group plc slipped 2.5% to 189p this morning.