Published on: May 10, 2021

Solid performance breeds confidence

Anexo’s recent FY 2020 results reflected a year in which the Group demonstrated its resilience in an operating environment which was influenced by COVID-19 and the associated lockdowns and restrictions. Revenues and Adjusted EBITDA are in line with our expectations. The Group has proposed a final dividend of 1p, to make 1.5p for the full year. Given the improving vehicle numbers and cash collections in FY 2020 and the Group’s investment in capacity, the outlook comment is understandably confident as the opportunities for growth continue to emerge. We expect to see the Group remain flexible in its approach to balancing investment in those growth opportunities with its focus on cash collections. Meanwhile, the VW case remains a potential significant positive impact on revenue and profits, although we only reflect the costs in our estimates at present. In addition, there are other emissions cases for which we have estimated investment spend of £5m in our new FY 2022E estimates. Overall, we believe that Anexo remains well set for further growth in FY 2021E.