Published on: August 13, 2020
Strong recovery in prospect
Anexo’s interim results show a solid performance in a period affected by COVID-19, in our view. While revenue was flat versus H1 19, the Group continued to invest in future revenue opportunities and cash collection capacity. Adjusted operating profit consequently reduced by 33.9%. The second half is expected to see a strong recovery as vehicle numbers on the road return to higher levels and the investment in capacity in the Legal Services business bears fruit. The Group has proposed an interim dividend of 0.5p. Management has given guidance for the full year and we reintroduce estimates for this year and next which reflect the base from which the Group can now build. Clearly, there is considerable uncertainty as to what COVID-19 may yet bring. However, Anexo’s management team takes a positive view on the Group’s future performance.