Credit hire and legal services firm to raise capital on stock market
Credit hire, claims management and claimant lawyer company Anexo Group is listing on the stock market in a flotation that values the group at £110m.
The group, which was set up under the alternative business structure scheme for legal services, combines a credit hire firm called Edge and a legal services provider, Bond Turner.
The listing on the London Stock Exchange’s Alternative Investment Market will raise £10m investment capital for the firm, and a further £15m for its selling shareholders, of which more than £5m will be repaid to the company.
Anexo is a niche firm specialising in providing credit hire and legal support to impecunious no-fault motorists at no upfront cost. It said this is a “significant addressable market”.
It said it provides an integrated claims management service to customers sourced directly from garages, rather than from insurers and brokers.
Anexo said it has seen organic growth since 2015 of about 10%, and pointed to 2017 revenue of £44.8m and pretax profit of £14.6m.
The funds raised in the placing will be used to grow market share in a consolidating market, hire more legal staff, invest in additional vehicles, and expand coverage across England and Wales.
“Over the last 20 years our highly specialist team has worked hard to build Anexo into an integrated credit hire and litigation focused group,” said chairman Alan Sellers. “Joining the London Stock Exchange and raising £15 million for the company will remove the constraints to enable expansion of our proven model and deliver significant organic growth in the future.
“There is an ever-increasing UK credit hire and legal claims market opportunity and our focus on impecunious claimants has allowed us to create a business that we believe will scale quickly and generate near-term returns for our new shareholders.”