Anexo post interim results

Anexo Group plc (AIM: ANX), has published Interim Results for the six months ended 30 June 2020 with the Board reporting that the Group has attained its target of net cash generation throughout the period. It reports that this milestone has been achieved against the backdrop of the COVID-19 pandemic which, despite the Group’s two core divisions remaining fully operational throughout, has inevitably affected performance in the latter part of H1 2020. In particular, the number of vehicles on the road fell sharply as the UK went into lockdown, but has since recovered to exceed recent peaks. Anexo has continued to invest in its business and the Board is confident in the outcome for FY 2020.

  • Net cash inflow from operating activities of £6.2 million (H1 2019: net cash inflow £2.5 million)

  • Overall net cash inflow (excluding the recent fundraise) of £2.4 million (H1 2019: net cash outflow £7.0 million)

  • Significant reduction in cash absorbed into working capital reducing from £13.0 million in H1 2019 to £4.5 million in H1 2020, supporting the cash generative nature of the Group during the period

  • Overall reduction of £4.0 million in adjusted operating profit, largely as a result of investment in staff to drive settlements and cash receipts in FY 2021 (£2.6 million), investment in the VW case acquisition (£0.7 million) and office and IT costs associated with the headcount increase (£0.5 million)

  • Proposed interim dividend of 0.5p per share (H1 2019: 1 penny per share)

  • Net debt balance at 30 June 2020 stood at £19.6 million (30 June 2019: net debt of £23.4 million)

  • The Board expects H2 2020 underlying profit before tax (before investment in VW emissions case acquisition) to recover strongly

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