Q1: Anexo Group has this week announced its Interim Results for the six months ended 30 June 2022, what were the key takeaways?
A1: There’s momentum and to spare in this business, with 42% YoY sales growth in H1, operating profits up 55% and EPS +53%.
The Housing Disrepair business, which is a significant growth opportunity in our view, doubled in size during the period under review.
Vehicle hire numbers drove strong growth in credit hire and the company has flagged increasing cash generation in H2.
Q2: Has this changed your forecasts in any way?
A2: No change to the underlyings. We have added a modest extra element to the interest charge, which seems only sensible given the inexorable upward direction of rates.
Q3: How do you view the outlook for Anexo Group?
A3: I am excited by the outlook for the group. I think that the new developments, alongside the traditional business, are exceptionally well-placed. Housing Disrepair and Emissions are tapping into huge markets and returns in these areas are extremely compelling.
We await with interest the anticipated upcoming VW settlement, which we believe will set the scene for a new cycle of growth and added profitability for the company.