| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 54.40 | 65 |
| Intrinsic value (DCF) | 23.99 | -27 |
| Graham-Dodd Method | 1.69 | -95 |
| Graham Formula | 0.33 | -99 |
Anexo Group Plc is a UK-based company specializing in integrated credit hire and legal services for clients involved in non-fault motor accidents. Founded in 2006 and headquartered in Liverpool, Anexo provides a comprehensive suite of services, including replacement vehicles, legal assistance, and cost recovery management. The company operates within the Rental & Leasing Services industry under the broader Industrials sector, offering an end-to-end solution that covers vehicle hire, repair settlements, and personal injury claims. Anexo's unique business model positions it as a key player in the UK's motor accident claims market, leveraging its integrated approach to streamline processes for clients. With a market capitalization of approximately £73.6 million, Anexo continues to expand its footprint in the UK's legal and credit hire landscape, catering to the growing demand for efficient post-accident services.
Anexo Group Plc presents a niche investment opportunity within the UK's credit hire and legal services market. The company's integrated business model offers a competitive edge, with consistent revenue generation (£149.3 million in FY 2023) and profitability (net income of £15.1 million). However, investors should note the company's relatively high total debt (£76.4 million) and modest cash reserves (£8.4 million), which could pose liquidity risks. The diluted EPS of 0.13 and a dividend yield of 2 GBp per share indicate stable returns, but the low beta (0.393) suggests limited volatility, which may appeal to conservative investors. The company's focus on non-fault accidents provides a steady demand stream, though regulatory changes in the UK motor claims industry could impact future growth.
Anexo Group Plc competes in the UK's credit hire and legal services market by offering an integrated solution that combines vehicle replacement with legal support. Its competitive advantage lies in its end-to-end service model, which reduces friction for clients and improves cost recovery efficiency. The company's legal expertise allows it to navigate the complexities of motor accident claims, giving it an edge over pure-play credit hire firms. However, Anexo faces competition from larger players with broader geographic reach and deeper financial resources. The UK market is also highly regulated, with frequent legal reforms impacting claim processing and profitability. Anexo's ability to maintain strong relationships with insurers and repair networks is critical to its sustained success. While its niche focus provides stability, diversification into adjacent services could mitigate risks associated with regulatory changes in the motor claims sector.