Anexo Group is coming to AIM with a £25 million capital raising, but who are they and what they plan to do is something investors may not be that aware of.
Anexo is the brainchild of a barrister, Alan Turner, and his wife Samantha Moss. They are in the process of collecting a number of complementary businesses that will form part of Anexo. Among the components of Anexo are Bond Turner, the Liverpool legal firm previously known as Armstrong Solicitors, and a credit hire firm called Edge.
Anexo has already raised £25 million and will be looking to raise £15 million for the company and £10 for shareholders selling out as part of its listing.
Invest in a law firm?
This is certainly not a traditional way a law firm goes about raising money. Usually they are partnerships, with lawyers buying into the firm when they became a partner, and shouldering the costs and reaping the profits. However this trail to the stock market has been blazed by a number of other firms, including NewLaw Solicitors and Principia Law.
Anexo is going to be focusing on road traffic accident claims, sourcing possible leads from other companies that are involved in the clear up process, including vehicle workshops and recovery agents. Anexo will provide clients with a new vehicle via its credit hire arm, replacing any existing vehicle that has been written off.
Anexo will work with what it calls impecunious customers – people who do not have the means to go out and get themselves a new car.
On the legal side, the firm has 127 fee earners out of a total staff of 200, and can also boast in-house barristers. It manages professional negligence claims as well as sourcing experts, consultants and photographers where needed via its professional legal services arm.
Anexo has expansion plans
The firm is hoping that capital raised via the AIM listing will give it the ability to hold out for higher settlements than might previously have been the case. It also wants to expand further in the Liverpool and Manchester markets and to hire more barristers in-house. It is also expected that the Civil Liability Bill, which looks like it could be passed next year, will force some law firms out of the market for accident liability claims, and reduce competition.
It is not often that an opportunity arises to invest in a law firm. Anexo looks to be well positioned to take advantage of the increasing amounts of civil litigation going on in the UK. The investment capital means that it can reinforce its position with additional services, like credit hire.
Anexo closed at 107.50 yesterday and is currently valued at 108 after less than 48 hours.
