Anexo Group PLC High Court Judgment re. Volkswagen (1304J)
April 08 2020 - 1:00AM
UK Regulatory
TIDMANX
RNS Number : 1304J
Anexo Group PLC
08 April 2020
For immediate release 8 April 2020
Anexo Group plc
('Anexo' or the 'Group')
High Court Judgment re. Volkswagen
Anexo Group plc (AIM: ANX), the specialist integrated credit
hire and legal services provider, notes the preliminary judgment
announced on 6 April 2020 in the High Court of Justice regarding
the class action against Volkswagen AG ('VW') and its subsidiaries
(the 'VW Emissions case'). Mr Justice Waksman ruled that VW
subverted key air pollution tests by using special software to
reduce emissions of nitrous oxides under test conditions. The High
Court ruling applies not only to VW cars but also to those
manufactured by Audi, SEAT and Skoda.
A specialist team within the Group's legal services division,
Bond Turner, is acting on behalf of a number of individuals who
have registered their intention to pursue a claim against VW. A
number of these clients have been acquired through their status as
past customers of the Group and others have contacted Bond Turner
following a marketing campaign which was predominantly conducted
through social media channels. The total number of claims currently
being handled by Bond Turner stands at circa 8000 and this number
is expected to grow following publicity around the ruling by the
High Court.
VW has previously been involved in and settled a number of legal
actions concerning emissions in various jurisdictions globally and
the quantum of damages awarded has varied widely. In the US,
individual settlements included a number of options and the
compensation packages were set at various levels depending on the
age and model of vehicle involved, with the sums ranging from
US$5,100 (GBP4,150) to over US$40,000 (GBP32,520). In Germany,
there was a similar range of options depending on the age and model
of the vehicle involved, and the sums ranged from EUR1,350 to
EUR6,257 (GBP1,190 to GBP5,540) plus a payment of EUR190 (GBP170)
towards legal costs. In Australia, the settlement sums varied from
AU$1,589 to AU$6,554 (GBP800 to GBP3,290).
The current litigation in the High Court is ongoing and
therefore the outcome cannot be guaranteed at present. Following
the preliminary judgement, legal advisers to VW have announced that
they may consider an appeal. In the event of a settlement being
agreed, Bond Turner would be entitled to claim a percentage of any
damages awarded to each of its clients, as well as legal costs.
Given the wide range of previous settlement levels, the Board
considers that it would be inappropriate to give any guidance on
the potential value of individual claims.
Staff costs relating to the VW Emissions case have been expensed
as normal through Bond Turner's P&L and are included in the
Group's past guidance to the market. The case has been assigned to
a specific advocacy team and no staff have been diverted from the
normal claims actions which make up the majority of Bond Turner's
caseload. The Group has not currently included any potential
revenue from the VW Emissions case in its forecasts. In order to
minimise the impact on the Group's overall cash resources, the
Group is in advanced discussions with a potential lender to fund,
at an agreed rate, the associated working capital for these
cases.
The Board believes that, in the event of a settlement, the
percentage of potential damages and associated costs accruing to
Anexo would have a significant positive impact on the Group's
expectations for profits and cash flow for the relevant accounting
period. Any revenue from a settlement would be unlikely to accrue
until FY-2021 at the earliest. There is no certainty that a
settlement in favour of Bond Turner's clients will be reached, nor
is there any guarantee that such a settlement would include
financial compensation.
The Board continues to monitor the situation and will make
further announcements as and when appropriate.
- Ends -
For further enquiries:
Anexo Group plc +44 (0) 151 227 3008
www.anexo-group.com
Alan Sellers, Executive Chairman
Mark Bringloe, Chief Financial Officer
Nick Dashwood Brown, Head of Investor
Relations
Arden Partners plc
(Nominated Adviser and Broker)
John Llewellyn-Lloyd / Benjamin +44 (0) 20 7614 5900
Cryer (Corporate) www.arden-partners.co.uk
Fraser Marshall (Equity sales)
Berenberg
(Joint Broker)
Mark Whitmore/Yudith Karunaratna
(Financial Communications) +44 (0) 20 3207 7800
Henry Harrison-Topham / Steph Watson +44 (0) 20 7466 5000
Anexo@buchanan.uk.com
Notes to Editors:
Anexo is a specialist integrated credit hire and legal services
provider. The Group has created a unique business model by
combining a direct capture Credit Hire business with a wholly owned
Legal Services firm. The integrated business targets the
impecunious not at fault motorist, referring to those who do not
have the financial means or access to a replacement vehicle.
Through its dedicated Credit Hire sales team and network of
1,100 plus active referrers around the UK, Anexo provides customers
with an end-to-end service including the provision of Credit Hire
vehicles, assistance with repair and recovery, and claims
management services. The Group's Legal Services division, Bond
Turner, provides the legal support to maximise the recovery of
costs through settlement or court action as well as the processing
of any associated personal injury claim.
The Group was admitted to trading on AIM in June 2018 with the
ticker ANX.
For additional information please visit: www.anexo-group.com
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END
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