Smaller companies are inherently riskier as they tend to depend more on one key line of products or services, have a narrower geographic reach and perhaps rely more heavily on one or two important executives.
Yet the rewards can be considerable too and any company that generates operating margins north of 30pc and returns on capital of more than 20pc when things are going well must be worth a second look. Anexo is just a firm.
The Liverpool-headquartered company provides credit and legal services to non-fault motorists who are involed in an incident, helping them to get a hire car while their own car is being fixed and possibly to seek legal redress.
Anexo plc (LON:ANX) is a specialist integrated credit hire and legal services group focused on providing replacement vehicles to consumers who have been involved in a non-fault accident.