NAHL Group PLC Sale of Homeward Legal (2981X)
April 25 2023 - 2:00AM
UK Regulatory
TIDMNAH
RNS Number : 2981X
NAHL Group PLC
25 April 2023
Prior to publication, the information contained within this
announcement was deemed by the Group to constitute inside
information for the purposes of Regulation 11 of the Market Abuse
(Amendment) (EU Exit) Regulations (SI 2019/310). With the
publication of this announcement, this information is now
considered to be in the public domain.
25 April 2023
NAHL Group PLC
("NAHL", the "Company" or the "Group")
Sale of Homeward Legal
NAHL (AIM: NAH), a leading marketing and services business
focused on the UK consumer legal market, is pleased to announce the
sale of its wholly owned subsidiary, Homeward Legal Limited
("Homeward Legal"). Homeward Legal utilises online marketing to
target homebuyers and sellers in England and Wales to generate
leads and instructions which it then passes to panel law firms and
surveyors in the conveyancing sector for a fixed cost. The
subsidiary, which has 6 employees and has been a part of NAHL since
2015, is considered non-core to the Group's principal focus in
Consumer Legal Services and Critical Care and its sale will allow
the Group to further focus on its key growth areas.
The consideration for the sale of Homeward Legal is to be the
equivalent of the net asset value of Homeward Legal on completion,
which is subject to final determination but is expected to be
around GBP150,000. Approximately GBP30,000 of this will be payable
in cash immediately and the balance in two annual instalments.
Additionally, NAHL can receive contingent consideration in each of
the two years following completion, upon Homeward Legal achieving
certain performance milestones. The contingent consideration will
be based on a share of profits and trade debtors recovered above
certain amounts. The Board believes that the contingent
consideration will not be material.
Sale proceeds will be used for general corporate purposes.
Furthermore, the sale will strengthen the Group's balance sheet and
have a positive impact on the Company's gross margin.
During the year ended 31 December 2022, Homeward Legal generated
GBP1.2m in revenue and GBP13,000 operating profit. The purchaser of
Homeward Legal is Richard Rickwood, a former managing director of
the Group's Residential Property business.
James Saralis, CEO of NAHL, commented:
"The sale of Homeward Legal is a good outcome for all
stakeholders. It is in keeping with our strategy to build a
sustainable and profitable business in the medium term and will
allow us to continue to develop the two core elements of our
business, Consumer Legal Services and Critical Care. We are
confident that under its new ownership, Homeward Legal will uphold
its customer and colleague first approach and wish the new owner
and staff every success for the future."
Enquiries:
NAHL Group PLC via FTI Consulting
James Saralis (CEO) Tel: +44 (0) 20 3727 1000
Chris Higham (CFO)
Allenby Capital (AIM Nominated Adviser & Broker) Tel: +44 (0 ) 20 3328 5656
Jeremy Porter/Vivek Bhardwaj (Corporate Finance)
Amrit Nahal/Stefano Aquilino (Sales & Corporate
Broking)
FTI Consulting (Financial PR) Tel: +44 (0) 20 3727 1000
Alex Beagley NAHL@fticonsulting.com
Sam Macpherson
Amy Goldup
Notes to Editors
NAHL Group plc (AIM: NAH) is a leader in the Consumer Legal
Services market. The Group provides services and products to
individuals and businesses in the through its two divisions:
-- Consumer Legal Services provides outsourced marketing
services to law firms through National Accident Helpline and claims
processing services to individuals through Your Law, Law Together
and National Accident Law. In addition, it also provides property
searches through Searches UK.
-- Critical Care provides a range of specialist services in the
catastrophic and serious injury market to both claimants and
defendants through Bush & Co.
More information is available at www.nahlgroupplc.co.uk , www.national-accident-helpline.co.uk , www.national-accident-law.co.uk and www.bushco.co.uk .
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END
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