TIDMNAH
RNS Number : 6792A
NAHL Group PLC
24 January 2024
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 2019/310. With the publication of
this announcement, this information is now considered to be in the
public domain.
24 January 2024
NAHL Group PLC
("NAHL" or the "Group")
Year End Trading Update
Continued progress and significant reduction in net debt
The Board of NAHL (AIM: NAH), a leading UK marketing and
services business focused on the UK consumer legal market, is
pleased to provide an update on trading for the financial year
ended 31 December 2023 (the "Period").
Highlights
-- Continued growth in Group revenues and profit before tax
-- 73% increase in cash received from settlements, reflecting
92% more claims settled in the Group's fully integrated law firm,
National Accident Law ("NAL")
-- Over 35,000 new enquiries generated by National Accident
Helpline, continuing its growth in market share
-- Strong performance from Bush & Co., achieving 11% growth
in revenue and operating profit margin increase of 400 bps to
30%
-- Net debt reduced by 27% to GBP9.7m (31 December 2022: GBP13.3m)
Group results
Based on unaudited results, the Board expects to report revenues
for the Period of approximately GBP42.2m (2022: GBP41.4m), 2% ahead
of the prior year. Operating profit is expected to be slightly
ahead of market expectations at approximately GBP4.1m (2022:
GBP4.8m) and reflects the planned investment in scaling NAL for
greater returns in the medium to long term.
Profit before tax ("PBT") for the Period is expected to be in
line with market expectations at approximately GBP0.6m (2022:
GBP0.6m). These statutory PBT figures include approximately GBP0.8m
of amortisation of intangible assets related to business
combinations. This amortisation will conclude in the current year
to 31 December 2024.
The Group continued to generate strong levels of cash flow
through the second half of the year and as a result has been able
to significantly reduce net debt, ahead of market expectation. Net
debt at 31 December 2023 was GBP9.7m, down 16% from GBP11.5m at 30
June 2023 and down 27% from GBP13.3m at 31 December 2022. The
market expectation was GBP10.3m at 31 December 2023.
Divisional performance
Revenues in the Consumer Legal Services division are expected to
be 2% lower than last year at approximately GBP27.6m (2022:
GBP28.3m) and operating profit 33% lower at GBP2.8m (2022:
GBP4.2m). This performance was anticipated due to the continued
investment in scaling NAL alongside a reduction in revenue and
operating profit from the joint ventures and a reduction in revenue
from Residential Property following the disposal of Homeward Legal
in April 2023. The personal injury business remained profitable
after deducting members' non-controlling interests in LLPs.
The personal injury market has remained subdued but National
Accident Helpline has continued to grow market share, generating
over 35,000 enquiries in the Period, which is 2% higher than the
prior year(2) .
The Group distributed 8,518 new enquiries into NAL in the
Period. Whilst this is slightly less than the prior year (2022:
8,760), these enquiries comprise a richer mix than 2022 and so are
anticipated to generate a higher return on settlement. The firm
ended the year processing 9,983 ongoing claims (31 December 2022:
10,860) and NAL significantly increased cash from settlements by
73% to GBP6.0m (2022: GBP3.5m), demonstrating the growing maturity
of the firm and contributing to the Group's overall reduction in
net debt.
The division continued to utilise its flexible placement model
and enjoyed ongoing demand for enquiries from its panel of
third-party law firms, benefitting cash flow. The Group's mature
joint venture partnerships performed well, generating GBP4.4m of
cash (2022: GBP3.3m), after deducting drawings to LLP members.
In the Group's Critical Care division, Bush & Co. had a very
strong year. Revenues are expected to be 11% higher than last year
at approximately GBP14.6m (2022: GBP13.2m) and operating profit is
expected to be 29% ahead at approximately GBP4.4m (2022:
GBP3.4m).
These results reflect an excellent year for expert witness
services, in which revenues grew by 35% due to an increase in the
volume and value of reports issued to customers. Case management
revenues for the Period were in line with the prior year and Bush
& Co. Care Solutions grew revenues by 39%. To support this
growth, Bush & Co. increased the number of case managers and
expert witnesses it works with by 23%.
James Saralis, CEO of NAHL, commented:
"2023 represented another year of solid progress and I am
delighted to be reporting a strong financial performance for
NAHL.
"Whilst the personal injury market remained subdued, we have
successfully completed our transformation into an integrated law
firm with improved cash generation and NAL increased cash from
settlements by 73% to GBP6.0m. Critical Care has delivered a strong
financial and operational performance and there is an exciting
opportunity to deliver further market share growth.
"The Group continued to generate high levels of cash and this
led to a 27% reduction in net debt to GBP9.7m, which was well ahead
of market expectations. The steps we have taken in recent years to
enhance the Group have borne fruit and NAHL ended its financial
year in a robust position with cause to be optimistic for the
future."
Notes:
1) All full year 2023 numbers remain subject to audit.
2) Like-for-like enquiry numbers exclude tariff-only road
traffic accident claims, which the Group ceased to process in
February 2022.
For further information:
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/Liz Kirchner (Corporate Finance)
Amrit Nahal/Stefano Aquilino (Sales & Corporate
Broking)
FTI Consulting (Financial PR) Tel: +44 (0) 20 3727 1000
Alex Beagley NAHL@fticonsulting.com
Eleanor Purdon
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 National Accident Law,
Law Together and Your 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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