TIDMNAH
RNS Number : 3466U
NAHL Group PLC
01 August 2022
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.
1 August 2022
NAHL Group PLC
("NAHL" or the "Group")
Half Year Trading Update
NAHL (AIM: NAH), the leading UK marketing and services business
focused on the UK consumer legal market, is pleased to provide a
trading update for the first half of its current financial year,
covering the six months to 30 June 2022 ("the Period").
Group results
During the Period, the Group continued to perform in line with
the Board's expectations. Revenues are expected to increase by 6%
to GBP20.8m (H1 2021: GBP19.5m), while underlying operating profit
is expected to decrease by approximately 8% to GBP2.3m (H1 2021:
GBP2.5m) due to the planned investment in the Group's fully
integrated law firm, National Accident Law ("NAL"). The Group has
made further progress in reducing net debt and at 30 June 2022, net
debt was GBP14.5m, down 7% from GBP15.5m at 31 December 2021.
The Board expects the Group to meet market expectations for the
full year.
Divisional performance
Within the Consumer Legal Services division, National Accident
Helpline generated almost 18,000 personal injury enquiries in the
Period. This represented a 27% increase on the first half of 2021.
In February 2022, the Group concluded that it would reject
tariff-only road traffic accident claims, as they were no longer
economically viable to process following the introduction of the
Civil Liability Act in 2021. As a result, enquiries processed since
this point are of a higher value.
The increase in enquiry numbers was achieved by gaining market
share in a claims market that has remained subdued following the
introduction of the Civil Liability Act reforms and the ongoing
impact of the COVID-19 pandemic during the Period. The Board
continues to anticipate market growth over the longer term and with
this in mind, in June 2022, National Accident Helpline launched a
new TV advertising campaign, intended to further strengthen its
brand position and contribute to volume growth. This TV advertising
campaign will continue in the Autumn.
The Group continued to grow and invest in NAL to create a higher
margin business. 25% of total enquiries were distributed to NAL in
the Period, representing an increase in the number of enquiries
allocated to NAL of 61% compared to the first half of 2021. NAL
demonstrated the growing maturity of its book of claims, by
collecting GBP1.5m of cash from settlements in the Period, which
was 50% more than the same period in the prior year. At the end of
the Period, NAL had increased the number of ongoing claims that it
was processing to 9,884 claims, up from 7,918 claims at 31 December
2021.
The Group's residential conveyancing business, Homeward Legal,
experienced a slowdown in the second quarter of 2022 in line with
the wider market, following two years of increased activity fuelled
by the stamp duty land tax holiday and sustained low interest
rates. The Group continues to explore the potential sale of
Homeward Legal and a further update will be provided when
appropriate. The Group's property search business, Searches UK,
proved more resilient in the Period, and attracted several new
customers in the first half of the year.
The Critical Care division (Bush & Co.) continued its
planned investment in the business and progressed its recovery from
the effects of the COVID-19 pandemic. The number of expert witness
reports completed and issued to customers increased by 11% in the
Period, compared to last year, and the number of new instructions
for expert witness reports was also up by 11%. Whilst average case
management revenues remain below pre-COVID-19 levels, due to the
new mix of face-to-face and online work, the business delivered 12%
growth in the number of initial needs assessments ("INAs")
completed in the Period, 19% growth in new instructions for INAs
and maintained a strong book of ongoing case management clients
generating recurring monthly revenue. The business has also
recruited 41 new associates in key specialisms and now works with
96 case managers and 115 expert witnesses across the UK.
Notice of Interim results
NAHL expects to announce its results for the six months ended 30
June 2022 on 27 September 2022.
James Saralis, CEO of NAHL, commented:
"The performance of the Group in the first half of the year was
in line with our expectations and we continue to make progress in
both of our divisions. In Consumer Legal Services, the 50% increase
in cash from settlements is clear evidence of the growing maturity
of our law firm, National Accident Law, and it is pleasing that our
market leading brand, National Accident Helpline, grew the number
of personal injury enquiries it generated by 27%. Separately, our
Critical Care division has developed a strong pipeline of work,
reaping the benefits of targeted investments made in marketing and
business development, and recruited 41 new associates to support
growth.
"Despite the current macro-economic uncertainty, based on our
performance in H1, the Board expects the Group to meet market
expectations for the full year."
For further information please call:
NAHL Group PLC via FTI Consulting
James Saralis (CEO) Tel: +44 (0) 20 3727 1000
Chris Higham (CFO)
Allenby Capital (AIM Nominated Adviser Tel: +44 (0 ) 20 3328
& Broker) 5656
Jeremy Porter/Liz Kirchner/Vivek Bhardwaj
(Corporate Finance)
Amrit Nahal (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
Homeward Legal; and claims processing and conveyancing 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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