NAHL Group PLC · LSE:NAH
NAHL — H1 2020 Earnings Presentation
15 slides from NAHL's earnings presentation, Sep 22, 2020
Slide 1: Interim Results Presentation
DEMONSTRATING Interim Results Presentation 22 September 2020 1
Slide 2: Introduction
INTRODUCTION Contents Presentation team 1. Interim results overview Caroline Brown - Chair 2. COVID-19 impact and response Caroline became Chair in January 2019 having joined the Board in December 2018. 3. Financial results She is a Non-Executive Director and 4. Trading review commercially focused b
Slide 3: Interim Results Overview
INTERIM RESULTS OVERVIEW • The business remained profitable and enjoyed strong free cash flow generation • Group responded decisively to COVID-19 and the exit trajectory from H1 is encouraging • The Group has restructured and has reduced its costs • The Group’s joint venture and wholly owned law fir
Slide 4: H1 Financial Highlights
H1 FINANCIAL HIGHLIGHTS Revenue -21.7% Underlying operating PBT after profit1 -43.3% exceptional costs2 £20.2m £3.7m £1.8m H1 2019: £25.8m H1 2019: £6.5m H1 2019: £4.6m Underlying EPS1 Free cash flow1 +585% Net debt at 30 June 2.1p £3.8m £18.5m H1 2019: 7.4p H1 2019: £0.6m Dec 2019: £21.0m 1 Alterna
Slide 5: COVID-19 Response
COVID-19 RESPONSE Return Resilience Reaction Month 1 – 12 Create a plan to return the business to growth, Month 1 – 6 scaling quickly as lockdown eases and the Month 0 – 1 Address near-term cash management, liquidity longer-term impact becomes clearer and resilience challenges through lockdown Addre
Slide 6: Financial Performance
FINANCIAL PERFORMANCE First half £m 2020 2019 Variance 2019 • Financial performance significantly impacted by Consumer Legal Services 14.5 19.2 (24.7)% 37.7 COVID-19 Critical Care 5.7 6.6 (12.9)% 13.6 Revenue 20.2 25.8 (21.7)% 51.3 • Revenue down 22% to £20.2m Consumer Legal Services 2.5 4.8 (47.5)%
Slide 7: Cash and Liquidity Improvements
CASH AND LIQUIDITY IMPROVEMENTS • Free cash flow up 585% to £3.8m (H1 2019: £0.6m), achieved Free cash flow £m through placement optimisation and increased settlements from historical claims 3.8 • Net debt reduced to £18.5m at 30 June from £21.0m at 31 December, providing highest level of liquidity
Slide 8: Trading Review: Consumer Legal Services
TRADING REVIEW: CONSUMER LEGAL SERVICES Performance Personal injury enquiry volumes to mid September and leading indicators • Revenue down 24.7% to £14.5m due largely to reduction in Relative transport usage personal injury enquiry volumes 800 Weekly enquiry numbers Aug: NAHL -30% YoY 100% • Divisio
Slide 9: Building the UK's Leading Volume Processor
BUILDING THE UK’S LEADING VOLUME PROCESSOR 1. Successfully converting 2. Winning claims, delivering 3. Building a store of value to enquiries into claims for customers drive future growth We temporarily slowed placement of 20% growth in claims won in H1 to last year, Small decrease in number of ongo
Slide 10: Trading Review: Critical Care
TRADING REVIEW: CRITICAL CARE Building long- New case Performance term customer management relationships defendant brand • Revenue down 12.9% to £5.7m; Underlying operating profit down through business for the insurance 19.1% to £1.9m development marketplace • Continued strong instruction levels in
Slide 11: Technology Investments
TECHNOLOGY INVESTMENTS Improving customer experience and unlocking operating efficiencies… Consumer Legal Services Critical Care • Operational and marketing efficiency improved • Improved offering for consultants Objective through technological innovation • New products and markets can be developed
Slide 12: Summary and Outlook
SUMMARY AND OUTLOOK Summary Outlook • The business responded decisively to COVID-19, • The Group has observed an increased demand for its remained profitable and demonstrated resilience services as it exits H1 • The Group restructured and has reduced its costs, with • Personal injury enquiries volum
Slide 13: Appendices
Slide 14: Our Strategy for Growth
OUR STRATEGY FOR GROWTH Mission Vision To provide Vision and Become the leading Mission exceptional service provider in the UK in to our consumers our chosen legal and customers by services markets being outstanding at everything we do Competencies Products Core Customer Triage and Legal and acquisi
Slide 15: What We Do
Processing claims Capability C management Generating claims Instructions Highly skilled, empathetic people WHAT WE DO Employees Technical expertise in Natt our markets DERIVED FOR Partners Developing strong relationships to facilitate mutual ‘Shareholders Developing Technologi enabled process