Nahl Group Plc · LSE:NAH
Nahl — AIM Investor Focus (April 2015)
19 slides from Nahl's conference presentation, April 2015
Slide 1: NAHL Group plc Presentation to AIM Investor Focus
www.nahlgrouplc.co.uk NAHL Group plc Presentation to AIM Investor Focus April 2015
Slide 2: Agenda
Agenda 1 • Business Overview • 2014 Financial and Operational Performance • Growth strategy • Questions
Slide 3: Business Overview
www.nahlgrouplc.co.uk Business Overview
Slide 4: NAHL at a glance
NAHL at a glance 3 Twelve month share price Industry data & sector 330 Current index FTSE AIM All-Share 310 290 Sector Media 270 Market capitalisation £ 127.56m Share price (p) 250 Shares in issue 41.15m 230 210 NAH LN equity Free float 31.61m 190 Share Price High (Moving 52W) 311.50p (07/04/15) 170
Slide 5: The UK PI litigation market and how we operate
The UK PI litigation market and how we operate 4 Segmental breakdown of the market1 NAH Group marketing spend c.£23m per annum • Circa 1 million claims per annum • Lower value road traffic accident (RTA) represents 76% of the market Consumer (claimant) 2% 22% RTA 4 Non-RTA Consumer contacts NAH Medi
Slide 6: Brand and marketing – our expertise
Brand and marketing – our expertise 5 Most trusted and recognised brand1 • Research shows that more people would prefer to choose a helpline when making a claim1 Brand Brand Gross leads Other Awareness1 Attribution2 15% Clean leads Helpline / CMC 85% 64% 34% Enquiries Insurer 29% 68% 39% Solicitors
Slide 7: Brand and marketing - our leadership position
Brand and marketing - our leadership position 6 Online Brand Impressions 12 • NAH remains first choice when searching online 10 • Over £23 million marketing spend – a significant barrier to Thousands 8 entry 6 • Biggest daytime TV spend1 and highest internet spend2 in PI 4 2 • New “White Knight” cam
Slide 8: Panel Law Firms – continued evolution of partnerships
Panel Law Firms – continued evolution of partnerships 7 • Continued strategy of working with larger more efficient firms • Panel has reduced from 110 to 50 in the last 24 months • Places on NAH’s panels remain in demand as PLFs receive: • a predictable and regular volume of enquiries • a high qualit
Slide 9: Products & Services – further development, new opportunities
Products & Services – further development, new opportunities 8 Successful trial concluded in November Significant opportunities to develop Cuts costs involved and reduces Fitzalan product offering Enhanced processing time by up to 2 years Improved revenue generation from Med Neg Rolling ou
Slide 10: 2014 Financial and Operational performance
www.nahlgrouplc.co.uk 2014 Financial and Operational performance
Slide 11: 2014 Highlights – Delivering to Strategy
2014 Highlights – Delivering to Strategy 10 • Good revenue growth – 10.4% to £43.8m (2013: £39.7m) • Significant improvement in profitability • Operating Profit – £12.7m (2013: £9.8m) – up 29.3% • Operating Profit margin – 29% (2013: 25%) • Strong enquiry growth of 15.3% delivered from increased mar
Slide 12: Enquiries: continuing growth, improved conversion
Enquiries: continuing growth, improved conversion 11 Enquiries • Enquiry growth accelerated in H2, overall +15.3% vs 2013 Year to Year to Enquiries % change • Double digit growth in Medical Negligence and 31 Dec 2014 31 Dec 2013 non-RTA, our key focus areas RTA 15.1% 20,114 17,480 • RTA growth fuell
Slide 13: Income Statement
Income Statement 12 Continued profit growth Group Revenue 25 22.1 21.7 20.8 18.9 20 Year to 31 Year to 31 £’000 % change Dec 2014 Dec 2013* 15 £m 18.3 19.4 19.0 10 16.1 Revenue 5 Solicitor Income 11.7% 38,445 34,423 2.5 2.8 2.7 2.7 0 Ongoing Products 11.2% 4,342 3,904 H1 2013 H2 2013 H1 2014 H2 2014
Slide 14: Balance sheet and cash flow
Balance sheet and cash flow 13 Robust balance sheet Excellent cash conversion £’000 31 Dec 2014 31 Dec 2013 Year to 31 Year to 31 £’000 Dec 2014 Dec 2013 Fixed assets 186 371 Goodwill 39,897 39,897 Underlying operating 12,713 9,829 profit* Working capital (5,134) (5,421) Depreciation 212 245 Cash &
Slide 15: Dividend and EPS
Dividend and EPS 14 Dividend EPS Interim Final Total Year to 31 Year to 31 Pence Dividend Dividend Dividend Dec 2014 Dec 2013 Dividend per share 5.0p 10.7p 15.7p Continuing Basic EPS (p) 23.0 25.1 Total dividends paid £2,057,500 £4,403,050 £6,460,550 Group Basic EPS (p) 20.6 23.0 Share Price at peri
Slide 16: Growth strategy
www.nahlgrouplc.co.uk Growth strategy
Slide 17: Acquisition of Fitzalan Partners
Acquisition of Fitzalan Partners 16 Overview • Online marketing specialists focused on conveyancing and property sector • Owns & operates four platforms under the Fridaysmove, In-Deed, Homeward Legal & Surveyor Local brands • NAHL paying up to £4.3m – an initial cash consideration of £3.0m and a fur
Slide 18: Growth Strategy – Business Opportunities
Growth Strategy – Business Opportunities 17 Goals Enablers Continue to target controlled share growth in NAH Market share development Grow market share in Conveyancing sector through operational improvement and enhancing digital marketing New partnering relationships with significant PLFs driv
Slide 19: Questions
www.nahlgrouplc.co.uk Questions