Nahl Group Plc · LSE:NAH
Nahl — H1 2017 Earnings Presentation
19 slides from Nahl's earnings presentation, Sep 19, 2017
Slide 1: NAHL Group plc Interim Results 2017
NAHL Group plc Interim Results 2017 19 September 2017 1
Slide 2: Agenda
Agenda • Overview • Financial Performance • Divisional Review • Group Strategy and Outlook • Questions 2
Slide 3: Overview
Overview 3
Slide 4: H1 Highlights – Performance in line with expectations
H1 Highlights – Performance in line with expectations Financial Highlights • Revenue of £24.9m (2016 H1: £25.8m) • Underlying operating profit of £7.3m (2016 H1: £8.8m) • Underlying operating profit margin of 29.5% (2016 H1: 34.0%) • Profit before tax of £5.3m after £1.0m brand repositioning charge
Slide 5: Financial Performance
Financial Performance 5
Slide 6: Income Statement – Profit meets expectations
Income Statement – Profit meets expectations Twelve months to 31 Group revenue Six months to Six months to December £’000 % change 30 June 2017 30 June 2016 2016 30 25 1.5 2.0 4.7 2.1 4.3 4.5 20 5.2 Underlying Revenue 5.2 5.6 £m 15 23.9 21.2 Personal Injury (6.4%) 14,854 15,864 30,011 10 15.9 14.1 1
Slide 7: Balance Sheet and Cash flow - Robust balance sheet and solid cash conversion
Balance Sheet and Cash flow - Robust balance sheet and solid cash conversion Twelve Twelve months to 31 Six months to Six months to months to 31 Six months Six months to December £’000 30 June 2017 30 June 2016 Dec 2016 £’000 to June 2017 30 June 2016 2016 Total fixed assets 68,473 69,549 69,201 Und
Slide 8: Dividend and EPS – Attractive dividend yield
Dividend and EPS – Attractive dividend yield Twelve Interim Interim months to 31 Dividend Dividend Total Dividend Six months to Six months to December 2017 2016 2016 30 June 2017 30 June 2016 2016 Dividend per share 5.30p 6.35p 19.05p Group Basic 9.0p 13.2p 27.0p EPS Total dividends £2,412k £2,880k
Slide 9: Divisional Review
Divisional Review 9
Slide 10: Personal Injury – Progress made on evolution of business model
Personal Injury – Progress made on evolution of business model • H1 performance in line with plan • Revenue declined by 6.4% to £14.9m, operating profit down by 23.3% to £5.4m • Good progress made with our strategy of implementing new commercial and structural arrangements, relaunching the brand and
Slide 11: Personal Injury – ABS update
Personal Injury – ABS update • Part of Group’s strategic plans to prepare the Group for market changes announced by Government in Feb17 • Alternative Business Structure (ABS) with NewLaw, subsidiary of Redde plc, commenced Jul17 • ABS trades under the name Your Law LLP – it provides NAH with ownersh
Slide 12: Critical Care – continued strong performance
Critical Care – continued strong performance • Positive contribution from division • Revenue of £5.6m, up 6.3% with operating profit of £2.0m, up 10.2% • Enquiry volumes have remained strong • Benefits of focus on sales and marketing starting to reap benefits • Continued focus on new strategic busin
Slide 13: Residential Property – strong margin performance
Residential Property – strong margin performance • Delivered growth in profitability despite challenging market conditions, operating profit up 17.5% to £0.8m • Solid margin improvement as a result of: • Panel rationalisation • New product development • Localised pricing initiatives • Continued focu
Slide 14: Group Strategy and Outlook
Group Strategy and Outlook 14
Slide 15: Group strategic priorities – opportunities from change
Group strategic priorities – opportunities from change Market Panel Product and Targeted development development service acquisitions development Invest in the PI market Manage PI enquiries Move critical care into Consider opportunity to relaunch the NAH via our new lower value claims provided by co
Slide 16: Summary & Outlook
Summary & Outlook • Results in line with expectations • Good progress made on preparations for regulatory changes in PI division • Delivery on NAH brand relaunch, conclusion of ABS with NewLaw and progress on second ABS • Critical Care division growing market share and pursuing new strategic busines
Slide 17: Questions
Questions 17
Slide 18: NAHL Group plc – a Broader, More Diversified Business
NAHL Group plc – a Broader, More Diversified Business • NAHL Group plc is a leading UK consumer marketing and services business focused on the UK consumer legal services market • The Group comprises three divisions: • Personal Injury via NAH which provides outsourced marketing services and products
Slide 19: NAHL At a Glance
NAHL At a Glance Twelve month share price Industry data & sector 300 Current index FTSE AIM All-Share 250 Sector Media Market capitalisation £59.62 million 200 Shares in issue 45.51m Last Price Free float 42.96m 150 Share Price Year High 270.25p Share Price Year Low 118.50p 100 Total 2016 Dividend 1