Slide 1: NAHL Group plc Preliminary Results 2016
NAHL Group plc Preliminary Results 2016 21 March 2017 1
Slide 2: Agenda
Agenda • 2016 Group Highlights • Financial Performance • Divisional Review • Growth Strategy and Outlook • Questions • Appendices 2
Slide 3: 2016 Group Highlights
2016 Group Highlights Financial • Trading in line with expectations • Underlying revenue declined 2.6% to £49.4m (2015: £50.7m) • Underlying operating profit up 15.1% to £18.0m (2015: £15.6m) • Underlying operating profit margin increased by 5.6 percentage points to 36.4% (2015: 30.8%) • Cash genera
Slide 4: Financial Performance
Financial Performance 4
Slide 5: Income Statement
Income Statement Strong margin performance Group Revenue 60 Year ended Year ended 3.5 £’000 % change 31 Dec 2016 31 Dec 2015 50 2.1 9 40 10.4 £m Revenue 30 20 43.8 45.1 Personal Injury (33.4) 30,011 45,081 30 10 Critical Care 390.0 10,353 2,113 0 FY2014 FY2015 FY2016 Residential Property 156.1 9,021
Slide 6: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Robust balance sheet Solid cash conversion Year ended Year ended Year ended Year ended £’000 31 Dec 2016 31 Dec 2015 £’000 31 Dec 2016 31 Dec 2015 Fixed assets 327 259 Underlying operating profit 17,985 15,622 Goodwill / Intangible assets 68,836 67,690 Working capital (1,
Slide 7: Dividend and EPS
Dividend and EPS Dividend EPS Interim Final Total Year ended Year ended £’000 Dividend Dividend Dividend Pence 31 Dec 2016 31 Dec 2015 Dividend per share 6.35p 12.70p 19.05p Group Basic EPS 27.0 25.6 Total dividends £2,880k £5,760k £8,640k Group Diluted 26.5 25.0 EPS Share price at period end* 193.0
Slide 8: Divisional Review
Divisional Review 8
Slide 9: PI – resilient performance against a challenging backdrop
PI – resilient performance against a challenging backdrop • Revenue declined by 33.4% to £30.0m, operating profit down by 9.1% to £14.1m • Controlled decline mainly due to focus on a smaller number of higher value enquiries • Increased operating profit returns (47.0% v 34.4%) • Significantly lower m
Slide 10: PI – the post-consultation landscape
PI – the post-consultation landscape • In February 2017 the Government confirmed its response to the PI consultation it announced in November 2015 • Two key outcomes: • Restriction of compensation for sufferers of minor whiplash injuries to small pre-defined amounts depending on length of injury • R
Slide 11: PI – adapting to change
PI – adapting to change • Group took strategic decision in 2016 to invest in a proportion of our enquiries through different commercial and structural arrangements • Outcome of these initial trials has proved very encouraging and we are progressing these arrangements into longer term agreements • In
Slide 12: Critical Care – strong performance, ahead of plan
Critical Care – strong performance, ahead of plan • Strong performance with division trading ahead of plan, making an important contribution to Group revenues • Revenue of £10.4m delivered operating profit of £3.8m in its first full year of trading • Group continues to see a good return on its inves
Slide 13: Residential Property – solid revenue & profit performance
Residential Property – solid revenue & profit performance • Division has delivered growth in revenue and operating profit, at £9.0m and £1.4m respectively • Successful integration of Searches, acquired in January 2016 • Property market faced disruption following changes to stamp duty and mortgage in
Slide 14: Growth Strategy & Outlook
Growth Strategy & 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: Outlook
Outlook • First full year as a more strategically diversified business operating in aligned legal services markets • Group’s proven track record of responding to change and underlying brand strength leave it well positioned to succeed in the new regulatory landscape • The changes in PI have been pla
Slide 17: Questions
Questions 17
Slide 18: Appendices
Appendices 18
Slide 19: NAHL Group plc – a strategically diversified business
NAHL Group plc – a strategically 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 20: NAHL at a glance
NAHL at a glance Twelve month share price Industry data & sector 350 Current index FTSE AIM All-Share 300 Sector Media 250 Market capitalisation £70.92 million Shares in issue 45.34m 200 Free float 43.36m 150 Last Price Share Price Year High 290.00p 100 Share Price Year Low 118.50p 50 Total 2016 Div