Slide 1: NAHL Group plc Preliminary Results 2015
NAHL Group plc Preliminary Results 2015 22 March 2016 1
Slide 2: Agenda
Agenda • Overview • Financial Performance • Divisional Review • Growth Strategy and Outlook • Questions 2
Slide 3: Overview
Overview 3
Slide 4: 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 5: 2015 Group Highlights
2015 Group Highlights • Robust revenue growth – up 15.7% to £50.7m (2014: £43.8m) • Continued improvement in profitability • Underlying operating profit up 22.9% to £15.6m (2014: £12.7m) • Underlying operating profit margin up 1.8% to 30.8% (2014: 29.0%) • Highly cash generative - operating cash gen
Slide 6: Financial Performance
Financial Performance 6
Slide 7: Income Statement
Income Statement Continued profit growth Group Revenue 50.0 3.5 Year ended Year ended 2.1 £’000 % change 31 Dec 2015 31 Dec 2014 40.0 30.0 £m Revenue 20.0 43.8 45.1 39.7 Personal Injury 45,081 43,848 10.0 Conveyancing+ 3,522 0 - FY2013 FY2014 FY2015 Critical Care+ 2,113 0 Personal Injury Critical Ca
Slide 8: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Robust balance sheet Excellent cash conversion Year ended Year ended Year ended Year ended £’000 31 Dec 2015 31 Dec 2014 £’000 31 Dec 2015 31 Dec 2014 Fixed assets 259 186 Underlying operating profit 15,622 12,713 Goodwill / Intangible assets 67,690 39,897 Working capital
Slide 9: Dividend and EPS
Dividend and EPS Dividend EPS Interim Final Total Year ended Year ended £’000 Dividend Dividend Dividend Pence 31 Dec 2015 31 Dec 2014 Group Basic EPS 25.6 20.6 Dividend per share 6.25p 12.5p 18.75p Group Diluted 25.0 20.2 Total dividends £2,571,875 £5,658,125 £8,230,000 EPS Share price at period en
Slide 10: Divisional Review
Divisional Review 10
Slide 11: NAH – focus on quality
NAH – focus on quality • 2015 results reflect a strong trading performance; PBT of £15.6m (up 8.8%) from revenue of £45.1m (up 2.8%) • Control of volume and focus on smaller number of cost effective, higher quality enquiries has increased profitability and improved enquiry quality • Enquiries mix: c
Slide 12: NAH – proposed regulatory change
NAH – proposed regulatory change Chancellor’s Autumn Statement outlined proposed changes in two areas: • Removal of general damages for “low value” RTA claims involving soft tissue injuries • Increase to the small claims limit (“SCL”) for personal injury claims. May apply to all RTA claims with cons
Slide 13: NAH – adapting to proposed regulatory change
NAH – adapting to proposed regulatory change • NAH has modelled and considered its strategic response to a range of possible outcomes which may impact revenue, profit and possibly cash profile • NAH’s brand recognition, trust and marketing strength leaves it ideally placed to address how small claim
Slide 14: Fitzalan – strong performance since acquisition
Fitzalan – strong performance since acquisition • Strong performance since acquisition in Feb 2015; delivering £0.8m operating profit on £3.5m revenue • Fits with existing strategy of applying marketing, digital and call handling expertise to complementary markets within the broader consumer legal s
Slide 15: Bush & Company – building on market leadership
Bush & Company – building on market leadership • Business has performed well since acquisition in Oct 2015 delivering £0.6m operating profit on revenue of £2.1m • Market leading provider of specialist services in the c£85m serious and catastrophic injury market. Market leader with a share of c10% •
Slide 16: Growth Strategy & Outlook
Growth Strategy & Outlook 16
Slide 17: Group strategic priorities – significant opportunities
Group strategic priorities – significant opportunities Market Panel Product and Targeted development development service acquisitions development Continue to target Determine regulatory Move Bush into lower Consider opportunity higher value cases in outcome in NAH and value claims (£250k - provided
Slide 18: Summary & Outlook
Summary & Outlook • Results in line with expectations • Group has continued to diversify into complementary legal services markets through acquisitions • Operating across a number of highly fragmented markets, giving rise to compelling growth opportunities • Group well positioned to respond to regul
Slide 19: Questions
Questions 19
Slide 20: NAHL at a glance
NAHL at a glance Twelve month share price Industry data & sector 450 Current index FTSE AIM All-Share 400 Sector Media 350 Market capitalisation £88.27 million 300 Shares in issue 45.27m 250 Last Price Free float 42.87m 200 Share Price Year High 425.00p 150 Share Price Year Low 190.00p Total 2015 Di