Nahl Group Plc · LSE:NAH
Nahl — H1 2023 Earnings Presentation
30 slides from Nahl's earnings presentation, 2023
Slide 1: Our continued journey to growth – Interim Results 2023
Our continued journey to growth Interim Results 2023
Slide 2: Disclaimer
Disclaimer The information contained in this document (“Presentation”) and the presentation made to you verbally has been prepared by NAHL Group PLC (the “Company”). NAHL Group PLC is a UK company quoted on AIM, a market operated by London Stock Exchange plc. This Presentation has not been fully ver
Slide 3: Agenda
2023 Interim Results Agenda 1. Highlights 2. Financial Review 3. Business Updates 4. Summary, Current Trading and Outlook 5. Appendices James Saralis – Group CEO Chris Higham– Group CFO James is Chief Executive Officer of the Chris is Chief Financial Officer of the Group, which he joined in January
Slide 4: Highlights
Highlights 4
Slide 5: Financial Highlights
Financial Highlights Trading in line with expectations Revenue Operating profit Profit before tax +1% -19% £0.0m to £21.0m (H1 2022: £20.7m) to £1.8m (H1 2022: £2.3m) (H1 2022: £0.1m) Basic EPS1 Free cash flow Net debt -0.1p +74% -£1.8m to £11.5m at 30 June (H1 2022: -0.2p) to £1.8m (H1 2022: £1.0m)
Slide 6: Operational Highlights
Operational Highlights Building maturity and momentum in Consumer Legal Services and Critical Care • In Consumer Legal Services: • The Group’s market-leading brand, National Accident Helpline, continued to grow market share in a contracting personal injury claims market, generating 17,559 new enquir
Slide 7: NAHL Group plc
NAHL Group plc A leader in the consumer legal services and catastrophic injury markets Consumer Legal Services Critical Care What we do What we do Delivering marketing services, personal injury claim processing and Delivering a range of specialist services to claimants and property searches to UK co
Slide 8: Delivering our Strategy for Growth
Delivering our Strategy for Growth Consumer Legal Services Critical Care Group 1. Support more accident victims 1. Broaden customer base 1. Reduce net debt • New personal injury enquiry numbers • Instructions for expert witness reports • 270% operating cash conversion in line with last year; market
Slide 9: Financial Review
Financial Review 9
Slide 10: Financial Performance
Financial Performance Showing maturity and building momentum £m H1 23 H1 22 +/- % 2022 • Group revenue increased by 1% with strong growth in Consumer Legal Services 13.7 14.1 (0.4) -2.7% 28.3 Critical Care. In Consumer Legal Services, the previously Critical Care 7.3 6.7 0.6 8.9% 13.1 announced disp
Slide 11: Financial Performance
Financial Performance Growing revenues in National Accident Law and Bush & Co. • Consumer Legal Services revenue -3% • 71% growth in NAL as settlements increase – signs of a maturing +71.3% business +8.9% -18.8% • 19% reduction in revenues derived Revenue £m -2.3% -34.0% through joint venture partne
Slide 12: Financial Performance
Financial Performance Growing profitability with reduced ‘leakage’ to non-controlling interests • After deducting non-controlling interests, ‘net profit’ increased 44% to £0.5m (H1 2022: £0.3m) H1 2022 £m H1 2023 £m Operating profit 2.3 Operating profit 1.8 • Consumer Legal Services made £(0.3)m net
Slide 13: Cash Generation
Cash Generation Accelerating cash collection; reducing net debt; investing for growth £m H1 23 H1 22 +/- % 2022 • Strong levels of cash generation throughout the year, with free cash flow +74% at £1.8m (H1 2022: £1.0m) Personal Injury 2.8 2.2 0.6 24.6% 4.7 Residential Property 0.2 0.5 (0.3) -56.9% 0
Slide 14: Business Review – Consumer Legal Services
Business Review – Consumer Legal Services 14
Slide 15: Personal Injury Market
Personal Injury Market The opportunity to unlock a large latent demand in a seemingly stagnant market Trailing 12 month Non RTA claims volume Claim volumes remain lower than before the pandemic and fell 30 COVID-19 Pandemic slightly yoy: 25 '000 claims registered • Non-RTA volumes in H1 2023 were 3%
Slide 16: National Accident Helpline
National Accident Helpline Our market-leading brand is building share in a challenging environment Enquiry Generation Market Share 16.7% 17.2% 17.2% 17.1% 17.1% 16.7% Specialist: 27% 15.7% 16.1% 15.6% 16.1% Non-RTA2 (H1 2022: 29%) H1: 17,559 enquiries (2022: 17,6301) RTA1: 25% Non-RTA: 48% 1.5% 1.5%
Slide 17: National Accident Law
National Accident Law Accelerating settlements; growing future profits • 27% growth in value of all cohorts since inception to £23.2m (31 December 2022: £18.2m) • 5,853 claims won to date, realising £9.7m of cash from settlements for NAL • 1,738 claims settled in the period, generating £2.7m in cash
Slide 18: Business Review – Critical Care
Business Review – Critical Care 18
Slide 19: Case Management and Care
Case Management and Care Numbers of ongoing clients growing, generating recurring revenue • Case management revenues 2% lower than last year 5% growth in INA reports issued and 7% growth in ongoing • 5% growth in number of INA reports issued, many of which go on clients to become ongoing clients 600
Slide 20: Expert Witness
Expert Witness Continued growth in expert witness services Number of expert witness reports issued (+15% yoy) • Expert witness services grew revenues by 34% 580 • 15% growth in number of reports issued, along with growth in 454 504 470 average revenue per report because of a favourable mix and 408 4
Slide 21: Summary and Outlook
Summary and Outlook 21
Slide 22: Summary
Summary The Group has delivered growth and strengthened its balance sheet, whilst continuing to carefully invest for the medium-term • Group revenues increased 1% yoy, with strong performance in NAL and Critical Care • Profit before tax was broadly breakeven, in line with management’s expectations,
Slide 23: Current Trading and Outlook
Current Trading and Outlook The Board expects the Group to meet market expectations for the full year as trading gathers momentum • In Consumer Legal Services, in July and August: • National Accident Helpline delivered 9% growth in personal injury enquiry numbers • NAL collected £1m of cash from set
Slide 24: Questions
Questions 24
Slide 25: Appendix
Appendix 25
Slide 26: National Accident Law – Claim Processing (2019 cohort)
National Accident Law – Claim Processing Reviewing the performance of the 2019 cohort of claims Cohort value = £3.1m £0.2m 2,415 new enquiries £0.8m Revenue Estimates £m £0.9m £0.7m £2.7m £2.7m cash settled • 1,154 claims won £2.3m £0.6m £0.4m £0.1m £0.3m £0.4m remaining value • 225 ongoing claims N
Slide 27: National Accident Law – Claim Processing (2020 cohort)
National Accident Law – Claim Processing Reviewing the performance of the 2020 cohort of claims Cohort value 3,587 new = £4.4m enquiries £0.6m £0.4m Revenue Estimates £m £1.1m £3.2m cash settled £3.2m • 1,518 claims won £1.1m £3.8m £0.5m £0.1m £1.2m remaining value £1.1m • 627 ongoing claims • £0.3m
Slide 28: National Accident Law – Claim Processing (2021 cohort)
National Accident Law – Claim Processing Reviewing the performance of the 2021 cohort of claims 8,249 new Cohort value enquiries £0.2m = £6.2m £0.3m £2.8m cash settled Revenue Estimates £m £1.4m £2.8m • 2,078 claims won £1.1m £0.2m £6.0m £3.4m remaining value £3.2m • 2,807 ongoing claims • £0.9m acc
Slide 29: National Accident Law – Claim Processing (2022 cohort)
National Accident Law – Claim Processing Reviewing the performance of the 2022 cohort of claims 8,760 new Cohort value enquiries £0.2m = £6.2m £1.0m cash settled £0.3m £0.6m £1.0m • 1,055 claims won Revenue Estimates £m £0.2m £5.9m £5.0m £5.1m remaining value • 3,863 ongoing claims • £1.1m accrued r
Slide 30: Personal Injury
Personal Injury A flexible, self-funding business model, purpose built to generate shareholder returns across the cycle Interim Results 2023 30