Slide 1: NAHL Group plc FY Results 2014
www.nahlgrouplc.co.uk NAHL Group plc FY Results 2014 March 2015
Slide 2: Agenda
Agenda 1 • Overview of 2014 • Financial and Operational Performance • Growth strategy • Appendices
Slide 3: Overview of 2014
www.nahlgrouplc.co.uk Overview of 2014
Slide 4: 2014 Highlights – Delivering to Strategy
2014 Highlights – Delivering to Strategy 3 • 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 mark
Slide 5: Brand and marketing: NAH cementing its leadership position
Brand and marketing : NAH cementing its leadership position 4 Online Brand Impressions • NAH remains first choice when searching online 12 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 “Whi
Slide 6: Panel Law Firms – continued evolution of partnerships
Panel Law Firms – continued evolution of partnerships 5 • 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 7: Products & Services – further development, new opportunities
Products & Services – further development, new opportunities 6 } 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 } Rolli
Slide 8: Financial and Operational performance
www.nahlgrouplc.co.uk Financial and Operational performance
Slide 9: Enquiries: continuing growth, improved conversion
Enquiries: continuing growth, improved conversion 8 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 fuelle
Slide 10: Income Statement
Income Statement 9 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 11: Balance sheet and cash flow
Balance sheet and cash flow 10 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 12: Dividend and EPS
Dividend and EPS 11 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 13: Growth strategy
www.nahlgrouplc.co.uk Growth strategy
Slide 14: Acquisition of Fitzalan Partners
Acquisition of Fitzalan Partners 13 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 15: Growth Strategy – Business Opportunities
Growth Strategy – Business Opportunities 14 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 16: Appendices
www.nahlgrouplc.co.uk Appendices
Slide 17: The UK PI litigation market and how we operate
The UK PI litigation market and how we operate 16 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 Med
Slide 18: Products
Products 17 Good product growth with opportunity to develop further Ongoing Products • A.T.E • Cornerstone of no win, no fee • Currently processed by Allianz • Paid via commission when policy is taken by PLF for consumer • Medicals • Provided by Premex & Speed Medical • Dual provision provides oppor
Slide 19: Brand and marketing expertise
Brand and marketing expertise 18 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 leadsHelpline / CMC 85% 64% 34% Insurer Enquiries 29% 68% 39% Solicitors 22% *
Slide 20: Significant shareholders
Significant shareholders 19 Name Holding (%) * Axa Framlington 9.9 Alan Kennedy 9.2 Investec Asset Management 7.8 Samantha Porteous 7.5 SFM UK Management 6.2 Old Mutual Global Investors 6.1 River & Mercantile Asset Management 5.7 Polar Capital Partners 4.6 Artemis Fund Managers Ltd 4.2 Hargreave Hal