Slide 1: NAHL Group plc Interim Results Presentation
NAHL Group plc Interim Results Presentation 23 September 2014
Slide 2: Disclaimer
Disclaimer 1 This document is an investor presentation which has been prepared by, and is the sole responsibility of, NAHL Group Limited (to become NAHL Group Plc) (the "Company"). It has been prepared in connection with the proposed placing (the "Placing") of ordinary shares in the capital of the C
Slide 3: Overview
Overview 2 Executive Directors The Business The leading UK consumer business in the UK Personal Injury market • A £3bn market with one million claims per annum o NAHL estimated share 4.4% • NAHL is the most trusted brand; most recognised and most searched online • £200m investment in marketing over
Slide 4: 2014 H1 Highlights
2014 H1 Highlights 3 • Good revenue growth in 2014 H1 – 6% overall to £22.1m (2013 H1: £20.8m) • 2014 H1 Operating Profit – £6.1m (2013: £4.8m) – up 25.8% • 2014 H1 Operating Profit margin – 27% (2013: 23%) – up 4 percentage points • Market consolidation and increasingly efficient digital marketing
Slide 5: The UK PI litigation market and how we operate
The UK PI litigation market and how we operate 4 Segmental breakdown of the market1 NAHL Group marketing spend c.£23m per annum • Circa 1 million claims per annum • Lower value road traffic accident (RTA) represents 76% of the Consumer (claimant) market 2% 22% RTA 4 Non-RTA Consumer contacts NAHL Me
Slide 6: Brand and marketing expertise
Brand and marketing expertise 5 Most trusted brand1 Direct response consumer marketing • Research shows that many consumers are reluctant to approach solicitors in the UK personal injury litigation market1 • Experienced at driving brand awareness and growth in lead generation Gross leads • A trusted
Slide 7: 2014 H1: Enquiries and Conversion
2014 H1: Enquiries and Conversion 6 • Good growth in enquiries and conversion reaching optimal levels Enquiries Six months Six months Twelve • Enquiries increased by 10.6% compared to H1 % change to to months to Enquiries H1 2014 vs 31 Dec 30 June 30 June 2013 with similar growth in the higher value
Slide 8: 2014 H1 Income Statement
2014 H1 Income Statement 7 Continued profit growth % change Twelve months Six months to Six months to £’000 H1 2014 vs to 30 June 2014 30 June 2013* 31 Dec 2013* H1 2013 Revenue Solicitor Income 5.9% 19,425 18,336 34,423 Products 6.0% 2,665 2,513 5,294 Total 6.0% 22,090 20,849 39,717 Cost of sales (
Slide 9: 2014 H1 Balance sheet and cash flow
2014 H1 Balance sheet and cash flow 8 Robust balance sheet Excellent cash conversion Six months to Six months to Twelve months to Six months to Six months to Twelve months to £’000 £’000 30 June 2014 30 June 2013 31 Dec 2013 30 June 2014 30 June 2013 31 Dec 2013 Fixed assets 268 580 371 Underlying o
Slide 10: Progressive dividend policy
Progressive dividend policy 9 • Declared Interim dividend of 5.0p per share payable on 31 October 2014 to those on the register on 3 October 2014 • Will continue to pursue progressive dividend policy based on: • The anticipated future underlying earnings of the Group • Its ongoing capital requiremen
Slide 11: Growth Strategy
Growth Strategy 10 Goals Enablers Positioned in high growth segments of PI market Market share development Market consolidation is taking place – as the market leader, we are benefitting Data call transfer and enhanced capture continues to Profit enhancement improve conversion rates for PLFs
Slide 12: Summary & Outlook
Summary & Outlook 11 • Strong 2014 H1 financial performance with continued high cash generation and a robust balance sheet • Maiden Interim dividend of 5.0p per share • The well recognised, trusted brand and differentiated marketing has delivered good enquiry growth • Focus remains on the high growt
Slide 13: Appendices
Appendices
Slide 14: Significant shareholdings
Significant shareholdings 13 Top NAHL Group Shareholders (September’14) Lock-in Lloyds Development Capital 15.02% 6m + 6m Inflexion 15.02% 6m + 6m Alan Kennedy 9.15% 12m + 12m Sam Porteous 7.54% 12m + 12m AXA Investment Managers UK Limited 8.93% Investec Asset Management Limited 8.02% Old Mutual Ass
Slide 15: Lead origination
Lead origination 14 NAHL never cold-calls or cold-texts: all leads are in-bound in response to marketing CONSUMERS Insurers / Clean leads Enquiries PLFs (Gross leads) defendants Consumer lead origination and validation Referral of enquiries to specialist panel of PI law firms • NAHL originates and v
Slide 16: The consumer's journey
The consumer’s journey 15 A process continually reviewed for improvements to efficiency and customer service The process: 1. Gross leads are all contacts into NAH’s call centre. Generated through tailored marketing activity (online, TV, affinity and directories) 2. NAH remove the ‘noise’ of customer
Slide 17: The UK PI market – key participants
The UK PI market – key participants 16 NAHL is the largest and most successful ‘enquiry originator’ in the UK Marketing collectives Consumer legal firms with captive Type Consumer legal firms “enquiry originators” marketing brand Direct response Consumer facing legal firms that take work from Descri
Slide 18: The UK PI market – barriers to entry
The UK PI market – barriers to entry 17 High barriers to entry prevent others from entering NAHL’s core market • Consumers more likely to identify with a brand they are • Post LASPO, collaboration with panel firms has become familiar with and believe is able to handle their enquiry increasingly impo