Nahl Group Plc · LSE:NAH
Nahl — FY2021 Earnings Presentation
24 slides from Nahl's earnings presentation, March 2022
Slide 1: Creating opportunity, ready for the future
Creating opportunity, ready for the future 2021 Final Results March 2022
Slide 2: Agenda and Presentation team
2021 Final Results Agenda Presentation team 1. 2021 Summary James Saralis – Group CEO James is Chief Executive Officer of the 2. Financial Review Group, which he joined in January 2018. His responsibilities include implementing the strategy agreed by the Board and managing 3. Business Updates the da
Slide 3: Building a sustainable business
Building a sustainable business We built a stronger business in 2021, despite COVID-19 headwinds 1. We advanced our strategy with 2. We developed our fully integrated 3. We progressed our recovery in carefully managed investment law firm Critical Care ✓ Reduced net debt ✓ Increased enquiry numbers p
Slide 4: Financial Review
Financial Review
Slide 5: Financial highlights
2021 Final Results Financial highlights Revenue Underlying operating profit1 Profit before tax £38.9m 2020: £40.9m £4.2m 2020: £5.7m £0.2m 2020: loss of £0.2m Underlying EPS1 Free cash flow1 Net debt1 at 31 Dec 0.3p 2020: 1.9p £0.8m 2020: £6.1m £15.5m 31 Dec 2020: £16.3m 1 Alternative performance me
Slide 6: Financial Performance
Financial Performance Recovery delayed by COVID-19 and investment to drive future growth £m 2021 2020 +/- % • Revenue of £38.9m (2020: £40.9m) constrained by reduction in Consumer Legal Services 26.6 29.6 (3.0) -10.1% personal injury accidents due to COVID-19 restrictions and the Critical Care 12.3
Slide 7: Cash Flow and Net Debt
Cash Flow and Net Debt Advancing strategy, increasing investment, managing debt • In 2020, liquidity was prioritised in response to Free cash flow Allocation of COVID-19. enquiries to £6.1m NAL increased • In 2021, the Group followed its strategy, and by 130% increased the allocation of new enquirie
Slide 8: Business Updates – Consumer Legal Services
Business Updates – Consumer Legal Services
Slide 9: Consumer Legal Services: Executing on our strategy
Consumer Legal Services Executing on our strategy Strategic Progress Our strategy is to create a higher margin, integrated law firm, underpinned by our agile ✓ National Accident Helpline continues to be the sector’s Most Trusted Brand1. and scalable placement model. ✓ Improvements in organic search
Slide 10: Personal Injury – Enquiry Generation
Personal Injury – Enquiry Generation Growth in enquiry numbers suppressed by COVID-19 Personal Injury enquiry numbers and Google mobility data2 since COVID-19 outbreak • Personal injury market remained 110% 4,000 depressed in 2021, due to impact of 100% COVID-19 restrictions and CLA 3,500 reforms. 9
Slide 11: Personal Injury - Placement
Personal Injury - Placement Enquiry placement model flexed for higher margin business • In 2021, the Group allocated 130% more enquiries into NAL, 73% fewer to joint-venture firms and Personal Injury enquiry allocation maintained the allocation to third party panel firms. Allocation to NAL scaled as
Slide 12: National Accident Law – 2019 cohort of claims
National Accident Law – Claim Processing Reviewing the performance of the 2019 cohort of claims 2,415 new Cohort value enquiries = £2.4m Revenue Estimates £m £0.2m £0.9m £1.7m £1.7m cash settled £2.3m • 923 claims won £0.7m +£0.1m £0.7m £0.7m remaining value • 481 ongoing claims New Enquiries Cash C
Slide 13: National Accident Law – 2020 cohort of claims
National Accident Law – Claim Processing Reviewing the performance of the 2020 cohort of claims 3,587 new Cohort value enquiries = £3.5m £0.4m Revenue Estimates £m £1.1m £1.5m £1.5m cash settled • 950 claims won £3.8m -£0.2m -£0.3m £2.0m £2.0m remaining value • 1,351 ongoing claims • £0.5m accrued (
Slide 14: National Accident Law – Growing revenues and cash receipts since launch
National Accident Law – Claim Processing Growing revenues and cash receipts since launch in 2019 Total value since inception = £11.9m 8,249 new enquiries Revenue Estimates £m £2.1m £3.5m £3.5m cash settled • 2,223 claims won £6.0m -£0.1m £1.3m £3.8m £8.4m £8.4m remaining value • 7,918 ongoing claims
Slide 15: Business Updates – Critical Care
Business Updates – Critical Care
Slide 16: Critical Care: A leading player in catastrophic injury market
Critical Care A leading player in the catastrophic injury market Good progress on strategic objectives in 2021 Our strategy in Bush & Co is to ✓ Invested in marketing and business development, grow share in our market by now comprising seven people, and won Marketing Campaign of the Year at the 2021
Slide 17: Critical Care: Recovered volumes
Critical Care Recovered volumes but average revenues still impacted by COVID-19 Revenue increased 9% to £12.3m (2020: £11.3m) Underlying operating profit reduced 8% to £3.3m (2020: £3.6m) • Expert Witness revenues +17% on prior year. • Increased investment in new business development • Case Manageme
Slide 18: Summary and Outlook
Summary and Outlook
Slide 19: Summary: 2021 - a year of strategic progress
Summary 2021 - a year of strategic progress • The Group continued to manage net debt and remain profitable, despite the continued difficulties presented by the COVID-19 pandemic o Developed our fully integrated law firm, increasing enquiries placed into NAL by 130% o Reduced reliance on joint ventur
Slide 20: 2022 Outlook
2022 Outlook Progress has continued into 2022 • Personal Injury enquiry numbers are growing o Enquiry numbers in the first two months are 42% ahead of the same period last year o Average daily enquiry run rate improved each month since December 2021 o We expect UK mobility levels to improve further,
Slide 21: Appendices
Appendices
Slide 22: Consumer Legal Services: A leader in personal injury legal services
Consumer Legal Services A leader in personal injury legal services A flexible, self-funding business model, purpose built to generate shareholder Our Businesses returns across the cycle Highly productive marketing engine, powered by the sector’s most trusted brand, National Accident Helpline Placeme
Slide 23: Personal Injury
Personal Injury A flexible, self-funding business model, purpose built to generate shareholder returns across the cycle NAHL Group Plc 2021 Full year results presentation 23
Slide 24: Bush & Co: A trusted brand with strong fundamentals
Bush & Co A trusted brand underpinned by strong fundamentals and growth opportunities A valued and essential service • Bush, with a strong heritage and brand, supports individuals who have been seriously injured Our Awards • A market with intrinsic, underlying demand for services The standout brand