Nahl Group Plc · LSE:NAH
Nahl — H1 2024 Earnings Presentation
30 slides from Nahl's earnings presentation, September 2024
Slide 1: Interim Results 2024
Interim Results 2024 September 2024
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
2024 Interim Results Agenda 1. Highlights 2. Financial Review 3. Business Review 4. Summary 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 2018. Group, havi
Slide 4: Highlights
Highlights
Slide 5: Financial Highlights
Financial Highlights Reduced net debt; remained profitable and cash generative Revenue Profit Before Tax Continuing EPS £19.4m £0.5m 0.7p (H1 2023: £21.0m) (H1 2023: £0.0m) (H1 2023: -0.1p) Cash From Settlements Free Cash Flow Net Debt £4.0m £0.7m -£0.7m to £9.0m at 30 June (H1 2023: £2.7m) (H1 2023
Slide 6: Operational Highlights
Operational Highlights Good progress made in H1 with our strategic objectives • In Consumer Legal Services: - Performance in the Group’s fully integrated law firm, National Accident Law (NAL), continued to improve, growing settlements by 9% more than last year, and cash from settlements by 46% - Inv
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: Financial Review
Financial Review
Slide 9: Financial Performance
Financial Performance Strong H1 earnings growth in spite of PI challenges £m H1 H1 2024 2023 +/- % 2023 • Group revenue of £19.4m (H1 2023: £21.0m) Consumer Legal Services 11.4 13.7 (2.3) -17% 27.6 • Operating profit in line with last year at £1.8m Critical Care 8.0 7.3 0.8 11% 14.6 Revenue 19.4 21.
Slide 10: Cash Generation
Cash Generation Growing free cash flow, reducing net debt £m H1 24 H1 23 +/- % 2023 • Continued to reduce borrowing levels whilst balancing investment in both divisions Personal Injury 1.3 2.8 (1.5) -52% 4.9 Residential Property 0.1 0.2 (0.1) -29% 0.5 • Good levels of cash generation throughout firs
Slide 11: Business Review - Consumer Legal Services
Business Review - Consumer Legal Services
Slide 12: Consumer Legal Services
Consumer Legal Services A leader in personal injury legal services Our Strategy Financial Highlights We are building a sustainable, higher margin business • Revenue decreased by 17% to £11.4m due to by: challenges in lead generation in NAH, while NAL 1. Supporting more accident victims by leveraging
Slide 13: National Accident Helpline
National Accident Helpline Challenging market conditions impact enquiry numbers Number of enquiries -36% yoy • NAH generated 11,304 enquiries, 36% lower than last year 17,932 17,559 • The UK personal injury market contracted further in the Period1 11,304 • The number of road traffic accident (“RTA”)
Slide 14: National Accident Law
National Accident Law 2019 cohort of claims has proven the model, with 163 claims ongoing Cohort value = £3.1m 2,415 new £0.2m enquiries £0.8m £0.9m Revenue Estimates £m £0.7m £3.1m cash settled £3.1m • 1,208 claims won (1,154) £2.3m £0.6m £0.6m • 163 ongoing claims (225) £0.2m £0.0m expected to del
Slide 15: National Accident Law
National Accident Law Delivering for customers; creating value for shareholders • Invested a further 3,072 new enquiries into NAL, estimated to be worth £2.9m in future revenue and cash • Settled 10% more claims in H1 than last year (H1 2023: 1,911 claims settled; H1 2023: 1,738) which realised £4.0
Slide 16: Business Review - Critical Care
Business Review - Critical Care
Slide 17: Critical Care
Critical Care A leading player in the catastrophic injury market Our Strategy Strategic Progress We are growing share in our market by appealing to Growth delivered in all service lines a broader customer base, extending our Expert witness services had another strong half, competencies and speci
Slide 18: Expert Witness
Expert Witness Another impressive half year of growth Number of expert witness reports issued +10% yoy 636 580 • Expert witness services grew revenues by 18% 504 454 • 10% growth in number of reports issued, to a new high of 636 408 reports in the first half • Continued growth in average revenue per
Slide 19: Case Management
Case Management Revenue growth and increased client numbers delivering recurring revenue • Case management revenues 5% higher than H1 2023 Number of INA reports issued; number of ongoing • Number of INA reports issued, many of which go on to become clients ongoing clients, broadly in line with last
Slide 20: Care Solutions
Care Solutions Peace of mind for direct employment and nurse led packages • Bush & Co. Care Solutions grew revenues by 34% Bush & Co. Care Solutions • 28 active ongoing case packages at 30 June 2023, 133% more than 12 months prior with each one generating recurring Employment Care Clinical revenue (
Slide 21: Summary and Outlook
Summary and Outlook
Slide 22: Summary
Summary Performance in line with expectations • Despite the challenges caused by a volatile personal injury market, the Group was profitable and cash generative - As previously guided, revenue was £19.4m, 7% lower than last year and operating profit was in line with the previous year at £1.8m - In C
Slide 23: Outlook
Outlook The Board remains confident in delivering a full year outturn in line with market expectations • In Consumer Legal Services, trading during Q3 to date in NAH was broadly in line with Q2. Cash from settlements in NAL continued to grow, with £1.4m collected in July and August (2023: £1.0m). •
Slide 24: Questions
Questions
Slide 25: Appendices
Appendices
Slide 26: National Accident Law – Claim Processing (2020 cohort)
National Accident Law – Claim Processing Reviewing the performance of the 2020 cohort of claims Cohort value = £4.4m 3,587 new enquiries £0.6m £0.4m Revenue Estimates £m £1.1m £4.1m cash settled £1.1m £4.1m • 1,714 claims won £3.8m £1.0m £0.3m remaining value £0.4m • 335 ongoing claims £0.2m • £0.2m
Slide 27: National Accident Law – Claim Processing (2021 cohort)
National Accident Law – Claim Processing Reviewing the performance of the 2021 cohort of claims Cohort value 8,249 new = £6.5m enquiries £0.5m £0.3m £1.4m Revenue Estimates £m £4.9m cash settled £4.9m £2.1m • 2,873 claims won £6.0m £1.6m remaining value £1.2m • 1,407 ongoing claims £0.1m • £0.1m bil
Slide 28: National Accident Law – Claim Processing (2022 cohort)
National Accident Law – Claim Processing Reviewing the performance of the 2022 cohort of claims Cohort value 8,760 new = £6.3m enquiries £0.4m £0.3m Revenue Estimates £m £1.7m £3.2m £3.2m cash settled • 2,161 claims won £1.1m £5.9m £0.1m £3.1m remaining value £3.0m • 1,952 ongoing claims • £0.1m bil
Slide 29: National Accident Law – Claim Processing (2023 cohort)
National Accident Law – Claim Processing Reviewing the performance of the 2023 cohort of claims Cohort value 8,518 new = £6.6m enquiries £0.0m £0.6m £1.0m £1.6m £1.6m cash settled Revenue Estimates £m £0.2m • 1,641 claims won £6.6m £5.0m remaining value £4.8m • 3,176 ongoing claims • £0.2m billed re
Slide 30: Personal Injury
Personal Injury A flexible, self-funding business model, purpose built to generate shareholder returns across the cycle NAHL Group Plc 2024 Interim Results Presentation 30