Nahl Group Plc · LSE:NAH
Nahl — FY2023 Earnings Presentation
33 slides from Nahl's earnings presentation, May 2024
Slide 1: Building on our foundations, delivering value
Building on our foundations, delivering value Final Results 2023 May 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
2023 Final 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, having
Slide 4: Highlights
Highlights
Slide 5: Financial Highlights
Financial Highlights Growing revenues and reducing net debt Revenue Profit Before Tax Continuing EPS +2% +14% +13% to £42.2m (2022: £41.4m) to £0.65m (2022: £0.57m) to 0.9p (2022: 0.8p) Cash From Settlements Free Cash Flow Net Debt 2 +73% +64% -27% to £6.0m (2022: £3.5m) to £3.6m (2022: £2.2m)1 at £
Slide 6: Operational Highlights
Operational Highlights On track to deliver significant growth as our business matures • NAHL continued to make strong progress in 2023, standing the Group in good stead for future success • In Consumer Legal Services: - National Accident Law (NAL) continued to rapidly scale and settled 92% more clai
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 Growing revenues and continuing profits £m 2023 2022 +/- % • Group revenue increased by 2% to £42.2m and +4% on Consumer Legal Services 27.6 28.3 (0.7) -2% continuing operations Critical Care 14.6 13.2 1.5 11% Revenue 42.2 41.4 0.8 2% • Operating profit higher than anticipated
Slide 10: Financial Performance
Financial Performance Growing revenues in National Accident Law and Bush & Co. • Consumer Legal Services revenue +1% +48% +38% - 48% growth in NAL as settlements increase – signs of a maturing -21% -14% -2% -19% -78% -1% business - 21% reduction in revenues derived Revenue £m Consumer Legal Services
Slide 11: Financial Performance
Financial Performance Growing profitability with reduced ‘leakage’ to non-controlling interests • ‘Net profit’ increased 34% to £1.6m after 2022 £m 2023 £m deducting non-controlling interests Operating profit 4.8 Operating profit 4.1 • Consumer Legal Services made £0.3m net Non-controlling interest
Slide 12: Cash Generation
Cash Generation Growing free cash flow, reducing net debt £m 2023 2022 +/- % • Continued to reduce borrowing levels whilst balancing Personal Injury 4.9 5.1 (0.2) -3% investment in both divisions Residential Property 0.5 0.3 0.2 67% Consumer Legal Services 5.4 5.4 0.0 0% • Strong levels of cash gene
Slide 13: Business Review - Consumer Legal Services
Business Review - Consumer Legal Services
Slide 14: 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 • Continuing revenue grew by 1% to £27.3m. by: Personal Injury revenue increased by 3% 1. Supporting more accident victims by leveraging the • Op
Slide 15: National Accident Helpline
National Accident Helpline Supporting more accident victims by leveraging our market-leading brand Number of enquiries +2% yoy • National Accident Helpline increased market share by 8.0%, supported by TV and social advertising. RTA share grew to 34,905 35,643 highest level since Government’s whiplas
Slide 16: National Accident Law
National Accident Law Growing the value of personal injury enquiries processed in NAL • 8,518 new high-quality enquiries placed into NAL, estimated to be worth £6.6m in future revenue and cash (2022: £5.9m) • 3,633 claims settled in 2023, 92% more than prior year (2022: 1,894); 9,983 ongoing claims
Slide 17: National Accident Law – Claim Processing
National Accident Law – Claim Processing 2019 cohort of claims has proven the model, with 183 claims ongoing Cohort value = £3.1m £0.2m 2,415 new enquiries £0.8m Revenue Estimates £m £0.9m £0.7m £2.9m £2.9m cash settled • 1,186 claims won (1,085) £2.3m £0.6m £0.6m £0.2m remaining value £0.1m • 183 o
Slide 18: Personal Injury
Personal Injury Funding growth through our agile and scalable placement model • Personal Injury generated £1.6m net cash flow, after deduction of drawings Cash generated by joint-venture law firms +33% paid to LLP members (2022: £1.8m) £4.4m • NAL collected £6.0m cash from settlements, 73% higher th
Slide 19: Business Review - Critical Care
Business Review - Critical Care
Slide 20: 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 Operating profit margin +400bps to 30.0% a broader customer base, extending our Expert witness services had its best year ever competencies and spec
Slide 21: Expert Witness
Expert Witness A record year of further growth • Expert witness services grew revenues by 37% Number of expert witness reports issued +17% yoy • 17% growth in number of reports issued, to a new high of 1,136 1,136 reports in the year 885 974 731 • Growth in average revenue per report and more follow
Slide 22: Case Management
Case Management Robust client numbers generating recurring revenue • Case management revenues 2% lower than last year Number of INA reports issued +2% yoy; number of ongoing clients +4% • 2% growth in number of INA reports issued, many of which go on to become ongoing clients 1,354 1,406 1,208 1,222
Slide 23: Care Solutions
Care Solutions Peace of mind for direct employment and nurse led packages • Bush & Co. Care Solutions grew revenues by 39% Bush & Co. Care Solutions • Launched in 2021. Revenues growing at 32% pa (CAGR) Employment Care Clinical • 5 specialist Care Managers Support Management Governance • 19 active o
Slide 24: Summary and Outlook
Summary and Outlook
Slide 25: Summary
Summary Building on strong foundations to scale the business and outperform the market • We are growing revenues and earnings across the Group - In Consumer Legal Services, we are growing the value of claims processed through NAL, which will lead to higher future profits and cash - As previously ann
Slide 26: Outlook
Outlook Remain on track to deliver against our strategy in both of our divisions in 2024 • In the first quarter of 2024: - NAL settled 26% more claims than in the equivalent period last year and generated £2.0m of cash from settlements, 67% more than prior year. - In National Accident Helpline, we p
Slide 27: Questions
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Slide 28: Appendices
Appendices
Slide 29: National Accident Law – Claim Processing
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 £2.9m £2.9m cash settled • 1,186 claims won (1,085) £2.3m £0.6m £0.6m £0.0m £0.2m remaining value £0.1m • 183 ongoing
Slide 30: National Accident Law – Claim Processing
National Accident Law – Claim Processing Reviewing the performance of the 2020 cohort of claims 3,587 new Cohort value enquiries = £4.4m £0.6m £0.4m Revenue Estimates £m £1.1m £3.7m cash settled £3.7m • 1,518 claims won £1.1m £3.8m £1.0m £0.7m remaining value £0.1m • 454 ongoing claims £0.6m • £0.1m
Slide 31: National Accident Law – Claim Processing
National Accident Law – Claim Processing Reviewing the performance of the 2021 cohort of claims 8,249 new Cohort value enquiries £0.5m = £6.5m £0.3m £1.4m £3.7m cash settled Revenue Estimates £m £3.7m • 2,078 claims won £2.1m £6.0m £0.2m £2.8m remaining value £2.6m • 1,999 ongoing claims • £0.2m bil
Slide 32: National Accident Law – Claim Processing
National Accident Law – Claim Processing Reviewing the performance of the 2022 cohort of claims 8,760 new Cohort value enquiries £0.4m = £6.3m £0.3m £2m cash settled Revenue Estimates £m £1.7m £2.0m • 1,055 claims won £0.2m £5.9m £4.1m £4.3m remaining value • 1,999 ongoing claims • £0.2m billed reve
Slide 33: Personal Injury
Personal Injury A flexible, self-funding business model, purpose built to generate shareholder returns across the cycle NAHL Group Plc 2023 Final Results Presentation 33