Nahl Group Plc · LSE:NAH
Nahl — H1 2022 Earnings Presentation
27 slides from Nahl's earnings presentation, September 2022
Slide 1: Creating opportunity, ready for the future – Interim Results
Creating opportunity, ready for the future Interim Results September 2022
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: 2022 Interim Results Agenda and Presentation team
2022 Interim Results Agenda Presentation team 1. Highlights 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 4: 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 5: Financial Highlights
Financial Highlights Delivering in line with expectations Revenue Operating profit Profit before tax £20.7m H1 2021: £19.5m £2.3m H1 2021: £2.5m £0.1m H1 2021: £0.6m Basic earnings per share Free cash flow1 Net debt1 at 30 Jun 2022 0.0p H1 2021: 0.8p £1.0m H1 2021: £1.4m £14.5m 31 Dec 2021: £15.5m 1
Slide 6: Operational Highlights
Operational Highlights Building a more sustainable and profitable business • Performance in the first half was in line with our expectations • In Consumer Legal Services: • 4% revenue growth, driven by 14% growth from Personal Injury • Consistent market share gains in subdued markets - National Acci
Slide 7: Financial Review
Financial Review
Slide 8: Financial Performance
Financial Performance Investing for future growth First half £m 2022 2021 +/- % 2021 • Revenue growth of 6% to £20.7m (H1 2021: £19.5m) Consumer Legal Services 14.1 13.6 0.5 3.7% 26.6 • Market share gains in both divisions Critical Care 6.7 6.0 0.7 12.1% 12.3 Revenue 20.7 19.5 1.2 6.3% 38.9 • Strong
Slide 9: Cash Flow and Net Debt
Cash Flow and Net Debt Accelerating cash collection in NAL Free cash flow • £1.0m of FCF generated in H1 2022, including £1.5m of cash generated from settled claims in NAL, up 50% from 2021 (H1 £3.8m 2021: £1.0m) £2.2m • £1.9m cash received from JV partnerships, an increase of £1.4m £1.0m 46% reflec
Slide 10: Business Updates – Consumer Legal Services
Business Updates – Consumer Legal Services
Slide 11: Consumer Legal Services
Consumer Legal Services A leader in personal injury legal services Our Strategy Financial Results Create a higher margin, integrated law firm, underpinned by a • Revenue increased 4% to £14.1m (H1 2021: £13.6m) flexible placement model. • Operating profit fell by 14% to £2.1m (H1 2021: £2.4m) having
Slide 12: National Accident Helpline
National Accident Helpline Growing volumes in a subdued market • Market remains subdued due to reduced accident numbers and lack of stimulation • COVID-19 related behavioural changes reduced accident numbers in non-RTA market • The Civil Liability Act 2018 removed significant value from the RTA mark
Slide 13: National Accident Helpline
National Accident Helpline Growing enquiry volumes through our market-leading brand • 27% more enquiries generated than last year • Stopped processing tariff-only RTA claims in February 2022 to focus resources on higher value claims • Mix of enquiries continues to favour non-RTA (employers’, public
Slide 14: National Accident Law
National Accident Law Processing more enquiries in our consumer-focused law firm • 61% more enquiries placed into National Accident Law in the period, estimated to be worth £2.9m in future revenue • Demand continues to be strong from our panel of third-party law firms • £1.5m of cash from settlement
Slide 15: National Accident Law
National Accident Law Growing revenues and cash receipts since launch in 2019 • Total value of all cohorts since inception increased 25% in H1 to £14.9m • 2,850 claims won to date, generating £5.1m of cash from settlements in NAL • 626 claims settled in H1, generating £1.5m in cash – 50% more cash t
Slide 16: Business Updates – Critical Care
Business Updates – Critical Care
Slide 17: Critical Care
Critical Care A leading player in the catastrophic injury market Our Strategy Financial Results Grow share in our market by appealing to a broader customer • Revenue increased 12% to £6.7m (H1 2021: £6.0m) base, extending our competencies and specialisms and to be • Operating profit 2% lower at £1.6
Slide 18: Critical Care
Critical Care Developed our capability and pipeline of work Expert Witness reports issued +11% Expert witness performed strongly • 20% growth in revenues in H1 • 11% growth in reports issued; 11% growth in new instructions 454 507 431 466 504 545 408 419 371 323 • Working with 115 expert witness ass
Slide 19: Summary and Outlook
Summary and Outlook
Slide 20: Summary
Summary Continued progress on strategic objectives; trading in line with expectations • Despite the well-documented macroeconomic uncertainty, the performance of the Group in the first half of the year was in line with our expectations • In Consumer Legal Services: • Consistent market share gains in
Slide 21: Outlook
Outlook Despite macroeconomic uncertainty, the Group continues to trade in line with market expectations and is on track to meet full year forecasts • In Consumer Legal Services: • In July and August, National Accident Helpline grew personal injury enquiry numbers by 4% compared to last year • The b
Slide 22: Questions
Questions
Slide 23: Appendices
Appendices
Slide 24: Personal Injury
Personal Injury A flexible, self-funding business model, purpose built to generate shareholder returns across the cycle NAHL Group Plc 2022 Interim Results Presentation 24
Slide 25: National Accident Law – Claim Processing (2019 cohort)
National Accident Law – Claim Processing Reviewing the performance of the 2019 cohort of claims 2,415 new Cohort value enquiries = £2.5m Revenue Estimates £m £0.2m £0.9m £2.0m £2.0m cash settled £2.3m • 1,009 claims won £0.7m £0.3m +£0.1m £0.5m £0.5m remaining value • 396 ongoing claims New Enquirie
Slide 26: National Accident Law – Claim Processing (2020 cohort)
National Accident Law – Claim Processing Reviewing the performance of the 2020 cohort of claims 3,587 new Cohort value enquiries = £3.6m £0.4m Revenue Estimates £m £1.1m £2.2m £2.2m cash settled £3.8m £0.6m • 1,149 claims won -£0.2m £1.4m £2.0m remaining value • 1,138 ongoing claims New Enquiries Ca
Slide 27: National Accident Law – Claim Processing (2021 cohort)
National Accident Law – Claim Processing Reviewing the performance of the 2021 cohort of claims 8,249 new Cohort value enquiries = £5.7m £0.3m £0.6m £0.9m cash settled Revenue Estimates £m £0.9m -£0.3m • 674 claims won £6.0m £4.8m £4.8m remaining value • 4,735 ongoing claims • £1.2m accrued revenue