Nahl Group Plc · LSE:NAH
Nahl — Investor Presentation (December 2016)
15 slides from Nahl's investor presentation, December 2016
Slide 1: NAHL Group plc Investor Presentation
NAHL Group plc Investor Presentation December 2016
Slide 2: NAHL Group plc – a diversified business
NAHL Group plc – a diversified business • NAHL Group plc is a leading UK consumer marketing and services business focused on the UK consumer legal services market • The Group comprises three divisions: • Personal Injury via NAH which provides outsourced marketing services and products to law firms •
Slide 3: 2016 H1 Highlights – Performance In Line With Expectations
2016 H1 Highlights – Performance In Line With Expectations • Revenue up 1.3% to £25.8m (2015 H1: £25.4m) • Underlying operating profit up 24.5% to £8.8m (2015 H1: £7.0m) • Underlying operating profit margin up from 27.7% to 34.0% • Profit before tax up 17.1% to £7.5m (2015 H1: £6.4m) • Excellent cas
Slide 4: Divisional Highlights
Divisional Highlights PI: • Enquiries volumes deliberately reduced with focus on higher value case types • Demand stabilised; Improved margins; Division right sized for lower enquiry volumes • Partnership strategy focused towards larger firms Critical Care: • Strong contribution from division • Cont
Slide 5: Personal Injury division - MoJ Consultation
Personal Injury division - MoJ Consultation November 2015 • In 2015 Autumn Statement, former Chancellor George Osborne announced intention to reform PI sector: o Intention to remove the right to general damages for minor soft tissue injury claims o And raise the upper limit for the small claims cour
Slide 6: Personal Injury division - Implications
Personal Injury division - Implications • No change to FY2016 forecasts • Further 2017 investment required as well as deferment of profit and cash flow o Board anticipates £4.0m deferment in P.I 2017 Operating Profit o Cases processed under these alternative arrangements are expected to settle on av
Slide 7: Personal Injury division – Well-placed to Adapt to Changes
Personal Injury division – Well-placed to Adapt to Changes • PI predominantly focused away from lower value RTA claims; around 76% of core enquiries relate to non-RTA outside the scope of the soft injury changes • Proven track record of being highly innovative around changes in regulation • Group op
Slide 8: The Group is diversified – other divisions making significant contributions
The Group is diversified – other divisions making significant contributions Conveyancing • Division moves towards ‘one-stop shop’ model for B2B as well as B2C • Changing consumer habits for procuring legal services creates opportunities • Continued focus on new commercial opportunities: o New custom
Slide 9: Group Strategic Priorities
Group Strategic Priorities Market Panel Product and Targeted development development service acquisitions development Target higher value PI processing via Regulatory change Opportunities from cases in PI & benefit ABS, outsourcing gives opportunity to consolidation across and/or joint venture broad
Slide 10: Questions
Questions
Slide 11: Appendices
Appendices
Slide 12: Income Statement
Income Statement Good profit growth £m Group Revenue Twelve months to 31 30 Six months to Six months to December 25 £’000 % change 30 June 2016 30 June 2015 2015 20 15 Revenue 10 Personal Injury 15,864 23,913 45,081 5 Conveyancing+ 4,665 1,498 3,522 0 H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 Critical
Slide 13: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Robust balance sheet Continued excellent cash conversion Twelve Twelve months to 31 Six months to Six months to months to 31 Six months Six months to December £’000 30 June 2016 30 June 2015 Dec 2015 £’000 to June 2016 30 June 2015 2015 Total fixed assets 69,481 44,315 67
Slide 14: Dividend and EPS
Dividend and EPS Progressive dividend EPS growth Twelve Interim Interim months to 31 Dividend Dividend Total Dividend Six months to Six months to December 2016 2015 2015 Pence 30 June 2016 30 June 2015 2015 Dividend per share 6.35p 6.25p 18.75p Group Basic 13.2p 12.5p 25.6p EPS Total dividends £2,87
Slide 15: NAHL At a Glance
NAHL At a Glance Twelve month share price Industry data & sector 450 400 Current index FTSE AIM All-Share 350 Sector Media 300 250 Market capitalisation £62.24 million 200 Shares in issue 45.35m 150 Last Price 100 Free float 43.37m 50 Share Price Year High 290.00p 0 Share Price Year Low 137.00p Tota