Nahl Group Plc · LSE:NAH
Nahl — FY2022 Earnings Presentation
29 slides from Nahl's earnings presentation, March 2023
Slide 1: Our journey to growth – Final Results 2022
Our journey to growth Final Results 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 Final Results Agenda
2022 Final Results Agenda 1. Highlights 2. Financial Review 3. Business Updates 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 4
Slide 5: Financial Highlights
Financial Highlights Achieving our goals and returning to growth Revenue Operating profit Profit before tax +6% +14% +£0.4m to £41.4m (2021: £38.9m) to £4.8m (2021: £4.2m) to £0.6m (2021: £0.2m) Basic EPS Free cash flow Net debt +167% +159% -14% to 0.8p (2021: 0.3p) to £2.2m (2021: £0.8m)1 to £13.3m
Slide 6: Operational Highlights
Operational Highlights Building a more sustainable and profitable business • Both the Consumer Legal Services and Critical Care divisions generated growth and advanced their strategies in the year • In Consumer Legal Services: • National Accident Helpline returned to TV advertising, generated 9% mor
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: Review of our Progress
Review of our Progress On track to deliver our growth ambitions Revenue (+6% yoy) ✓ Completed transformation in Personal Injury, returning £41.4 m Consumer the business to profit and cash generation £40.9 m £38.9 m Legal Services ✓ Working capital investment to scale business complete. Strong future
Slide 9: Financial Review
Financial Review 9
Slide 10: Financial Performance
Financial Performance Building momentum in 2022 £m 2022 2021 +/- % • Group revenue increased by 6% following growth in both Consumer Legal Services 28.3 26.6 1.7 6.3% divisions Critical Care 13.1 12.3 0.8 6.4% • Operating profit grew 14% in line with recently upgraded Revenue 41.4 38.9 2.5 6.4% mark
Slide 11: Cash Generation
Cash Generation Accelerating cash collection in NAL; reducing net debt £m 2022 2021 +/- % Personal Injury 5.1 3.5 1.6 45.3% • Strong levels of cash generation throughout the year, Residential Property 0.3 0.3 0.0 4.4% with free cash flow +159% at £2.2m (2021: £0.8m) Consumer Legal Services 5.4 3.8 1
Slide 12: Business Review – Consumer Legal Services
Business Review – Consumer Legal Services 12
Slide 13: Consumer Legal Services
Consumer Legal Services A leader in personal injury legal services Our Strategy Financial Highlights We aim to develop a sustainable, higher margin business by: • Revenue increased 6% to £28.3m 1. Growing the number of accident victims we can support by • Operating profit increased by 12% to £4.2m l
Slide 14: Personal Injury Market
Personal Injury Market Claim numbers remain subdued but significant opportunity awaits a firm who can stimulate the market Non-RTA Volume, by Quarter 2018 - 2022 40 '000 claims registered Claim volumes remain lower than before the pandemic 30 COVID-19 Pandemic • Non-RTA volumes in 2022 were 69% of 2
Slide 15: National Accident Helpline
National Accident Helpline Consistently growing volumes and market share since the pandemic • Generated 34,905 personal injury enquiries in 2022, 9% more Non-RTA Market Share - Trailing 12 Months 2 than prior year 16.8% 16.4% 16.5% • Continue to generate strong mix of claims (51% non-RTA 15.7% (empl
Slide 16: National Accident Law
National Accident Law Winning more settlements; growing the value of its claims book • Total value of all cohorts since inception increased 51% in the year to £18.2m • 4,115 claims won to date, generating £7.0m of cash from settlements in NAL • 1,894 claims settled in the year, generating £3.5m in c
Slide 17: National Accident Law – 2019 cohort of claims
National Accident Law – Claim Processing Reviewing the performance of the 2019 cohort of claims Cohort value = £2.6m 2,415 new enquiries Revenue Estimates £m £0.2m £0.9m £2.3m £2.3m cash settled £2.3m • 1,085 claims won £0.7m £0.6m +£0.3m £0.3m £0.1m remaining value • 293 ongoing claims New Enquirie
Slide 18: 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 = £3.9m £0.4m Revenue Estimates £m £1.1m £2.7m £2.7m cash settled • 1,330 claims won £3.8m £1.1m £0.2m £1.3m £1.3m remaining value • 891 ongoing claims New Enquiries Cash
Slide 19: National Accident Law – 2021 cohort of claims
National Accident Law – Claim Processing Reviewing the performance of the 2021 cohort of claims 8,249 new Cohort value enquiries = £5.7m £0.3m Revenue Estimates £m £1.4m £1.7m £1.7m cash settled • 1,358 claims won -£0.2m £6.0m £4.1m £4.1m remaining value • 3,759 ongoing claims • £1.3m accrued/billed
Slide 20: Business Review – Critical Care
Business Review – Critical Care 20
Slide 21: Critical Care
Critical Care A leading player in the catastrophic injury market Our Strategy Strategic Progress Grow share in our market by appealing to a broader customer ✓ Recruited and trained 61 new associates, including 14 base, extending our competencies and specialisms and to be experts in child and young p
Slide 22: Case Management and Care
Case Management and Care Numbers of ongoing clients growing, generating recurring revenue Number of INA report instructions • 3% growth in revenues from case management (+14% yoy) • 5% growth in number of INA reports issued, many of which go on 490 557 464 to become ongoing clients • 11% growth in n
Slide 23: Expert Witness
Expert Witness Another year of strong performance • Expert witness services grew revenues by 14% Number of expert witness report instructions (+7% yoy) • 10% growth in number of reports issued, along with growth in average revenue per report because of a favourable mix and 973 1,044 more follow up w
Slide 24: Summary and Outlook
Summary and Outlook 24
Slide 25: Summary
Summary In subdued markets, we delivered our financial goals and returned to growth • The Group strengthened its financial position, reducing net debt to £13.3m (2022: £15.5m) • Group revenues increased by 6% and operating profits by 14% and we continued to invest for the future • In Consumer Legal
Slide 26: Outlook
Outlook The Group is well placed to continue its growth and cash generation • In Consumer Legal Services, in the first two months of 2023: • National Accident Helpline grew like-for-like1 personal injury enquiry numbers by 3% compared to last year • Increased advertising spend to try to win further
Slide 27: Questions
Questions 27
Slide 28: Appendix
Appendix 28
Slide 29: Personal Injury
Personal Injury A flexible, self-funding business model, purpose built to generate shareholder returns across the cycle NAHL Group Plc 2022 Final Results Presentation 29