NAHL Group ends year in line with expectations
By Josh White
Date: Wednesday 29 Jan 2025
(Sharecast News) - NAHL Group said in an update on Wednesday that trading for the 2024 financial year was in line with expectations, with revenue expected to be about £38.8m, down 8% from the prior year due to a planned reduction in personal injury-related revenue.
The AIM-traded firm forecast underlying operating profit of £3.9m, reflecting exceptional costs of £0.6m related to a potential disposal of the critical care business and a restructuring of the personal injury division.
Despite those costs, profit before tax was expected to have risen 23% to £0.8m.
The company said it continued to generate strong cash flow, with cash conversion exceeding 170%.
As a result, net debt was reduced to £7.1m by year-end, ahead of market expectations and down from £9.7 million a year earlier.
In the consumer legal services division, revenue was expected to be £22.9m, with operating profit of £2m.
National Accident Law (NAL), the company's in-house law firm, processed fewer new enquiries than the prior year but increased cash generation by 29% to £8.5m.
National Accident Helpline (NAH) meanwhile faced challenges due to changes in Google's search algorithms and industry consolidation, leading to a decline in lead volumes.
NAHL said its management implemented marketing and cost-efficiency measures, reducing customer acquisition costs by 30% in the second half and achieving £1.2 in annualised savings.
The Searches UK residential property business saw a strong year, with revenue growth of 28% and operating profit doubling to £0.4m.
NAHL's critical care division, Bush & Co, delivered revenue growth of 9% to £15.9m and a 10% increase in operating profit to £4.9m.
The business saw strong growth in expert witness services, with report volumes rising 18%.
Case management revenues were slightly lower, but Bush & Co Care Solutions expanded by 37%.
NAHL confirmed it was in exclusive discussions with a potential buyer for Bush & Co, with due diligence progressing.
While there was no certainty of a transaction, the board said it aimed to conclude discussions as soon as possible.
Looking ahead, NAHL said personal injury lead generation had stabilised at lower levels in early 2025, as the group continued to trade in line with market expectations.
It said it would announce its final results for 2024 in May.
At 1332 GMT, shares in NAHL Group were up 7.32% at 73.25p.
Reporting by Josh White for Sharecast.com.
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