NAHL Group (NAH) H1 2024 earnings summary

Executive summary

• H1 revenue fell 7% YoY to £19.4m, while operating profit held at £1.8m; performance was in line with revised expectations despite a challenging Personal Injury market.

• Critical Care delivered double-digit revenue and operating profit growth, while Consumer Legal Services faced weaker Personal Injury lead generation and lower panel placements.

Financial highlights

• Revenue was £19.4m vs £21.0m; operating profit was £1.8m, with a 9.4% margin vs 8.7%.

• PBT was £0.5m vs a £0.0m loss; profit for the period was £0.3m vs a £0.1m loss, and continuing EPS was 0.7p vs -0.1p.

• Operating cash flow was £2.4m, cash conversion 134%, and free cash flow £0.7m vs £1.8m.

• Net debt was £9.0m at 30 June, down 7% from December and 22% YoY; it fell to £8.3m by 31 August.

• Net interest expense fell 21% YoY to £0.4m; operating profit included £0.4m amortisation of business-combination intangibles, fully amortised in 2024.

Outlook and guidance

• The Board remained confident of a full-year outturn in line with market expectations.

• NAH Q3 trading to date was broadly in line with Q2; NAL collected £1.4m in July and August settlements vs £1.0m a year earlier.

• Critical Care expert witness reports issued in July and August were 19% ahead YoY; initial needs assessment reports were broadly in line.

• Bush & Co sale discussions aimed to conclude before year-end; any deal remained conditional and was not guaranteed.