NAHL Group (NAH) H1 2026 earnings summary

Executive summary

• H1 continuing-operations revenue rose 5% to £18.3m; underlying operating profit increased 13% to £3.4m and PBT rose 31% to £2.3m.

• Free cash flow grew 43% to £2.2m, while net debt fell 66% to £1.1m at 30 June 2026.

• Consumer Legal Services delivered strong profit growth; Critical Care revenue rose modestly and underlying operating profit was broadly flat.

• Progress continued on the personal injury growth strategy; the proposed Searches UK disposal supports focus on core markets.

Financial highlights

• Revenue was £18.3m, up 5%; gross profit increased 9% to £10.1m and underlying operating profit rose 13% to £3.4m.

• PBT rose 31% to £2.3m; continuing-operations basic EPS increased 30% to 3.5p.

• Profit for the period increased 23% to £1.8m, including £0.1m from discontinued operations.

• Free cash flow increased 43% to £2.2m; cash generated from operations rose 22% to £3.9m.

• H1 exceptional costs included £43k for the proposed Searches UK sale, versus £185k for the prior-year aborted Critical Care disposal.

Outlook and guidance

• Following the £1.85m supplier-dispute settlement, the Board upgraded current-year expectations, with profit and cash generation expected materially above market expectations.

• Net cash is anticipated by end-October 2026, after the expected Searches UK sale and receipt of the settlement.

• H2 NAL settlements, revenue and cash generation are expected to decline, reflecting fewer enquiry placements over the previous two years.

• July–August NAL enquiries rose 5% to 2,583; 3% fewer claims were settled, but settlement cash increased 22% to £1.8m.

• July–August Critical Care activity was mixed: expert-witness reports fell 2% as instructions rose 3%; case-management INA reports fell 1% as instructions rose 28%.