NAHL Group (NAH) H2 2024 earnings summary

Executive summary

• FY2024 revenue fell 8% to £38.8m amid a challenging personal injury market; underlying PBT rose 113% to £1.4m from £0.6m.

• Free cash flow was £2.6m and net debt fell 27% to £7.1m; Q1 2025 trading reduced net debt to £6.0m at 31 March.

• Critical Care growth and stronger NAL settlement cash partly offset weaker Consumer Legal Services revenue; discussions continued on a potential Bush & Co sale.

Financial highlights

• Revenue was £38.8m, down 8% YoY; underlying operating profit was £3.9m versus £4.1m, with margin of 10.2% versus 9.8%.

• Underlying PBT rose to £1.4m from £0.6m; basic underlying EPS increased to 2.5p from 0.8p.

• Statutory operating loss was £36.5m and statutory loss before tax £39.1m, including a £39.9m non-cash goodwill impairment.

• Free cash flow was £2.6m versus £3.6m; operating cash conversion was 173%, cash generated from operations £6.8m, and net debt £7.1m versus £9.7m.

Outlook and guidance

• 2025 inquiry-volume expectations were reset lower; Q1 generated over 3,500 new enquiries, while average acquisition cost fell 22% from Q4 and 34% from its September 2024 peak.

• In Q1, 37% of new enquiries were placed into NAL versus 26% a year earlier; 950 claims settled, generating £2.8m cash.

• Q1 Expert Witness reports issued rose 10% YoY; Case Management INAs fell 9% YoY but were 7% above Q4.

• Management considered a ~£3m year-end net-debt reduction achievable, conditional in part on Bush & Co remaining in the business for the full year.