NAHL Group (NAH) H2 2025 earnings summary

Executive summary

• FY2025 revenue rose 3% to £40.0m; underlying operating profit increased 85% to £7.3m and underlying PBT rose 260% to £5.0m.

• Free cash flow rose 51% to £3.9m, reducing year-end net debt 55% to £3.2m.

• Q1 2026 revenue was 3% ahead YoY and net debt fell to £2.2m; lower expected claim settlements may constrain cash flow for the rest of 2026.

Financial highlights

• Statutory operating profit was £6.7m versus a £36.5m loss; profit for the period was £3.3m versus a £39.3m loss in 2024.

• Underlying EPS rose to 8.0p from 2.5p; underlying operating profit margin increased to 18.2% from 10.2%.

• Cash generated from operations rose 19% to £8.1m; operating cash conversion was 111%, versus 173% in 2024.

• Exceptional costs were £0.6m, relating primarily to the potential Bush & Co disposal process and management restructuring.

• Year-end net debt fell from £7.1m to £3.2m, a ten-year low; it had peaked at £21m in December 2019.

Outlook and guidance

• Q1 2026 revenue was 3% ahead YoY, free cash flow was £1.0m and net debt stood at £2.2m at 31 March.

• Lower National Accident Law settlements are expected to reduce free cash flow for the remainder of 2026 as lower claim volumes placed over the prior two years reach settlement.

• Q1 National Accident Helpline enquiries rose 13% to 3,983; acquisition cost was ~10% above historical norms, while CPI remained within 10% of historical levels.

• Critical Care instructions across services grew 18% in Q1 versus Q4 2025; initiatives include marketing efficiency, website re-platforming and new services.