NAHL Group (NAH) Trading update summary

Group performance

• FY24 revenue expected at ~£38.8m, down 8% YoY from £42.2m, reflecting anticipated lower Personal Injury revenue; in line with market expectations.

• Underlying operating profit expected at ~£3.9m after £0.6m exceptional costs: £0.4m linked to a potential Critical Care disposal and £0.2m to Personal Injury restructuring.

• Statutory PBT expected to rise 23% to £0.8m; adjusted PBT expected at ~£2.2m after excluding ~£0.8m acquisition-related amortisation and £0.6m exceptional costs.

• Cash conversion exceeded 170%; year-end net debt was £7.1m, 27% below the £9.7m prior-year comparator and ahead of £7.9m market expectations.

Consumer legal services

• Revenue expected at ~£22.9m versus £27.6m and underlying operating profit at ~£2.0m versus £2.8m, mainly due to fewer Personal Injury enquiries placed with panel firms.

• National Accident Law received 5,892 new enquiries, estimated to represent £5.2m of future mature revenue and cash; settlement cash rose 29% YoY to £8.5m.

• National Accident Helpline generated 19,744 enquiries versus 35,643 in 2023 amid search algorithm changes, paid-search competition and lower panel demand; acquisition cost fell ~30% from its September peak by year-end.

• Cost initiatives delivered £1.2m of annualised savings; Searches UK revenue grew 28% and operating profit rose to £0.4m from £0.2m.

Critical care and strategic update

• Bush & Co. revenue expected at ~£15.9m, up 9% YoY, and operating profit at ~£4.9m, up 10%.

• Expert witness revenue grew 19% on 18% higher report volumes; Bush & Co. Care Solutions revenue grew 37%, while case management revenue was marginally lower.

• Exclusive discussions and due diligence with a potential Bush & Co. buyer advanced to the next stage; completion, terms and timing remain uncertain.