Nahl Share Discussion Threads

[masurenguy] 21/3/2017 07:39

Current PER of 5.9 and yield of 12%!

Final Results

NAHL, the leading UK consumer marketing business focused on the UK legal services market, announces its Final Results for the year ended 31 December 2016.

Financial Highlights

-- Underlying revenue declined 2.6% to GBP49.4m (2015: GBP50.7m)
-- Underlying operating profit up 15.1% to GBP18.0m (2015: GBP15.6m) -- Underlying operating profit margin increased by 5.6 percentage points to 36.4% (2015: 30.8%)
-- Profit before tax increased 13.3% to GBP15.8m (2015: GBP14.0m)
-- Cash generation of 79.7% (2015: 97.4%)
-- Adjusted net debt of GBP8.2m at year end (GBP8.3m at 31 December 2015)
-- Basic earnings per share of 27.0p (2015: 25.6p)
-- Recommended final dividend of 12.7p, increasing the total dividend for the year by 1.6% to 19.05p (2015: 18.75p)

Operational Highlights

-- First full year as a more strategically diversified business operating in aligned legal services markets
-- Continued focus on sourcing high quality enquiries in Personal Injury (PI) division -- Accelerated investment in PI cases under new commercial and structural arrangements in light of regulatory changes
-- Strong contribution from Critical Care division which has continued to trade ahead of plan
-- Solid revenue and profit growth in Residential Property division despite challenging market backdrop

Russell Atkinson, CEO of NAHL, commented: "2016 saw the Group make continued progress as a diversified business, with all three of our operating divisions contributing meaningfully to a solid full year performance. Our Critical Care division benefited from the investment made in the business development function and management team, growing its market share. Against a challenging market backdrop, the Residential Property business also saw revenue and profits grow thanks to its broadened service offering. In a more challenging year for our Personal Injury (PI) division, we delivered a resilient trading performance. As part of the Group's long term planning since the Government's consultation was first announced in 2015, we took the strategic decision to invest in a proportion of our enquiries through different commercial and structural arrangements. We have a clear strategy in place to develop our business model while our proven track record of responding to regulatory change and underlying brand strength leaves the PI division well positioned to succeed in the new landscape. We have started 2017 on plan and believe that our continued evolution into aligned legal services areas, strong balance sheet and management experience will enable the Group to navigate the future with confidence."

[basem1] 21/3/2017 07:26

Impressive figures given the uncertain backdrop. The main negative is the further contraction of profits in the PI division in 2017 leading to uncertainty going forward. The Searches acquisition was extremely impressive for £2.1m generating £0.6m profit (bought on a PE of 3.5 ) albeit only a very small percentage of the overall business. It does demonstrate that management have the capability of doing excellent deals. I'd be a buyer round this level.

[qs99] 21/3/2017 07:09

thoughts? 12p final divi is massive IMO on a £1.60 SP!?! DYOR

[smallcapinvestor1] 14/3/2017 08:04

This statement doesn't read well but in fact it is nothing new and is priced in already. It's just confirmation of the previously announced strategy to adjust to the new landscape.

[opodio] 14/3/2017 07:58

uncertainty in the short to medium term is what they say

[opodio] 14/3/2017 07:57

Nasty looking news

[qs99] 14/3/2017 07:26

doesn't seem all doom and gloom IMO?

[basem1] 14/3/2017 07:12

A small drop ??

[qs99] 10/3/2017 16:14

agreed, one way or another!

[masurenguy] 10/3/2017 16:13

The outlook statement, when the results are announced on Tuesday week, could have a quite significant impact on the price momentum here.

[qs99] 10/3/2017 15:22

nice move up

[qs99] 06/3/2017 13:38

just moving ahead of 21st March, RNS about results being out...IMO anything half positive about recent government consultation and trading elsewhere in business and this should re-trace through £2...IMO and DYOR etc

[essential] 06/3/2017 08:25

No not in scsw - just looking technically very strong for a run up to the 200mda

[basem1] 06/3/2017 08:05

Tipped somewhere ?? Maybe SCSW ???

[essential] 03/3/2017 20:05

It's a bullish chart formation

[basem1] 03/3/2017 17:14

Essential, what do you mean by the "flag" TIA.

[essential] 03/3/2017 16:17

Bought into these today after watching for the flag to form. Technically looking strong and ready to push onwards.

[ali47fish] 01/3/2017 14:34

what is happening in this board? no one has posted since 23 july 15?

[topvest] 27/2/2017 20:04

Its good news for NAHL and bad news for insurers and customers in my view. A pretty stupid decision though to use a negative discount rate. The methodology is clearly flawed. The insurance industry and customers are very unhappy. Chance of a U-turn I suspect as its a stupid result. Lower the discount if you want, but negative... beyond stupidity.

[wjccghcc] 27/2/2017 18:57

That's what I thought - bought a few at 149p.

[parvez] 27/2/2017 16:12

further reading....

[parvez] 27/2/2017 16:10

small, I believe you are right..............

What is the Ogden rate?

Courts award lump-sum damages to people suffering personal injury based on a discount rate set in 2001 of 2.5%. The discount rate reduces the compensation injured parties receive to account for income they receive from investing their compensation.

In the current state of investment markets, that figure is unrealistically high, and potentially means claimants are receiving less money than they need to cover the cost of care or loss of future earnings.

Setting the rate to -0.75% means claimants will receive significantly more money than before.

[smallcapinvestor1] 27/2/2017 15:00

If this discount rate change increases the value of settlements I would have thought that would be good for nah, but I may well be missing something.

[qs99] 27/2/2017 12:23

looks like initial panic over and being marked up? Views?

[loglorry1] 27/2/2017 11:34

S&G had a terrible update too.