NAHL Group PLC Pre-Close Trading Update (9454U)

TIDMNAH

RNS Number : 9454U

NAHL Group PLC

18 July 2018

18 July 2018

NAHL Group PLC

("NAHL" or the "Group")

Pre-Close Trading Update

NAHL (AIM: NAH), the leading UK consumer marketing business focused on the UK legal services market, is today providing a trading update for the first half of its current financial year, covering the six months to 30 June 2018.

The Group has performed in line with the Board's earnings expectations.

The Group's Personal Injury division has continued to deliver good enquiry volumes in an evolving market and has made progress in developing its Alternative Business Structures (ABSs). ABS arrangements provide the Group with an ownership interest in a company providing legal services and enable NAHL to participate in that venture and take a share of profit from work processed by the ABS. The first ABS that was established in July 2017, with NewLaw, has experienced encouraging levels of closed cases and damages awarded to injured consumers with associated profits in line with our expectations. The second ABS, that was established in November 2017 with Lyons Davidson, continues to build scale. The Group's third ABS, which is currently in the planning phase, is progressing well and management plans an operational launch in H1 2019.

As we manage these variables and the placement of enquiries in our business we are seeing a slightly different mix of profit to that originally envisaged. We expect to see modestly lower levels of EBITDA offset by lower levels of minority interest, with no overall impact on 2018 earnings.

The Group's Critical Care division has had a good first half and is trading in line with the Board's expectations. The team has worked hard to deliver new commercial contracts with two charities and an insurer, opening up new relationships with additional law firms.

The Residential Property division continues to trade in a challenging housing market, which has been well documented, but remains focused on margin and is well placed to capitalise on future opportunities.

The Group continues to invest in cases and developing its ABS strategy in Personal Injury and can confirm that net debt remains in line with the Board's expectations.

NAHL will announce its results for the six months ended 30 June 2018 on 18 September 2018.

Russell Atkinson, CEO of NAHL, commented:

"The Group has delivered a good performance in the first half, as we continue to transition our business model through 2018 and 2019 and I am pleased that earnings are in line with our plans. I welcome the progress made following the launch of our ABS structures, which will provide us with greater flexibility in the way we process enquiries. The long anticipated regulatory changes in PI are now progressing through parliament. The Government announced on 16 July 2018 that they anticipate these changes taking effect from April 2020.

"Critical Care has performed well and although Residential Property continues to face a challenging market backdrop, both divisions are contributing meaningfully to the Group's performance."

For further information please call:

 
NAHL Group PLC                 via FTI Consulting 
 Russell Atkinson (CEO)         Tel: +44 (0) 20 
 James Saralis (CFO)            3727 1000 
finnCap Ltd (NOMAD & Broker)   Tel: +44 (0) 207 
 Julian Blunt                   220 0500 
 James Thompson 
 Andrew Burdis 
FTI Consulting (Financial PR)  Tel: +44 (0) 20 
 Alex Beagley                   3727 1000 
 James Styles 
 Laura Saraby 
 

Notes to Editors

NAHL Group plc is a leading UK consumer marketing business focused on the UK legal services market. The Group comprises three companies: National Accident Helpline (NAH), Fitzalan Partners (Fitzalan) and Bush & Company Rehabilitation (Bush). NAH provides outsourced marketing services in the personal injury market, Fitzalan, which includes Searches UK a leading conveyancing search provider, provides marketing services in the property market and Bush provides a range of specialist services in the catastrophic injury market.

More information is available at www.nahlgroupplc.co.uk and www.national-accident-helpline.co.uk.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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July 18, 2018 02:00 ET (06:00 GMT)