NAHL : Final Results Presentation 2023

Building on our foundations, delivering value

Final Results 2023

May 2024

Disclaimer

The information contained in this document ("Presentation") and the presentation made to you verbally has been prepared by NAHL Group PLC (the "Company"). NAHL Group PLC is a UK company quoted on AIM, a market operated by London Stock Exchange plc. This Presentation has not been fully verified and is subject to material updating, revision and further verification and amendment without notice. This Presentation has not been approved by an authorised person in accordance with Section 21 of the Financial Services and Markets Act 2000 (as amended) ("FSMA") and therefore it is being provided for information purposes only.

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Final Results 2023

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2023 Final Results

Agenda

1. Highlights
2. Financial Review
3. Business Review
4. Summary and Outlook
5. Appendices

James Saralis - Group CEO

James is Chief Executive Officer of the Group, which he joined in January 2018. His responsibilities include implementing the strategy agreed by the Board and managing the day-to-day operations of the Group.

Final Results 2023

Chris Higham - Group CFO

Chris is Chief Financial Officer of the Group, having joined in 2006. His responsibilities include management of the finance function and liaising with the Group's investors and banks.

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Highlights

Financial Highlights

Growing revenues and reducing net debt

Revenue

+2%

to £42.2m (2022: £41.4m)

Cash From Settlements

+73%

to £6.0m (2022: £3.5m)

Profit Before Tax

+14%

to £0.65m (2022: £0.57m)

Free Cash Flow

+64%

to £3.6m (2022: £2.2m)1

Continuing EPS

+13%

to 0.9p (2022: 0.8p)

Net Debt 2

-27%

at £9.7m (2022: £13.3m)1

Final Results 2023

1. Alternative performance measures are defined in CFO Report
2. As at 31 December

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Operational Highlights

On track to deliver significant growth as our business matures

• NAHL continued to make strong progress in 2023, standing the Group in good stead for future success
• In Consumer Legal Services:
• • National Accident Law (NAL) continued to rapidly scale and settled 92% more claims than in 2022
  • Investment in NAL continued, with new enquiries worth c. £6.6m being added in the year. This contributed to growth in the value of its book of ongoing claims of 24%
  • National Accident Helpline generated 2% more enquiries than prior year, and grew market share by 8%
• In Critical Care:
• • Double digit growth in revenues and operating profit margin increased by 400bps to 30.0%
  • Cash from operations in Bush & Co. increased by 61%
  • Expert witness services had a record year, growing revenues by 37%
  • Bush Care Solutions (launched in 2021) delivered revenue growth of 39% to £0.5m

Final Results 2023

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NAHL Group plc

A leader in the consumer legal services and catastrophic injury markets

Consumer Legal Services

What we do

Delivering marketing services, personal injury claim processing and property searches to UK consumers and businesses

• Highly productive marketing engine, powered by the sector's most trusted brand, National Accident Helpline
• Integrated claim processing engine, National Accident Law

Our strategy

Create a higher margin, integrated law firm, underpinned by a flexible placement model

Critical Care

What we do

Delivering a range of specialist services to claimants and defendants in the catastrophic and serious injury market

• A valued and essential service
• Bush & Co - the standout brand in a consolidating market

Our strategy

Broaden our customer base, extend our competencies and specialisms and be more efficient through the use of technology

How we do it	Passionate	Driven	•	Values driven culture
	Unified	Curious	•	Award-winning employee
		engagement

• Highly experienced and trusted leadership team
• 280 employees (31 December)

Final Results 2023

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Financial Review

Financial Performance

Growing revenues and continuing profits

£m	2023	2022	+/-	%
Consumer Legal Services	27.6	28.3	(0.7)	-2%
Critical Care	14.6	13.2	1.5	11%
Revenue	42.2	41.4	0.8	2%
Consumer Legal Services	2.8	4.2	(1.4)	-33%
Critical Care	4.4	3.4	1.0	29%
Shared Services	(1.9)	(1.7)	(0.2)	12%
Other items	(1.2)	(1.1)	(0.0)	4%
Operating profit	4.1	4.8	(0.6)	-13%
Operating profit margin	9.8%	11.5%	-1.7%
Non-controlling interests	(2.5)	(3.6)	1.0	-29%
Net interest	(1.0)	(0.6)	(0.3)	52%
Profit before tax	0.6	0.6	0.1	14%
Taxation	(0.3)	(0.2)	(0.1)	44%
Profit for the period	0.4	0.4	-	-
Continuing EPS	0.9p	0.8p	0.1p	13%
(Roundings exist)

• Group revenue increased by 2% to £42.2m and +4% on continuing operations
• Operating profit higher than anticipated at £4.1m
• • Includes £0.9m amortisation of intangibles relating to business combinations (fully amortised in 2024)
  • Net of £3.0m investment of new enquiries into
    NAL
• 29% reduction in profits paid away to non-controlling interests
• • Net interest increased due to higher interest rates
• Continuing EPS increased 13%

Final Results 2023

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Financial Performance

Growing revenues in National Accident Law and Bush & Co.

			+48%				+38%
		-1%		-21%	-14%	-2%	-19%	-78%
£m
Revenue			Consumer Legal Services +1%	Critical Care +11%
£41.4m								£42.2m
	2022	Panel and	National	Joint venture	Searches UK	Case	Expert witness Other Critical	Discontinued	2023
		Products	Accident Law	partnerships		management	Care	Operations

• Consumer Legal Services revenue +1%
• • 48% growth in NAL as settlements increase - signs of a maturing business
  • 21% reduction in revenues derived through joint venture partnerships following the strategic decision to move more work into NAL to create a more profitable business
  • Within Residential Property, Homeward Legal, which was loss- making, was disposed of in April 2023
• Critical Care revenue +11%
• • 38% increase in revenue from Expert Witness

Final Results 2023

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