23rd Sep 2014 09:06
LONDON (Alliance News) - Consumer marketing business NAHL Group PLC Tuesday, reported a fall in profit and revenue for the first half, after UK legal aid legislation affected its results.
The company, which operates under the National Accident Helpline brand, posted pretax profit GBP5.7 million for the six months to June 30, down from GBP12.8 million a year earlier, as total revenue slipped to GBP22.1 million from GBP30.3 million.
In the previous year, GBP9.4 million in revenue was generated in relation to commissions received for an "after the event" insurance product, which did not reoccur. This product was no longer available in the same form following the implementation of Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO) by the UK government.
During the year the company also demerged its PPI Claimline divisions and its parent company Seebeck 62 Ltd via a capital reduction of GBP1.5 million.
NAHL which listed on AIM in May, said group enquiries increased 11% compared with the first half 2013 with similar growth in the higher value categories - non-road traffic accident and medical negligence. NAHL said this was driven by increasing awareness of the rights and options available to consumers who have been impacted.
It also said revenue growth from enquiry generation rose 5.9% on the first half 2013.
Looking ahead, the company said its performance in the second half to date, driven by continuing high levels of enquires as well as an increasingly "efficient" marketing strategy.
"We expect a positive out turn for the year," the company said.
Despite its woes the company declared an interim dividend of 5.0 pence. NAHL did not pay a dividend in the previous year.
NAHL shares were quoted up 3.4% at 198.00 pence Tuesday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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