18th Sep 2018 11:15
LONDON (Alliance News) - NAHL Group PLC on Tuesday reported flat interim profit and revenue, while the company has reduced its payout "in light of investment plans" as it responds to changing market conditions.
In the six months ended June, NAHL posted a pretax profit of GBP5.3 million, flat on the year before. The consumer marketing company's revenue in the first half was GBP24.9 million, also the same as the previous year.
NAHL declared an interim dividend of 3.2 pence per share, down from 5.3p the year before. The company said a "more prudent" dividend policy will be adopted "in light of investment plans".
The Personal Injury division performed in line with the company's plan in the first half as revenue increased 4.3% to GBP15.5 million. The division's operating profit decreased 14% to GBP4.6 million as a result of later profit recognition and a GBP600,000 enquiry origination cost related to the company's second alternative business structure.
NAHL's Personal Injury division will be launching a wholly owned small claims ready law firm in the first half of 2019 to combat regulatory changes to the industry. This will cost about GBP4 million, but NAHL said this will change its "financial profile" as profit recognition and cash settlement will now be deferred until case settlement.
The company expects the move to "materially enhance" profit and cash flow, likely from 2021.
Looking ahead, the company is expecting its earnings for the full year to be in line with expectations.
In 2017, the company's pretax profit was GBP12.4 million. NAHL's revenue rose to GBP51.0 million from the GBP49.4 million recorded in 2016.
Chief Executive Officer Russell Atkinson said: "The government's reforms will have no bearing on the number of accidents that occur but it is clear there is an opportunity for a new type of law firm to help consumers with genuine claims to obtain access to justice. National Accident Helpline is well placed to seize this opportunity.
"We have been encouraged by the performance of our two joint venture alternative business structure law firms and are excited about the launch of our third, wholly owned law firm in the first half of 2019."
Shares in NAHL were down 4.3% Monday at 115.58 pence each.
Related Shares:
Nahl Group