29th Jan 2025 12:13
(Alliance News) - NAHL Group PLC on Wednesday said it expects to report higher pretax profit for 2024 despite a decline in revenue, with the company performing in line with market expectations.
The Kettering, England-based consumer marketing services provider, which focuses on the legal services sector, expects full-year pretax profit to increase 23% to GBP800,000, up from GBP600,000 in 2023.
This figure includes GBP800,000 in amortisation of intangible assets from business acquisitions and GBP600,000 in exceptional costs related to the potential sale of its Critical Care business and restructuring within its Personal Injury division. Excluding these costs, NAHL expects adjusted pretax profit to be around GBP2.2 million, in line with market expectations.
However, revenue is forecast to fall 8% to GBP38.8 million from GBP42.2 million, reflecting a decline in its Personal Injury business.
The group's Critical Care division delivered a "strong performance", with revenue rising 9% to GBP15.9 million from GBP14.6 and operating profit up 10% to GBP4.9 million from GBP4.2 million. Expert witness revenues grew 19%, while Bush & Co Care Solutions reported a 37% revenue increase.
By contrast, the Consumer Legal Services division saw revenue fall to GBP22.9 million from GBP27.6 million, due to a drop in Personal Injury enquiries. NAHL said its National Accident Helpline business struggled with Google search algorithm changes and a highly competitive paid search environment, reducing the number of enquiries generated to 19,744 from 35,643 in 2023.
Despite the challenges, NAHL said cost-cutting measures delivered GBP1.2 million in annual savings, and the cost of acquiring new enquiries fell by 30% by year-end.
NAHL also confirmed it is in exclusive talks to sell its Critical Care unit, Bush & Co., with negotiations progressing to the next stage. The company said there is no certainty a deal will be completed but aims to conclude discussions soon.
Looking ahead, NAHL said its Personal Injury business has stabilised in early 2025, though lead generation remains lower than historical levels.
The company expects to report its full-year results in May.
Shares in NAHL were up 6.7% at 72.85 pence in London on Wednesday afternoon.
By Eva Castanedo, Alliance News reporter
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