28th Sep 2021 10:45
(Alliance News) - Claims management company NAHL Group PLC on Tuesday downgraded its forecasts for 2021, as personal injury enquiries are growing slower than expected.
Shares were down 15% to 47.50 pence in London on Tuesday morning.
In results for the first half of 2021, NAHL reported revenue of GBP19.5 million, down 3.6% year-on-year from GBP20.2 million. But the firm swung to a pretax profit of GBP581,000, from a loss of GBP409,000.
NAHL processes personal injury and residential property claims through its own law firms, as well as providing marketing to other claims managers, through brands including National Accident Helpline.
The pandemic suppressed earnings in the period, the company said, as there were fewer accidents while people stayed at home.
In the second half, personal injury enquiries have grown at a slower rate than expected.
Meanwhile, NAHL's strategy to grow its personal injury business by processing more claims in-house will generate higher margins in the medium term, but require higher spending in the short term, reducing profit.
Those factors will result in revenue and underlying operating profit being lower than previously expected, as well as lower than last year's figures.
In 2020, NAHL made GBP40.9 million revenue - down 20% from 2019 - and a pretax loss of GBP223,000.
"We remain cautious about the speed and timing of the recovery and cognisant of the risk of further disruption to our markets should the government impose further restrictions over the winter months," the company said.
Chief Executive James Saralis said: "We have continued to make progress with our strategy during the first half of the year, notwithstanding the impact of the pandemic which is still being felt across our markets.
"National Accident Law processed 80% more enquiries in the first half compared with the prior year, as we invest to scale the business in order to generate higher levels of profitability in the future.
"In our Critical Care division we are focused on the growth opportunities ahead and are progressing plans to expand into adjacent sectors and build market share."
By Ivan Edwards; [email protected]
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