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LONDON (Alliance News) - National Accident Helpline owner NAHL Group PLC on Tuesday reported a decrease in profit and revenue for 2018 as it continues its transition due to regulatory pressures.
Shares in the consumer marketing firm were up 12% in midday trading at 100.00 pence each.
In 2018, NAHL's pretax profit decreased 21% to GBP9.8 million from GBP12.4 million in 2017. The company's revenue slipped 5.6% to GBP49.0 million from GBP51.9 million.
NAHL proposed a final dividend of 5.7 pence per share, resulting in a total dividend of 8.9p - a 44% decrease on the 15.9p distributed in 2017.
The company said it is midway through a "significant transition" but Chair Caroline Brown said it is "obvious" to her that the firm has a "realistic and achievable strategic plan in place".
"As we progress through our strategy for the group, we are pleased to have taken significant steps forward in transforming our core Personal Injury business to take advantage of the changed regulatory environment and the opportunities ahead," said Chief Executive Russell Atkinson.
NAHL's Personal Injury unit suffered continued decline in business from its panel of law firms due to forthcoming regulatory changes in the sector.
The Civil Liabilities Bill, passed on December 20, will increase the small claims limit to GBP5,000 for road traffic accident claims and GBP2,000 for all other types of personal injury claims. There also will be a "significant" reduction in compensation available to victims of whiplash injuries. The bill is expected to be implemented in 2020.
The company also attributed "heightened competitor activity" in November and December - resulting in fewer enquiries - as a cause for falling revenue from the Personal Injury unit.
NAHL was granted a licence by the Solicitors Regulation Authority in 2018 to open a wholly-owned law firm, National Accident Law, a key component of its new strategy. This will launch in April.
The company said its Alternative Business Structure strategy developed "encouragingly" in 2018, with its Critical Care and Residential Property unit now making a positive contribution to the overall group.
NAHL's Critical Care unit performed "strongly", with a 15% rise in profit, with "major" contributions from its commercial partnerships with the Spinal Injuries Association and the Child Brain Injuries Trust.
The Residential Property unit was hurt by "by a persistently difficult housing market" but continues to trade profitably.
Atkinson added: "Trading in the early part of the new year has improved, albeit our markets remain competitive. Whilst there remains a great deal to do, the strength of our trusted brands, digital capabilities and talented people gives us confidence for the year ahead."
