Last checked at 23 Dec 2019 07:00
This announcement is deemed to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014
23 December 2019
NAHL Group PLC
("NAHL" or the "Group")
ABS and Trading Update
NAHL (AIM: NAH), the leading UK consumer marketing and services business focused on the UK legal services market, today provides an update regarding its second joint venture ABS, National Law Associates LLP, trading as National Law Partners ("NLP") and an update on trading for the year ending 31 December 2019.
ABS Update
The Board is pleased with continued progress and delivery from the Group's ABS strategy. The first and largest ABS, Your Law LLP, continues to perform well and management are encouraged by the early results from its wholly owned ABS, National Accident Law.
Termination of Partnership
The Group has today reached an agreement to terminate its relationship in respect of NLP, with effect from 2 January 2020.
As part of this agreement the Group will receive £5m over the next three years in payment for historic panel enquiries while registering a one-off provision amounting to £1.16m in the current financial year. This settlement avoids a protracted dispute and the prospect of complex and time-consuming litigation between the parties.
Trading Update
Underlying trading in the Personal Injury division is expected to perform marginally ahead of Board expectations and Critical Care remains on target. However, in the second half of 2019, the residential property market has deteriorated further and we now expect the division to make a modest loss in 2019. As a result, excluding the aforementioned provision, underlying earnings* for the year are now anticipated to be between 5% and 10% below Board expectations. Despite this, the Group anticipates full year net debt to be broadly in line with plan.
* Underlying earnings is based on profit attributable to shareholders of NAHL (i.e. excluding profits attributable to non-controlling interests) before the deduction of non-underlying costs.
For further information please call:
NAHL Group plc Russell Atkinson (CEO) James Saralis (CFO)
| via FTI Consulting Tel: +44 (0) 20 3727 1000 |
finnCap Ltd (NOMAD & Broker) Julian Blunt / James Thompson (Corporate Finance) Andrew Burdis (Corporate Broking)
| Tel: +44 (0) 20 7220 0500 |
FTI Consulting (Financial PR) Alex Beagley James Styles Sam Macpherson
| Tel: +44 (0) 20 3727 1000 |
Notes to Editors
NAHL Group plc (AIM: NAH) is a leader in the Consumer Legal Services ("CLS") market. The Group provides services and products to individuals and businesses in the CLS market through its three divisions:
·; Personal Injury provides outsourced marketing services to law firms through National Accident Helpline and claims processing services to individuals through Your Law, Law Together and National Accident Law.
·; Critical Care provides a range of specialist services in the catastrophic and serious injury market to both claimants and defendants through Bush and Company Rehabilitation.
·; Residential Property provides marketing services to law firms and conveyancers as well as surveys to individuals through Fitzalan Partners. It also provides property searches through Searches UK.
More information is available at www.nahlgroupplc.co.uk
More information is available at www.nahlgroupplc.co.uk and www.national-accident-helpline.co.uk.