Nahl Group Regulatory News (NAH)

20 January 2016

NAHL Group PLC

("NAHL" or the "Group")

Pre Close Trading Update

NAHL, the leading UK marketing and services business focused on the UK consumer legal market, is today providing a trading update for the year ended 31 December 2015.

The Group has continued to trade well during the second half and expects to deliver revenue from continuing operations(1) for the full year of £50.7 million up 15.7% and underlying operating profits(2) in line with market expectations(3).

National Accident Helpline ("NAH"), the Group's marketing services provider to the personal injury market, has focused on sourcing higher quality, lower volume enquiries for its Panel Law Firms in the second half. While this has reduced NAH's revenue in the second half, this has been offset by an increase in gross profit margins. We expect this focus on higher quality enquiries and profitability to continue in 2016.

As highlighted at the Interim Results, Fitzalan Partners, the Group's conveyancing business, has integrated well and continues to make good progress. Bush and Company, acquired in October 2015, provides specialist services in the catastrophic and serious injury market, and has made a solid start in its first ten weeks of trading as part of the Group and remains on plan. Since the period end the Group announced the acquisition of Searches UK, a leading conveyancing search provider, which will form part of Fitzalan Partners and provides opportunities for further growth.

Operational cash generation across the Group has continued to be strong and the Group ends the year with net debt of £8.5 million, having acquired Bush and Company for a consideration of £25.0 million payable in cash, net of £3.3 million free cash acquired. The acquisition was part funded by a placing which raised funds of £14.3 million after fees with the remainder of the consideration being funded through the Group's existing cash resources and debt facilities. The interim dividend of 6.25p per share was paid on 30 October 2015 and the Group intends to announce a final proposed dividend, payable in May 2016, in its forthcoming Final Results announcement. The Board's policy remains to maintain a progressive dividend which pays two thirds of the Group's retained earnings each year, with one third of this at the interim stage.

NAHL will announce its Final Results for the year ended 31 December 2015 on Tuesday 22 March 2016.

Russell Atkinson, CEO of NAHL, commented:

"I am pleased with the progress which has been made by the Group. We continue to grow while also capitalising on what remains a fragmented legal services market through the delivery of earnings enhancing acquisitions. Our flexible business model and focus on quality continues to allow us to adapt our mix to meet market demands whilst growing profitability.

"Following the Chancellor's Autumn Statement and the Fraud Task Force report, we do not expect the Government's proposed changes regarding Personal Injury claims to impact management expectations in the short term and it is important to point out that there is no certainty as to the nature of the changes that will be introduced. The Government's proposals are subject to a detailed period of consultation to be undertaken prior to any decision being implemented. Regardless of the outcome, the Group's strong balance sheet, combined with its marketing expertise and market leading brand strength leave it well placed to respond to and benefit from regulatory changes as it has done so in the past 20 years when faced with such change.

"Furthermore, the successful integration of Fitzalan Partners into the existing business along with the recent acquisitions of Bush and Company and Searches UK, demonstrate the delivery of our strategy to grow in aligned business sectors and to diversify the Group's model. The Board remains confident of further progress in 2016."

Enquiries:

Notes to Editors

NAHL Group

NAHL Group plc is a leading UK consumer marketing business focused on the UK legal services market. The Group comprises three companies: National Accident Helpline (NAH), Fitzalan Partners (Fitzalan) and Bush & Company Rehabilitation (Bush & Company). NAH provides outsourced marketing services in the personal injury market, Fitzalan, which includes Searches UK a leading conveyancing search provider, provides marketing services in the property market and Bush & Company provides a range of specialist services in the catastrophic injury market.

More information is available at www.nahlgroupplc.co.uk and www.national-accident-helpline.co.uk.