Nahl Group Regulatory News (NAH)

26 November 2015

NAHL Group Plc

("NAHL" or "the Group")

Response to Autumn Statement

NAHL, the leading UK consumer marketing business focused on the UK legal services market, notes the comments made by the Chancellor in yesterday's Autumn Statement regarding Personal Injury ("PI") claims. The Government's proposals seek to restrict the ability for sufferers of minor whiplash injuries to claim compensation. In addition the Government has announced its intention to increase the Small Claims limit from £1,000 to £5,000. Clearly this is still at an early stage with little detail available as to how, if and when it might be implemented but most likely this will be subject to consultation to which NAHL will contribute. Therefore there is currently a level of uncertainty as to whether these changes will affect NAHL. There is no impact to management's expectations in the short term.

The Group's recent acquisitions of Bush & Company and Fitzalan Partners, neither of which are impacted by these changes, have already diversified the Group's model and management will continue to consider further opportunities that are available in the market to continue this diversification.

NAHL is the market leader in PI, has a robust business model and is well positioned to adapt to proposed regulatory changes, which it has done a number of times in the past. There will remain a significant market for claims valued below £5,000 and the Group's PI subsidiary, National Accident Helpline ("NAH"), is ideally positioned to assist consumers in processing those claims going forward. There may be potential to further accelerate industry consolidation meaning that more competitors are removed from the market, leaving NAHL in a stronger position to grow its market share with higher value claim enquiries.

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