NAHL trading in line despite slight stumble amid operational changes

NAHL Group on Wednesday reported modestly lower earnings in parts of its personal injury business, though its performance was still expected to meet its expectations for the first half of the year.

The AIM-traded operator of the national accident helpline said new developments have led to the firm seeing "a slightly different mix of profit to that originally envisaged" and that lower levels of EBITDA are expected to be offset by lower levels of minority interest, causing no overall impact to full-year earnings.

NAHL has formed a number of joint ventures in its personal injury division, which it refers to as 'alternative business structures’ (ABS), with a view to providing legal services and thus enabling the firm to take a share of profit from work processed.

The company aims to aid consumers in understanding whether they have a genuine claim and can connect them to a specialist solicitor.

Russell Atkinson, chief executive of NAHL, said: "The group has delivered a good performance in the first half, as we continue to transition our business model through 2018 and 2019 and I am pleased that earnings are in line with our plans. I welcome the progress made following the launch of our ABS structures, which will provide us with greater flexibility in the way we process enquiries."

The current ABSs include one established with NewLaw in July 2017 which has yielded profits in line with expectations after achieving "encouraging levels of closed cases" and damages awarded to consumers.

Elsewhere, a second ABS established in November 2017 with Lyons Davidson is continuing to build scale, while a third is currently in the planning phase and facing a projected launch date of H1 2019.

Meanwhile, the group said its critical care division is expected to meet expectations after delivering new commercial contracts with two charities and an insurer, while the residential property division is "focused on margin and is well placed to capitalise on future opportunities".

"Critical Care has performed well and although residential property continues to face a challenging market backdrop, both divisions are contributing meaningfully to the group's performance," said Atkinson.

NAHL Group’s shares were down 4.94% at 115.50p at 1635 BST.