NAHL sets up alternative business structure with Redde unit

The AIM-traded firm said the ABS would trade under the name Your Law LLP, and it was expected that the ABS would commence on 1 July.

As it had previously announced, following the Government's consultation first unveiled in November 2015 into the PI market, the group had consulted with its Panel Law Firms (PLFs) and opted to continue with the strategic decision taken in 2016 to invest in dealing with a proportion of its enquiries through different commercial and structural arrangements to those normally deployed.

It said the ABS would allow NAHL to have an ownership interest in a company providing legal services and the agreement with NewLaw would enable NAHL to participate in that venture and take a share of profit from work processed by the ABS.

The forthcoming relaunch of its National Accident Helpline (NAH) brand was expected to increase NAHL’s market share, the board said, and the ABS - along with other similar ventures - would enable the company to place the incremental enquiries generated by its increased investment.

It anticipated that in the coming years ABS structures would account for up to 30% of its total enquiries.

“We are delighted to have entered into this agreement with a partner of NewLaw's industry standing,” said NAHL CEO Russell Atkinson.

“The setting up of this ABS is a positive development in executing the group's strategic plans to advance its business model and prepare the division for the PI market changes announced by the Government in February 2017.”

Atkinson said NAHL had been working together with NewLaw since December 2015 on a trial basis with a view to setting up Your Law, and the board was “confident” in the anticipated performance and impact the ABS would have for the group.

“Our Panel Law Firm partners remain central to our plans.

“The ABS will enable us to grow our share of the PI market, whilst continuing to provide high quality marketing services to them as well as offering trusted and professional legal advice to consumers.”

As a result of NAHL now being the controller of an SRA regulated entity, the board said it would be writing to all shareholders to explain the implications for them.

The advice would also be published on the group's website in due course.

NAHL said the principal issue that shareholders should be aware of was that under the Legal Services Act 2007, the group could be required to seek approval from the SRA in the event a shareholder acquires a holding of 10% or more of the group's ordinary shares or voting rights.