Dogged pursuit of medical negligence and non-road-traffic accident claims helped NAHL (NAHL) post a 16 per cent increase in first-half adjusted operating profit to £7m. The National Accident Helpline operator, which passes on vetted enquiries to a panel of 56 law firms in return for a small margin, also benefited from its takeover of Fitzalan Partners, which targets the residential property claims market.
Growing volumes of personal injury and medical negligence claims drove NAHL's total enquiries up 9 per cent, which translated into an 11 per cent rise in income from solicitors. However, higher advertising rates and mounting competition meant the group's cost per enquiry also crept up 1 per cent.
Sales of products such as medicals and insurance to law firms slid 8 per cent, reflecting the roll out of a new platform that randomises the choice of suppliers from which law firms must source medical reports for particular injuries. Nonetheless, management's confidence in new products - including an after-the-event medical offering - means it forecasts a return to growth for this business in 2016.
Broker Investec Securities expects full-year pre-tax profit of £14.9m, giving EPS of 27.5p (from £12.1m and 22.8p in 2014).
| NAHL (NAHL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 350p | MARKET VALUE: | £144m | |
| TOUCH: | 337-350p | 12-MONTH HIGH: | 362p | LOW: 197p |
| DIVIDEND YIELD: | 4.8% | PE RATIO: | 14 | |
| NET ASSET VALUE: | 91p* | NET CASH: | £3.4m | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2014† | 22.1 | 5.7 | 10.9 | 5.00 |
| 2015 | 25.4 | 6.4 | 12.5 | 6.25 |
| % change | +15 | +12 | +15 | +25 |
Ex-div: 1 Oct Payment: 30 Oct *Includes intangible assets of £44.2m, or 107p a share †NAHL floated in May 2014 | ||||
