NAHL Group Plc

Group revenue was GBP 19.2 million, broadly flat year on year. Statutory PBT increased 289% to GBP 1.9 million, underlying operating profit grew by over 70% to GBP 3.2 million, and basic EPS was 3p, up over 300%. Free cash flow was up 119% to GBP 1.5 million, with underlying cash generated from operations up 33% to GBP 3.2 million and cash conversion at 102%. Net debt fell to GBP 5.6 million from GBP 7.1 million at the start of the year and GBP 9 million at H1 2024. For segments, Consumer Legal Services operating profit rose 89% to GBP 1.6 million and Critical Care operating profit was up 1% to GBP 2.6 million; Critical Care operating margin was 31.5%. Forward guidance: management said it remains confident in delivering market expectations for the full year, and noted that July-August Consumer Legal Services inquiries were 2,452, 12% above the H1 monthly average, while NAL collected GBP 1.5 million of settlement cash in July-August versus GBP 1.4 million a year earlier.

James Saralis said the first half showed a solid performance with strong profitability and cash generation, and he highlighted the turnaround in Personal Injury and the stabilization of lead generation as key achievements. He emphasized that the group is balancing short-term profitability against longer-term investment needs, especially in NAL, where he said the business could generate more value if the company invested more in new inquiries and case processing. His tone was upbeat but measured, and he repeatedly framed capital allocation as the central strategic decision for the group.

Christopher Higham focused on the improved financial profile: revenue was GBP 19.2 million, underlying operating profit was GBP 3.2 million, underlying operating margin improved from 9.6% to 16.5%, and net interest fell 50% to GBP 0.2 million due to lower debt. He also pointed to strong cash generation, including GBP 3.2 million of underlying cash from operations, GBP 1.5 million of free cash flow, and GBP 5.3 million of cash collected from NAL settlements. He noted that net debt ended at GBP 5.6 million, versus GBP 7.1 million at the start of the year and GBP 9 million at H1 2024, giving the company room for future investments or acquisitions.

Analysts asked about the strategic review, and management said the board is exploring options to accelerate shareholder value, with “nothing off the table,” including acquisitions, investments in NAL, or divestments, but no timeline was given. On Bush & Co., management acknowledged the market is more challenging, especially in case management, and said the sale process likely created some distraction, though that is now in the past. On capital allocation and FY2026 earnings sustainability, management said growth will depend on continued expert witness demand, improvements in case management, and whether capital is deployed into NAL or Critical Care; they also said AI/automation is already being used in pockets and a more strategic review will follow in H2.