Central Asia Metals PLC – Interim Results for Six Months Ended 30 June 2019

Central Asia Metals PLC – Interim Results for Six Months Ended 30 June 2019

NAHL (AIM: NAH), the leading UK marketing and services business focused on the UK consumer legal market, announces its Interim Results for the six months ended 30 June 2019.


Financial Highlights


·      Revenue up 3.9% to £25.8m (2018 H1: £24.9m)

·      Underlying operating profit1 up 1.7% to £6.5m (2018 H1: £6.4m) including £0.5m of planned start-up losses of new ABS law firm, National Accident Law ("NAL").  Before these losses, up 10.6% to £7.0m

·      Cash generation from operations1 ahead at £3.5m (2018 H1: £1.3m)

·      Exceptional costs of £0.8m (2018 H1: £0.1m) incurred in preparing for small claims reforms

·      Profit before tax of £4.6m after exceptional costs (2018 H1: £5.3m)

·      Basic earnings per share of 3.4p (2018 H1: 8.2p), in line with the Board's expectations, reflecting

Shifting balance of case allocation between panel law firms and Legal Services business unit, in line with strategy; and

Continued development of ABS structures, highlighted by profit attributable to JV partners of £2.6m (2018 H1: £0.6m)

·      Interim dividend of 2.6p per share (2018 H1: 3.2p)

·      Net debt1 flat at £17.6m (2018 H1: £17.4m)


Operational Highlights


·      Strategic transformation of Personal Injury ("PI") division yielding positive results

·      Successful launch of wholly owned law firm, NAL, which is scaling and performing well

·      National Accident Helpline ("NAH") marketing and placement tactics adapted to respond to continuing competitive pressures

·      Continued strong progress from Critical Care, with double digit revenue and profit growth

·      Residential Property performance reflective of continuing difficult wider market conditions


Post-Period End


·      Announced the launch of a new ABS law firm, Law Together LLP, operated in partnership with panel law firm


Russell Atkinson, CEO of NAHL, commented:


"As a Group, we are pleased with the overall progress made in the first half of the year. The strategic transformation of our Personal Injury (PI) business continues and the changes put in place are now yielding positive results.


"Our wholly owned law firm, National Accident Law, has made encouraging progress since its launch in April 2019 and we are continuing to grow the number of enquiries being placed through our Legal Services business unit. Our focus remains on taking an economic interest in the success of the whole claim and capturing more value over the long-term. To this end, we are pleased to announce the launch of a new law firm, Law Together LLP, to help take advantage of the opportunities ahead.


"In our Critical Care division, we saw another strong performance, growing operating profit by 12.6% in the period as we begin the process of investing in the technology platform to position it for further growth. Conditions within the residential property market have been well documented and remain challenging.  The leadership team in our Residential Property division are focused on a range of initiatives to grow market share.


"We are encouraged by the progress made in the year so far, and although fully cognisant of the challenges ahead, we remain confident of achieving a full year result in line with our underlying EPS1 expectations."

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