24 sep 25   nahl group plc - interim results nahl group plc | nah | 57.5 0 0.0% | mkt cap: 27.7m    rns number : 5294a nahl group plc 24 september 2025     24 september 2025   nahl group plc ("nahl", the "company" or the "group")   interim results   first half performance in line with management's expectations; strong growth in profitability and cash generation     nahl (aim: nah), a leading marketing and services business focused on the uk consumer legal market, announces its unaudited interim results for the six months ended 30 june 2025 (the "period").   financial highlights   ·      as previously guided, revenue was broadly in line with the previous year at £19.2m (h1 2024: £19.4m), with consumer legal services revenue down 3% largely offset by a 2% increase in revenues in the group's critical care division. ·      underlying operating profit increased by 74% in the period to £3.2m (h1 2024: £1.8m), driven by an 89% increase in consumer legal services.  ·      profit before tax increased 289% to £1.9m (h1 2024: £0.5m). ·      basic earnings per share was 3.0p, up 323% on the 0.7p generated last year.  ·      cash generation remained strong, with free cash flow up 119% at £1.5m (h1 2024: £0.7m) and underlying operating cash conversion equally solid at 102% (h1 2024: 134%).  ·      net debt reduced to a 10-year low, decreasing by 38% from 30 june 2024 to £5.6m.   divisional and operational highlights   consumer legal services   ·      revenue decreased modestly from £11.4m to £11.0m due to a 5% reduction in revenues from the personal injury (pi) businesses, whilst residential property revenues grew 7%. ·      underlying operating profit increased by 89% to £1.6m with the group's personal injury business rebounding well to £1.4m after the challenges of last year. ·      searches uk remained steady generating an operating profit of £0.2m. ·      at the start of the year, the board made several changes to the leadership team in the pi business, implementing a new senior management team to help drive progress.  ·      in total, the business generated 6,552 enquiries in the period (h1 2024: 11,304) and management saved £1.3m in marketing costs. a total of 2,200 new enquiries were passed to national accident law (nal), which represented 34% of the total compared to 27% last year. we estimate these will be worth £2.9m in future revenues and cash by the time they mature. ·      nal settled 1,648 claims in the period which generated £5.3m of cash, 33% more than last year. the average value of each settled claim was 57% higher than last year. ·      at 30 june 2025, nal was processing 7,530 ongoing claims. we estimate after expensing marketing and processing costs to date, our book of ongoing claims will generate future revenues of £9.6m, future gross profits of £7.4m and future cash receipts of £13.1m.   critical care   ·      revenues increased by 2% to £8.2m, of which around 43% was recurring revenue. ·      underlying operating profit increased by 1% to £2.6m and operating profit margins remained strong at 31.5% (h1 2024: 31.8%). ·      generated £2.3m of cash from operations in the period, up from £2.1m last year.  ·      continued to experience high demand for expert witness services, with revenues growing 11%.  o  the number of expert witness reports completed and issued to customers also increased by 13% to 719 as the business grew capacity by increasing its network of associate expert witnesses.  o  at 30 june 2025, we were working with 226 associates, up from 196 at the start of the year. ·      in case management services, the market has been more challenging. revenues were down 9% largely as a result of new instructions from insurers declining which limited the number of initial needs assessment reports (inas) required. management have taken several steps to address these challenges which are delivering progress.  ·      successfully launched bush & co. kids to deliver outstanding child-focused support for our clients. bush & co. has a strong track record in this area, and this increased focus should result in further growth in this important segment of the market. ·      bush & co. care solutions also had a good first half, growing revenues by 26% to £0.4m.    outlook   ·      the board remains confident in delivering a full year outturn in line with expectations. ·      in consumer legal services, in july and august, 2,452 new enquiries were generated, 12% higher than the monthly average in h1 and at a lower enquiry acquisition cost. ·      in nal, cash collected from settled claims grew to £1.5m compared to £1.4m in the same period last year. ·      in critical care, in july and august, 230 expert witness reports were issued, compared to 239 last year, and 81 ina reports, compared to 88 last year. ·      in september, the bush & co. management team was further strengthened with the appointment of a new divisional finance director who will support the actions taken to improve case management performance and drive further growth. ·      net debt has fallen further to £5.5m at 31 august 2025 (30 june 2025: £5.6m). ·      since the conclusion of the bush & co. sale process, the board has been working with advisers to explore alternative options to accelerate value for shareholders. further work is required to develop these options and the board will update shareholders in due course.   james saralis, ceo of nahl, commented:   "i am pleased with the group's solid first half performance as we delivered strong growth in profitability and cash generation while also reducing net debt to a 10-year low. this represents a considerable achievement for the business and, on behalf of the board, i would like to take this opportunity to thank all of our hardworking teams for their ongoing dedication and commitment.   "in consumer legal services the continued turnaround of our personal injury business and the stabilisation of lead generation has been particularly pleasing, and the new senior management team at nal is committed to driving further progress to ultimately generate higher returns. turning to critical care, the division increased revenues, operating profit and cash from operations in the first half, and whilst the case management services market has been more challenging, our expert witness services, bush & co. care solutions and our new proposition bush & co. kids, all experienced high demand.   "i am further encouraged by the group's performance so far in the second half and am pleased to confirm the board remains confident in delivering on market expectations for the full year. finally, as communicated, following the cessation of the bush & co sale process, the board continues to work with advisers to explore alternative options to accelerate shareholder value and i look forward to updating the market on progress here in due course."       for further information:   nahl group plc james saralis (ceo) chris higham (cfo)     via fti consulting tel: +44 (0) 20 3727 1000 allenby capital (aim nominated adviser & broker) jeremy porter/dan dearden-williams (corporate finance) amrit nahal/kelly gardiner (sales & corporate broking)   tel: +44 (0) 20 3328 5656 fti consulting (financial pr) alex beagley amy goldup   tel: +44 (0) 20 3727 1000 nahl@fticonsulting.com notes to editors nahl group plc (aim: nah) is a leader in the consumer legal services market. the group provides services and products to individuals and businesses through its two divisions:   · consumer legal services provides outsourced marketing services to law firms through national accident helpline and claims processing services to individuals through national accident law, law together and your law.  in addition, it also provides property searches through searches uk.   · critical care provides a range of specialist services in the catastrophic and serious injury market to both claimants and defendants through bush & co.   more information is available at: www.nahlgroupplc.co.uk www.national-accident-helpline.co.uk www.national-accident-law.co.uk www.bushco.co.uk     interim management statement i am pleased to report nahl's interim results for the six months ended 30 june 2025. overview nahl performed well in the first half of 2025, buoyed by a turnaround in the group's personal injury business.  profits recovered sharply, with profit before tax up 289%, and continued strong cash generation resulting in net debt falling to a 10-year low of £5.6m.    following the conclusion of the process to explore a sale of bush & co., the board is exploring alternative options to accelerate value for shareholders. group results group revenue for the period was flat compared to the previous year at £19.2m (h1 2024: £19.4m).  revenues in the group's consumer legal services division fell by 3% and those in the group's critical care division grew by 2%.  underlying operating profit increased by 74% in the period to £3.2m (h1 2024: £1.8m).  this was driven by an 89% increase in consumer legal services and a £0.5m reduction in amortisation of intangible assets, which had been fully amortised in the previous year.  the group incurred £0.2m of exceptional costs related to the cessation of the sale of bush & co., and profit attributable to members' non-controlling interests in llps fell by 9% to £0.8m (h1 2024: £0.9m).  the group continued to reduce borrowing costs on its revolving credit facility by reducing the drawn balance.  financial expenses amounted to £0.3m in the period, compared to £0.5m last year, after the group repaid £1.8m off the debt (h1 2024: £0.5m repaid).  profit before tax increased by 289% to £1.9m (h1 2024: £0.5m), and after taxation of £0.5m (h1 2024: £0.2m), the group returned a profit and total comprehensive income for the period of £1.4m (h1 2024: £0.3m).  basic earnings per share ("eps") was 3.0p, up 323% on the 0.7p generated last year.  the group benefitted from another six months of strong cash generation, with free cash flow up 119% at £1.5m (h1 2024: £0.7m).  operating cash conversion was also solid at 102% (h1 2024: 134%).  as a result, net debt at 30 june 2025 was £5.6m, having decreased by 22% from £7.1m at 31 december 2024 and by 38% from £9.0m at 30 june 2024.  consumer legal services in our consumer legal services division, revenue decreased modestly from £11.4m to £11.0m in the period.  this comprised a 5% reduction in revenues from the personal injury businesses to £9.3m (h1 2024: £9.7m), which was partly offset by the 7% revenue growth delivered in our residential property business, searches uk (h1 2025: £1.7m; h1 2024: £1.6m).  in personal injury, as management anticipated going into the year, we experienced reduced demand for enquiries from our panel of third-party law firms, resulting in a decrease in panel revenues of £1.3m.  however, that was partially offset by £0.9m of growth in the revenues generated by our integrated law firm, nal.  underlying operating profit increased by 89% in the first half to £1.6m (h1 2024: £0.8m) with the group's personal injury business rebounding well to £1.4m after the challenges of last year (h1 2024: £0.7m).  management saved £1.3m in marketing costs in the period, and searches uk remained steady generating a profit of £0.2m (h1 2024: £0.2m). after the deduction of £0.8m of profit attributable to members' non-controlling interests in llps (h1 2024: £0.9m), and £0.1m of finance income, profit before tax of the division increased by £0.8m to £0.8m (h1 2024: nil). the division generated £1.7m of cash from operations in the period (h1 2024: £1.5m), and after deduction of drawings paid to llp partners both the personal injury (h1 2025: £0.5m; h1 2024: £0.4m) and residential property (h1 2025: £0.2m; h1 2024: £0.2m) businesses were cash generative.  cash conversion was 109% (h1 2024: 179%), although this measure is before drawings paid to llp members.  our strategy for growth in the personal injury market remains to build a sustainable, integrated law firm, growing the value of claims we process ourselves to generate higher returns.  at the start of the year, the board made changes to the leadership team in this business, and i implemented a new senior management team comprising of heads of departments to help drive change in the business.  we reframed the division's strategy through seven key strategic priorities, which include maximising the return on marketing spend; growing value in nal to fuel future profitability; realising the full panel opportunity; delivering exceptional service to our customers; and generating positive cash flow. whilst a more detailed update will be presented at the time of the annual results, i'm pleased to report that good progress is being made in each of these areas and this framework is already delivering results. we have also invested in senior marketing resource and adopted a more targeted approach to google search; as well as increasing investment in organic search; and developing more partnerships, all of which has reaped rewards.  as a result, the team have returned enquiry acquisition costs to historical levels, and the quality of the rta and non-rta leads generated in the period have been of a higher value than previous years.  in total, the business generated 6,552 enquiries in the period (h1 2024: 11,304).  the mix of work comprised 30% rta (h1 2024: 28%), 39% non-rta (h1 2024: 43%) and 31% specialist (h1 2024: 29%). a total of 2,200 new enquiries were passed to nal for processing (h1 2024: 3,072), which represented 34% of the total compared to 27% last year.  this cost £1.2m in marketing costs.  whilst many of these enquiries will not translate into winning claims this financial year, they further strengthen the embedded value of nal's book of claims, which will lead to future profits and cash.  we estimate that these enquiries will be worth £2.9m  in future revenues and cash by the time they mature.  this was lower than the number of new enquiries placed into nal last year, as the business sought to manage its recovery in lead generation and short-term profitability (h1 2024: 3,072 enquiries costing £1.1m in marketing; worth an estimated £2.9m in future revenue and cash).  whilst the panel opportunity has reduced materially over the past ten years, which led us to launch our own law firm in 2019 to process claims, we continue to work with a number of high-quality, third-party law firms and a total of 2,742 enquiries were distributed to the panel in the first half of the year (h1 2024: 6,286).  the group also continued to distribute work to law together llp, our joint venture law firm, which is operated in partnership with hcc solicitors.  law together performed strongly in the period and we distributed 1,610 enquiries into the firm (h1 2024: 1,946 enquiries).  nal had a strong six months.  the firm settled 1,648 claims in the period (h1 2024: 1,911 claims) which generated £5.3m of cash, 32% more than the £4.0m generated last year.  the business has been actively growing the number of cases it litigates to drive higher settlements for our clients, and higher revenues for the firm. this has contributed to a 57% increase in the average value of claims settled compared to last year.  accordingly, we have increased our estimate for the value of existing claims across all cohorts of our claims book by £1.1m.     as a result of the high number of settlements and a lower number of new enquiries in the period, nal has ended the first half processing fewer enquiries than it started with. at 30 june 2025, nal was processing 7,530 ongoing claims (30 june 2024: 9,033 ongoing claims).  these claims represent an embedded value to the business, being the future profits and cash to be generated by processing them through to settlement.  we estimate that after expensing the marketing costs to generate these claims and the processing costs to date, our book of ongoing claims will generate future revenues of £9.6m, future gross profits of £7.4m and future cash receipts of £13.1m. management have continued to reduce excess cost and have invested further in technology this year, upgrading our case management system, and developing solutions, including through artificial intelligence, to improve efficiencies in our marketing and back-office processes. critical care in our critical care division, revenues increased by 2% to £8.2m (h1 2024: £8.0m), of which around 43% was recurring revenue.  underlying operating profit increased by 1% to £2.6m (h1 2024: £2.6m) and operating profit margins remained strong at 31.5% (h1 2024: 31.8%).  the business generated £2.3m of cash from operations in the period, up from £2.1m last year.  the business continued to experience high demand for its expert witness services, with revenues for this service line growing 11% in the period.  the number of expert witness reports completed and issued to customers increased by 13% to 719 (h1 2024: 636 reports) as the business grew its capacity by successfully increasing its network of associate expert witnesses.  at 30 june 2025, we were working with 226 associates, up from 196 at the start of the year. this service line has maintained a strong pipeline of future work, with new instruction numbers for expert witness reports broadly level with last year at 667 instructions (h1 2024: 687 instructions). in case management services, the market has been more challenging.  revenues were down 9% and the business delivered 210 initial needs assessment reports ("inas") in the period (h1 2024: 261 inas).  instruction numbers, at 237, were broadly unchanged from last year and at the end of the period the business was servicing 1,157 ongoing case management clients (h1 2024: 1,388) that generate recurring revenue.  this reduction in case management revenue was down to two factors: 1)   firstly, we have experienced a gradual decline in new instructions over the past few years.  these drive inas, the majority of which result in ongoing case management.  data from the last financial year suggest that new instructions from insurers, in particular, fell by 28%, which appears to be driving this trend.  2)   secondly, we have witnessed an increase in the rate of discharges from ongoing case management, which reduces the number of cases that our case managers can work.  management have taken several steps to address these challenges, including the recruitment of a new account management role to better support insurer customers and help increase instruction numbers; growing the number of associate case managers, which has increased from 132 to 142 in the period; and implementing an improved triage processes for matching associates to new enquiries which has helped to improve conversion rates from enquiry to instruction. however, the most promising new initiative is the introduction of the bush & co. kids proposition, which was launched at the end of last year.  this service aims to deliver outstanding child-centred support for our clients, that is safe and effective and gives the child or young person a greater voice throughout their rehabilitation.  it is designed to complement our partnership with the child brain injury trust, where together we offer the uk's leading case management service focusing solely on childhood acquired brain injury.  this increased focus on children and young people ("cyp") is strategically important as cyp cases are generally more complex, and require more specialised case management support, for longer.  this results in higher levels of monthly billing and longer case durations.  bush & co. have previously demonstrated the quality of their service in cyp cases, and this increased focus should result in further growth in this important segment of the market. elsewhere, bush & co. care solutions also had a good first half and grew revenues by 26% to £0.4m.  the number of ongoing care packages, which result in monthly recurring income, increased from 31 at 31 december 2024 to 34 at the end of the period.  on 19 june 2025, as reported, the board concluded its review into the future of the group's critical care business without achieving a sale.  this process resulted in some distraction and uncertainty for the business, but i am pleased that this uncertainty has now been resolved and the team can return to focusing on developing the proposition and growing the business. summary and outlook in summary, i am pleased with the results for the first half of the year, which were in line with the board's expectations.  the group performed well, with strong growth in profits and a further reduction in net debt.  the turnaround in our personal injury business, and stabilisation of our lead generation, has been particularly pleasing to witness.  however, whilst good progress is being made and the business has returned to profitability, nal would require higher levels of investment in new enquiries and case processing in order to reach its medium-term potential. since the conclusion of the bush & co. process, the board has been working with its advisers to explore alternative options to accelerate value for shareholders.  further work is required to develop these options and the board will update shareholders as and when appropriate. looking ahead in the short-term, trading in the consumer legal services division in july and august has been positive. we generated 2,452 new enquiries, which equates to a monthly average that is 12% higher than in the first half, but at a lower enquiry acquisition cost.  in nal, cash collected from settled claims grew slightly to £1.5m compared to £1.4m in the same period last year. in critical care, in july and august, we issued 230 expert witness reports, compared to 239 last year, and 81 ina reports, compared to 88 last year.  instruction levels were mixed over the summer, with 6% more expert witness instructions being secured in july and august, but 30% fewer case management instructions in the same period.  in september, we have further strengthened the management team in bush & co. with the recruitment of a new divisional finance director who will support the actions we are taking to improve case management performance and drive further growth. finally, net debt has fallen further to £5.5m at 31 august (30 june 2025: £5.6m; 31 december: £7.1m).  based on these results and our expectations for the rest of the year, the board is confident in delivering a full year outturn for the group in line with market expectations.   james saralis chief executive officer                           1.   free cash flow is defined as net cash generated from operating activities less net cash used in investing activities less payments made to partner llp members and less principal element of lease payments. this measure provides management with an indication of the amount of cash available for discretionary investing or financing after removing material non-recurring expenditure that does not reflect the underlying trading operations.      unaudited 6 months ended 30 june 2025 unaudited 6 months ended 30 june 2024 audited 12 months ended  31 december 2024 statutory measure - net cash generated from operating activities  2.6 1.9 5.1 net cash used in investing activities (excluding disposal of subsidiary)  (0.0) (0.1) (0.2) principal elements of lease payments  (0.1) (0.2) (0.2) drawings paid to llp members  (1.0)        (0.9)               (2.1) net cash used in financing activities (before borrowings)  (1.1) (1.1) (2.3) free cash flow  1.5 0.7 2.6     2.   operating cash conversion is calculated as cash generated from operations divided by operating profit. this measure allows management to monitor the conversion of underlying operating profit into operating cash.      unaudited 6 months ended 30 june 2025 unaudited 6 months ended 30 june 2024 audited 12 months ended  31 december 2024 statutory measure - cash generation from operations  2.8 2.4 6.6 cash flows relating to exceptional items  0.4 - 0.2 underlying operating cash flow  3.2 2.4 6.8 statutory measure - operating profit  3.2 1.8 3.9 operating cash conversion  101.8% 134.0% 173.2%     3.   net debt is defined as cash and cash equivalents less interest-bearing borrowings:      unaudited 6 months ended 30 june 2025 unaudited 6 months ended 30 june 2024 audited 12 months ended  31 december 2024 cash and cash equivalents  1.6 2.2 1.9 interest bearing borrowings  (7.2) (11.2) (9.0) net debt  (5.6) (9.0) (7.1)     consolidated statement of comprehensive income for the 6 months ended 30 june 2025             note unaudited 6 months ended 30 june 2025 £000         unaudited 6 months ended 30 june 2024   £000       audited 12 months ended 31 december 2024 re-presented1 £000      revenue 2 19,209 19,394 38,805 cost of sales  (9,622) (10,284) (20,432) gross profit  9,587 9,110 18,373 administrative expenses  (6,420) (7,295) (14,431) underlying operating profit  3,167 1,815 3,942 exceptional items:     impairment of goodwill  - - (39,897) transaction costs 3 (185) - (397) restructuring costs 3 - - (185) operating profit/(loss)  2,982 1,815 (36,537) profit attributable to members' non-controlling interests in llps  (834) (916) (1,850) financial income  134 107 250 financial expense 4 (334) (505) (958) profit/(loss) before tax  1,948 501 (39,095) taxation 5 (520) (168) (195) profit/(loss) and total comprehensive income for the period  1,428 333 (39,290)               earnings per share (p) - continuing operations  unaudited 6 months ended 30 june 2025 unaudited 6 months ended 30 june 2024 audited 12 months ended  31 december 2024 re-presented basic earnings per share 8 3.0 0.7 (83.1) diluted earnings per share 8 2.9 0.7 (83.1)   1.     the december 2024 results have been re-presented to reflect the cessation of the critical care cash generating unit sales process. see note 11 for further details.   all results relate to continuing operations (see note 11).       consolidated statement of financial position at 30 june 2025   note unaudited as at 30 june 2025 £000 unaudited as at 30 june 2024 £000 audited as at 31 december 2024 re-presented £000 non-current assets     goodwill  15,592 55,489 15,592 other intangible assets  646 1,262 785 property, plant and equipment  264 343 290 right of use assets  1,356 1,620 1,488 deferred tax asset  20 25 20   17,878 58,739 18,175 current assets     trade and other receivables (including £4,843,000 (june 2024: £2,651,000; december 2024: £4,443,000) due in more than one year) 6 27,675 30,423 27,873 cash and cash equivalents  1,611 2,194 1,855   29,286 32,617 29,728 total assets  47,164 91,356 47,903 current liabilities     trade and other payables 7 (14,170) (15,818) (14,784) lease liabilities  (257) (248) (252) member capital and current accounts  (3,360) (3,685) (3,492) current tax liability  (309) (315) -   (18,096) (20,066) (18,528) non-current liabilities     lease liabilities  (1,141) (1,352) (1,225) other interest-bearing loans and borrowings  (7,178) (11,184) (8,966) deferred tax liability  (56) (160) (56)   (8,375) (12,696) (10,247) total liabilities  (26,471) (32,762) (28,775) net assets  20,693 58,594 19,128      equity     share capital  120 119 119 share option reserve  5,475 5,182 5,339 share premium  14,595 14,595 14,595 merger reserve  (66,928) (66,928) (66,928) retained earnings  67,431 105,626 66,003 capital and reserves attributable to the owners of nahl group plc  20,693 58,594 19,128       consolidated statement of changes in equity for the 6 months ended 30 june 2025   share capital £000 share option reserve £000 share premium £000 merger reserve £000 retained earnings £000 total equity £000 balance at 1 january 2025 119 5,339 14,595 (66,928) 66,003 19,128 total comprehensive income for the period       profit for the period - - - - 1,428 1,428 total comprehensive income - - - - 1,428 1,428 transactions with owners, recorded directly in equity      issue of share capital 1 - - - - 1 share-based payments - 136 - - - 136 total transactions with owners recorded directly in equity 1 136 - - - 137 balance at 30 june 2025 120 5,475 14,595 (66,928) 67,431 20,693               balance at 1 january 2024 117 4,985 14,595 (66,928) 105,293 58,062 total comprehensive income for the period       profit for the period - - - - 333 333 total comprehensive income - - - - 333 333 transactions with owners, recorded directly in equity       issue of share capital 2 - - - - 2 share-based payments - 197 - - - 197 total transactions with owners recorded directly in equity 2 197 - - - 199 balance at 30 june 2024 119 5,182 14,595 (66,928) 105,626 58,594               balance at 1 january 2024 117 4,985 14,595 (66,928) 105,293 58,062 total comprehensive income for the year       loss for the year - - - - (39,290) (39,290) total comprehensive income - - - - (39,290) (39,290) transactions with owners, recorded directly in equity       issue of share capital 2 - - - - 2 share-based payments - 354 - - - 354 total transactions with owners recorded directly in equity 2 354 - - - 356 balance at 31 december 2024 119 5,339 14,595 (66,928) 66,003 19,128  consolidated cash flow statement for the 6 months ended 30 june 2025   note unaudited 6 months ended 30 june 2025 £000 unaudited 6 months ended 30 june 2024 £000 audited 12 months ended 31 december 2024 £000 cash flows from operating activities     profit/(loss) for the period  1,428 333 (39,290) adjustments for:     profit attributable to members' non-controlling interests in llps  834 916 1,850 property, plant and equipment depreciation  51 56 115 right of use asset depreciation  132 132 264 amortisation of intangible assets  168 582 1,110 impairment of goodwill  - - 39,897 financial income  (134) (107) (250) financial expense  334 505 958 share-based payments  136 197 354 taxation  520 168 195   3,469 2,782 5,203 (increase)/decrease in trade and other receivables  (40) 79 2,871 decrease in trade and other payables  (615) (428) (1,460) cash generation from operations  2,814 2,433 6,614 interest paid  (294) (455) (896) interest received  104 72 181 tax paid  - (165) (817) net cash generated from operating activities  2,624 1,885 5,082   cash flows from investing activities     acquisition of property, plant and equipment  (25) (71) (78) acquisition of intangible assets  (29) (60) (111) disposal of subsidiary  59 59 59 net cash used in investing activities  5 (72) (130)   cash flows from financing activities     repayment of borrowings  (1,750) (500) (2,750) loan arrangement fees  (61) (65) (65) issue of share capital  1 2 2 principal element of lease payments  (97) (144) (245) drawings paid to llp members  (966) (923) (2,050) net cash used in financing activities  (2,873) (1,630) (5,108)   net (decrease)/increase in cash and cash equivalents  (244) 183 (156) cash and cash equivalents at beginning of period  1,855 2,011 2,011 cash and cash equivalents at end of period  1,611 2,194 1,855     notes to the financial statements   1. accounting policies   general information the interim results for the current and comparative period to 30 june have not been audited or reviewed by auditors pursuant to the auditing practices board guidance of review of interim financial information.   these interim results do not comprise statutory accounts within the meaning of section 434 of the companies act 2006. statutory accounts for the year ended 31 december 2024 were approved by the board of directors on 6 may 2025 and delivered to the registrar of companies. the report of the auditors on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under section 498 of the companies act 2006.   in preparing the interim results, the board has considered the group's ability to continue as a going concern.  this assessment included a review of management's financial forecasts, covering a range of potential scenarios. the going concern assessment focuses on two key areas being the ability of the group to meet its debts as they fall due and being able to operate within its banking facility. the group has access to a £12.0m revolving credit facility ('rcf') with its bankers. in all of the scenarios the group has modelled it would have sufficient liquidity within its current rcf to meet its liabilities as they fall due and would not need to access additional funding.   the condensed set of financial statements was approved by the board of directors on 23 september 2025.   basis of preparation profit or loss and other comprehensive income of subsidiaries acquired or disposed of during the year are recognised from the effective date of acquisition, or up to the effective date of disposal, as applicable.   statement of compliance the interim results for the current and comparative period to 30 june have been prepared in accordance with ias 34 interim financial reporting applied in conformity with the requirements of the companies act 2006 and the aim rules of uk companies.  they do not include all of the information required for full annual financial statements and should be read in conjunction with the financial statements of the group for the year ended 31 december 2024, which have been prepared in accordance with international financial reporting standards ("ifrs") in conformity with the requirements of the companies act 2006.   new and amended standards adopted by the group the following new or amended standards are applicable to the group for the current reporting period:  amendments to ias 21 - lack of exchangeability   none of the amendments above have had a material effect on the amounts reported or disclosures included in the 2025 interim financial statements.   use of judgements and estimates the preparation of financial statements in conformity with ifrs requires management to make judgements and estimates that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. actual results may differ from these estimates. estimates and underlying assumptions are reviewed on an ongoing basis. revisions to accounting estimates are recognised in the year in which the estimates are revised and in any future years affected.   in preparing the condensed set of financial statements, the significant judgements made by management in applying the group's accounting policies and the key sources of estimation uncertainty were of the same type as those that applied to the financial statements for the year ended 31 december 2024.   significant accounting policies the accounting policies used in the preparation of these interim financial statements for the 6 months ended 30 june 2025               are the accounting policies as applied to the group's financial statements for the year ended 31 december 2024.   financial assets and liabilities the group's principal financial instruments comprise cash and cash equivalents, trade and other receivables, trade and other payables and interest-bearing borrowings.   trade and other receivables trade and other receivables are recognised initially at fair value. subsequent to initial recognition, trade and other receivables are stated at amortised cost using the effective interest method, less any impairment losses calculated in line with ifrs 9.   trade and other payables trade and other payables are recognised initially at fair value. subsequent to initial recognition, trade and other payables are stated at amortised cost using the effective interest method.   cash and cash equivalents cash and cash equivalents comprise cash balances. cash and cash equivalents are repayable on demand and are recognised at their carrying amount.   interest-bearing borrowings interest-bearing borrowings are recognised initially at fair value less attributable transaction costs. subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost using the effective interest method, less any impairment losses.   recoverable disbursements and disbursements payable disbursement payables represent the balance of disbursements incurred in the processing of personal injury claims. these disbursements will ultimately be billed on settlement of a case or recovered from insurance if a case should fail and so the recoverable disbursements represents the value of disbursements still to be billed. disbursement payables and receivables are recognised initially at fair value and subsequent to initial recognition, are stated at amortised cost using the effective interest method.   member capital and current accounts member capital and current accounts represent the balances owed to non-controlling members' in the llps. these consist of any capital advances and unpaid allocated profits as at the period end. members capital and current accounts are classified as financial liabilities and are recognised initially at fair value. subsequent to initial recognition, members capital and current accounts are stated at amortised cost using the effective interest method.     2. operating segments   geographic information all revenue and assets of the group are based in the uk.   operating segments the activities of the group are managed by the board, which is deemed to be the chief operating decision maker (codm). the codm has identified the following segments for the purpose of performance assessment and resource allocation decisions. these segments are split along product lines and are consistent with the prior year.   consumer legal services - revenue derived from two divisions being personal injury and residential property. within personal injury, revenue is generated from   a) marketing services - revenue from the provision of marketing activities to generate enquiries which are panelled to our panel law firms, based on a cost plus margin model;  b) product provision - consisting of commissions received from product providers for the sale of additional products by them to the panel law firms; c) service provision (legal services) - in the case of our abs law firms and self- processing operation, national accident law, revenue receivable from clients for the provision of legal services. within residential property, revenue is generated from: a) expert reports - searches uk provides search reports.     critical care - revenue from the provision of expert witness reports and case management support within the medico-legal framework for multi-track cases.   shared services - costs that are incurred in managing group activities or not specifically related to a product.   other items - other items represent share-based payment charges and amortisation charges on intangible assets recognised as part of business combinations.     consumer legal services £000 critical care £000 shared services1  £000 other items1 £000 eliminations2  £000 total  £000 6 months ended 30 june 2025       revenue 11,020 8,189 - - - 19,209 depreciation and amortisation (86) (112) (152) - - (350) underlying operating profit/(loss) 1,569 2,579 (845) (136) - 3,167 exceptional items - - (185) - - (185) operating profit/(loss) 1,569 2,579 (1,030) (136)  2,982 profit attributable to members' non-controlling interests in llps (834) - - - - (834) financial income 92 30 12 - - 134 financial expenses - - (334) - - (334) profit/(loss) before tax 827 2,609 (1,352) (136) - 1,948 trade receivables 1,672 6,017 - - - 7,689 total assets3 22,254 7,444 17,466 - - 47,164 segment liabilities3 (14,848) (1,852) (2,228) - - (18,928) capital expenditure (including intangibles) (27) (25) (2) - - (54)        6 months ended 30 june 2024       revenue 11,368 8,026 - - - 19,394 depreciation and amortisation (110) (76) (171) (413) - (770) operating profit/(loss) 830 2,551 (894) (672) - 1,815 profit attributable to members' non-controlling interests in llps (916) - - - - (916) financial income 99 - 8 - - 107 financial expenses - - (505) - - (505) profit/(loss) before tax 13 2,551 (1,391) (672) - 501 trade receivables 2,344 6,394 - - - 8,738 total assets3 25,333 7,830 75,699 - (17,506) 91,356 segment liabilities3 (16,639) (1,602) (2,862) - - (21,103) capital expenditure (including intangibles) (20) (51) - - - (71)   12 months ended 31 december 2024       revenue 22,918 15,887 - - - 38,805 depreciation and amortisation (202) (166) (339) (782) - (1,489) underlying operating profit/(loss) 2,004 4,862 (1,659) (1,265) - 3,942 impairment (39,897) - - - - (39,897) exceptional items (185) - (397) - - (582) operating profit/(loss) (38,078) 4,862 (2,056) (1,265) - (36,537) profit attributable to non-controlling interest members in llps (1,850) - - - - (1,850) financial income 189 42 19 - - 250 financial expenses - - (958) - - (958) profit/(loss) before tax (39,739) 4,904 (2,995) (1,265) - (39,095) trade receivables 1,625 5,537 - - - 7,162 total assets3 22,835 7,410 17,658 - - 47,903 segment liabilities3 (15,277) (1,809) (2,667) - - (19,753) capital expenditure (including intangibles)   (68) (121) - - - (189)   1.             shared services and other items do not form part of the operating segments of the group. they include expenses incurred that cannot be attributable to an operating segment. 2.             eliminations represents the difference between the cost of subsidiary investments included in the total assets figure for each segment and the value of goodwill arising on consolidation. 3.             total assets and segment liabilities exclude intercompany loan balances as these are not included in the segment results reviewed by the chief operating decision maker. segment liabilities comprise trade and other payables (june 2025: £14,170,000, june 2024: £15,818,000, dec 2024: £12,975,000), current lease liabilities (june 2025: £257,000, june 2024: £248,000, dec 2024: £252,000), non-current lease liabilities (june 2025: £1,141,000, june 2024: £1,352,000, dec 2024: £1,225,000) and member capital accounts (june 2025: £3,360,000, june 2024: £3,685,000, dec 2024: £3,492,000).       3. exceptional items  exceptional items included in the statement of comprehensive income are summarised below:   unaudited 6 months ended 30 june 2025 £000 unaudited 6 months ended 30 june 2024 £000 audited 12 months ended 31 december 2024 £000 goodwill impairment1 - - 39,897 transaction costs for potential critical care disposal2 185 - 397 personal injury restructure3 - - 185 total 185 - 40,479   1.             impairment of the goodwill allocated to the personal injury cash generating unit. 2.             costs incurred to date in relation to the disposal of critical care. these include external legal and consultancy costs. this process ended in june 2025 without a sale. 3.             costs incurred in respect of payments for loss of office as part of a management restructure in personal injury.   4. financial expense   unaudited 6 months ended 30 june 2025 £000 unaudited 6 months ended 30 june 2024 £000 audited 12 months ended 31 december 2024 £000 interest on bank loans 294 454 857 amortisation of facility arrangement fees 23 29 61 interest on lease liabilities 17 22 40 total 334 505 958   interest on bank loans consists of interest incurred in respect of a revolving credit facility of £12m which is due to terminate on 31 december 2026. interest is payable at 2.45% above sonia per annum. there have been no changes to the terms of the revolving credit facility agreement since the year ended 31 december 2024 and details of the amounts outstanding in respect of this facility are given in note 10.       5. taxation  unaudited 6 months ended 30 june 2025 £000 unaudited 6 months ended 30 june 2024 £000 audited 12 months ended 31 december 2024 £000 current tax expense    current tax on income for the year 520 275 475 adjustments in respect of prior years - - (79) total current tax 520 275 396     deferred tax credit    origination and reversal of timing differences - (107) (201) total deferred tax - (107) (201) total expense in statement of comprehensive income 520 168 195 total tax charge 520 168 195   reconciliation of effective tax rate:   unaudited 6 months ended 30 june 2025 £000 unaudited 6 months ended 30 june 2024 £000 audited 12 months ended 31 december 2024 £000 profit/(loss) for the period 1,428 333 (39,290) total tax expense 520 168 195 profit/(loss) before taxation 1,948 501 (39,095)     tax using the uk corporation tax rate of 25.0% (june 2024: 25.0%, december 2024:25.0%) 487 125 (9,774) non-deductible expenses 49 62 10,162 adjustments in respect of prior years - - (79) share scheme deductions (16) (19) (114)     total tax charge 520 168 195   the group's tax charge of £520,000 (june 2024: £168,000, december 2024: £195,000) represents an effective tax rate of 26.7% (june 2024: 33.4%, december 2024: 14.1% of underlying profit before tax). the effective tax rate is higher than the standard corporation tax rate of 25.0% for the reasons as set out above.       6.         trade and other receivables   unaudited 6 months ended 30 june 2025 £000 unaudited 6 months ended 30 june 2024 £000 audited 12 months ended 31 december 2024 £000 trade receivables: receivable in less than one year 5,417 7,272 5,162 trade receivables: receivable in more than one year 2,272 1,466 2,000 accrued income: receivable in less than one year 6,465 10,076 7,346 accrued income: receivable in more than one year 2,571 1,185 2,443 other receivables 34 87 93 prepayments 804 769 746 corporation tax repayable - - 210 recoverable disbursements 10,112 9,568 9,873 total 27,675 30,423 27,873   a provision against trade receivables and accrued income of £594,000 (june 2024: £470,000, december 2024: £558,000) is included in the figures above.   trade receivables and accrued income receivable in greater than one year are classified as current assets as the group's working capital cycle is considered to be up to 36 months as extended credit terms are offered as part of some commercial agreements.     7. trade and other payables   unaudited 6 months ended 30 june 2025 £000 unaudited 6 months ended 30 june 2024 £000 audited 12 months ended 31 december 2024 £000 trade payables 1,121 1,985 1,209 disbursements payable 6,232 6,554 6,297 other taxation and social security 1,247 1,243 1,186 other payables, accruals and deferred revenue 5,416 5,752 5,928 customer deposits 154 284 164 total 14,170 15,818 14,784   8. earnings per share   the calculation of basic earnings per share at 30 june 2025 is based on a profit attributable to ordinary shareholders of the parent company of £1,428,000 (june 2024: profit of £333,000, december 2024: loss of £39,290,000) and a weighted average number of ordinary shares outstanding of 47,657,689 (june 2024: 47,047,306, december 2024: 47,283,991).       profit/(loss) attributable to ordinary shareholders    unaudited 6 months ended 30 june 2025 £000   unaudited 6 months ended 30 june 2024 £000   audited 12 months ended 31 december 2024 £000   profit/(loss) for the period attributable to the shareholders 1,428 333 (39,290)   weighted average number of ordinary shares number           unaudited 6 months ended 30 june 2025   unaudited 6 months ended 30 june 2024   audited 12 months ended 31 december 2024 issued ordinary shares at start of period  47,518,103 46,894,697 46,894,697 weighted average number of ordinary shares at end of period  47,657,689 47,047,306 47,283,991   basic earnings per share (p)  unaudited 6 months ended 30 june 2025 unaudited 6 months ended 30 june 2024 audited 12  months ended 31 december 2024 group (p) - continuing operations 3.0 0.7 (83.1)     the company operates share-based payment schemes to reward employees. as at 30 june 2025  and 30 june 2024 , there were potentially dilutive shares options under the group's share option schemes. the total number of options available for these schemes included in the diluted earnings per share calculation as at 30 june 2025 was 1,597,340 and as at 31 june 2024 was 2,014,070. there are no other diluting items. as at 31 december 2024, in line with ias 33, as the group had a negative earnings per share, it is assumed there are no dilutive shares.     diluted earnings per share (p)  unaudited 6 months ended 30 june 2025 unaudited 6 months ended  30 june 2024 audited 12 months ended 31 december 2024 group (p) - continuing operations 2.9 0.7 (83.1)     9. dividends no dividends were paid in 2024 and the directors have recommended an interim dividend in respect of 2025 of nil p (2024: interim dividend of nil p).   10. changes in liabilities arising from financing activities net debt comprises cash and cash equivalents and secured bank loans. secured bank loans consist of a revolving credit facility of £12m which is due to terminate on 31 december 2026. repayments are made periodically depending on the level of free cash flow generated by the group. interest is payable at 2.45% above sonia per annum. there have been no changes to the terms of the revolving credit facility agreement since the year ended 31 december 2024.     set out below is a reconciliation of movements in interest-bearing loans and borrowings arising from financing activities:   unaudited as at 30 june 2025 £000 unaudited as at 30 june 2024 £000 audited as at 31 december 2024 £000 net decrease from repayment of debt and debt financing 1,750 500 2,750 loan arrangement fees 61 65 65 movement in net borrowings resulting from cash flows 1,811 565 2,815 non-cash movements - net release of prepaid loan arrangement fees (23) (29) (62) interest -bearing loans and borrowings at beginning of period (8,966) (11,719) (11,719) interest-bearing loans and borrowings at end of period (7,178) (11,183) (8,966)     set out below is a reconciliation of movements in lease liabilities during the period:  unaudited as at 30 june 2025 £000 unaudited as at 30 june 2024 £000 audited as at 31 december 2024 £000 net outflow from decrease in lease liabilities 97 144 285 movement in net borrowings resulting from cash flows 97 144 285 non-cash movements arising from initial recognition of new   lease liabilities, revisions and interest charges (18) (22) (40) lease liabilities at beginning of the period (1,477) (1,722) (1,722) lease liabilities at end of period (1,398) (1,600) (1,477)   set out below is a reconciliation of movements in member capital during the period:  unaudited as at 30 june 2025 £000 unaudited as at 30 june 2024 £000 audited as at 31 december 2024 £000 movement in member capital liabilities resulting from cash flows 966 923 2,050 non-cash movement: allocations of profits for the year (834) (916) (1,850) member capital liabilities at beginning of period (3,492) (3,692) (3,692) member capital liabilities at end of period (3,360) (3,685) (3,492)       11. discontinued operations   bush & company in 2024, the board announced its intention to explore a potential sale of bush and company which makes up its critical care operating segment and cash generating unit. the board considered the progress of the sales process with reference to ifrs 5, non-current assets held for sale and discontinued operations and determined that the business met the criteria as held for sale as at 31 december 2024. it was therefore presented as a discontinued operation in the statement of financial position at that date.   subsequently, on 19 june 2025, the board announced that the process to dispose of the critical care business, bush & co., had concluded without a sale. the board determined that at this point, the critical care cash generating unit no longer met the criteria as held for sale and, in line with ifrs 5, the prior period statement of comprehensive income has been re-presented to include these results as a continuing operation and the statement of financial position has been re-stated to declassify the assets and liabilities of bush & co as assets held for sale.   a reconciliation of the re-stated statement of financial position to the amounts as previously reported is as follows:                                                       note 31 december 2024 £000 as previously reported re-classification 31 december 2024 £000 re-stated   non-current assets     goodwill  - 15,592 15,592 other intangible assets  177 608 785 property, plant and equipment  236 54 290 right of use assets  1,488 - 1,488 deferred tax asset  20 - 20   1,921 16,254 18,175 current assets     assets classified as held for sale  22,377 (22,377) - trade and other receivables 5 21,750 6,123 27,873 cash and cash equivalents  1,855 - 1,855   45,982 (16,254) 29,728 total assets  47,903 - 47,903 current liabilities     liabilities directly associated with the assets held for sale  (1,813) 1,813 - trade and other payables 6 (12,975) (1,809) (14,784) lease liabilities  (252) - (252) member capital and current accounts  (3,492) - (3,492)   (18,532) 4 (18,528) non-current liabilities     lease liabilities  (1,225) - (1,225) other interest-bearing loans and borrowings  (8,966) - (8,966) deferred tax liability  (52) (4) (56)   (10,243) (4) (10,247) total liabilities  (28,775) - (28,775) net assets  19,128 - 19,128      equity     share capital  119 - 119 share option reserve  5,339 - 5,339 share premium  14,595 - 14,595 merger reserve  (66,928) - (66,928) retained earnings  66,003 - 66,003 capital and reserves attributable to the owners of nahl group plc  19,128 - 19,128       this information is provided by rns, the news service of the london stock exchange. rns is approved by the financial conduct authority to act as a primary information provider in the united kingdom. terms and conditions relating to the use and distribution of this information may apply. for further information, please contact rns@lseg.com or visit www.rns.com.  rns may use your ip address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. for further information about how rns and the london stock exchange use the personal data you provide us, please see our privacy policy.   end   ir eafndaeeseaa return to news summary

Label: Neutral