Call waiting: Enquiries to NAH declining
Law firm consolidation and changes in Google’s search algorithms significantly hit the number of personal injury cases that listed business NAHL passed to both its panel and own law firm last year.
The AIM-listed company that owns National Accident Helpline (NAH) as well as alternative business structure National Accident Law – confirmed yesterday in a trading update that its full-year 2024 results would see revenues of around £39m, 8% lower than in 2023 – as it had warned last year.
Having successfully managed market expectations, its share price actually rose 7% to 73p, its highest figure since last May, with profit before tax in 2024 expected to increase 23% to £800,000.
In more good news, strong levels of cash flow meant the group has “significantly reduced” net debt to £7.1m, down by 27% and more than market expectation.
The consumer legal services division has been hit hardest, with revenues expected to have fallen 17% in 2024 to £23m and underlying operating profit down 29% to £2m.
NAH generated 19,744 new enquiries in 2024, 44% lower than the 35,643 in 2023. Investors were told: “NAH faced several challenges in 2024, namely adapting to significant changes in Google’s search algorithms, the resultant high levels of competition in paid search, and industry consolidation causing reduced panel demand for the group’s enquiries.
“It has become clear that these challenges are neither short-term in nature, nor unique to the Group’s business. In large part, they have resulted from several years of regulatory reforms and lower levels of investment in advertising, resulting in a contraction in the size of the personal injury claims market.”
But the announcement said moves to improve marketing efficiency and reduce overheads had reduced the average cost of acquisition of new enquiries fell by around 30% compared to the peak in September 2024.
This month has seen “further stabilisation in lead generation, albeit with volumes at lower than historical levels”.
New enquiries into National Accident Law fell by 31% to 5,892 (from 8,518) – but as a percentage of all enquiries generated by NAH in the year, the firm’s share rose from 24% to 30%. The firm generated £8.5m in cash from settlements, 29% higher than in 2023.
NAHL’s critical care division, Bush & Co, saw revenue and profits rise, but group confirmed the process of selling it was continuing.
