Atkinson: very encouraging growth

AIM-listed National Accident Helpline plc (NAH) saw income rise by just over 10% in 2014 on the back of a significant increase in enquiries, it reported yesterday.

In a trading update issued ahead of publishing its full annual results in March, NAH said it continued to trade well during the second half “and is expected to deliver strong underlying operating profits for the year slightly ahead of current market expectations”.

Revenue for the full year was up 10.4% to £43.8m. This excluded income from NAH’s demerged PPI Claimline division and a legacy after-the-event insurance product used prior to implementation of the Jackson reforms on 1 April 2013.

The update said: “This reflects robust enquiry growth of 15.3% as we continue to gain market share in the higher value sectors of non-RTA and medical negligence. Cash flow has continued to be strong with the group ending the year with net cash of £1.2m, an increase of £3.2m from the first half.”

It did not provide a profit figure, but the six-month results, announced in September, reported revenue up 6% to £22.1m, with profits up 26% to £6.1m.

Chief executive Russell Atkinson said: “Trading in our first financial year as a quoted company has been very encouraging. Our enquiry growth reflects our strategy of gaining market share and we continue to focus our efforts on the higher value non-RTA and medical negligence sectors.”

The market responded positively to the news, with the NAH share price up 8% to 257.50; it floated at the end of May 2014 at 200p.

Meanwhile, shares at Quindell plc are on the up again after some optimistic forecasts by analysts about the company’s performance in the coming year, with the price increasing 13% just yesterday to 114.5p. It began the year at 47p.