NAHL Group (LSE:NAH) Q2 2026 Earnings Call

0:01 Good morning, good welcome to the NHL Group Plc Interim Results 2026 Investor Presentation. Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged and they can be submitted at any time using the Q&A tab situated on the right-hand corner of your screen. Simply type in your questions and press send. Before we begin, I would like to submit the following poll. I would now like to hand you over to CEO James Sorales. Good morning.

0:26 Thank you Alex and good morning everyone. Yes, I'm James Serrales, I'm the CEO of NHL Group and I'd like to welcome you to our interim results presentation which covers the six months to 30th of June 2026. We released our results on the 30th of September and we're going to give you an overview of those results today and try and answer your questions. Stand next to me today is Chris Hyam, the Group's CFO, and we're going to walk you through a presentation which should be on your screen now, and it's also available on our website, that's www.nahlgroupplc.co.uk. The agenda for the meeting today starts with me taking us through the highlights of 2026, or the first half of 2026, and for those of you who are new to the business, I'll give you a short introduction into who we are and what we do.

1:22 I'll then hand over to Chris to present a financial review, including more detail on our growth and profitability and cash generation. Then we'll go into the business review and dig into the results of each of our two trading divisions in more detail. And finally, we'll finish by talking about a couple of transactions that we've entered into post-period end and provide an outlook. There should be plenty of time for questions at the end. In fact, I think we've had a couple come through already. So if you do want to submit a question, then you can do so at any time. I will try to answer as many of those as we can at the end. So without further ado, let's get started. Excuse me.

2:08 So the Board and I are very pleased with the Group's solid performance in H1. We delivered revenue growth, we increased profit before tax and our cash generation has continued to be strong. We're also able to report progress against the Group's overarching strategy. Highlights include revenue growth of 5% to £18.3 million and we delivered a 31% increase in profit before tax to £2.3 million. Actually, it's important to state now that unless we say otherwise, all the results that we're quoting today are for continuing operations, i.e. excluding the Searchies UK business, which is being held for sale. Free cash flow was again very strong in H1, growing 43% to £2.2 million.

2:53 That was up from £1.5 million last year. And that meant our net debt reduced by 66% from £3.2 million at year end to £1.1 million at the 1st of June. And this was the lowest level of net debt since the IPO in 2014. So a really important milestone for us and a fantastic team effort by our people across the business. So really pleasing federal results across the group. Now we'll return to some of these numbers shortly but I just wanted to share some of the operational highlights across the divisions too. In our consumer legal services division, that comprises our personal injury business, well the division increased revenue by 7% to £9.9 million and underlying operating profits were up 41% to £1.9 million.

3:53 We'll talk later on about how we are encouraged with the progress that we've made against each of the four pillars that form the basis of the growth strategy for our personal injury business, but to briefly call out some of the highlights now. Firstly, we've added over 2,100 new inquiries into our wholly owned law firm, National Accents Law, or NAL, which we estimate are worth £2.9 million in future revenue and cash. Secondly, we settled over 1,600 of our clients' claims in the period. This generated £5.7 million in cash from settlements, which was 6% more than last year. And thirdly, at the end of the period, we were processing 6,623 ongoing claims, which we believe should generate over £11.5 million of future cash when they mature.

4:47 Finally, on our lead generation, National Accident Helpline delivered 11% more inquiries in H1 than prior year. We're investing slightly more per inquiry because they've generated added value for us. If I turn to Critical Care then, Bush & Co has grown its revenues by 3% in the first half to £8.5 million and they generated £2.6 million of underlying operating profits. That's broadly in line with last year. Demand for Bush's Expo Witness services remains strong, and revenues for this service line increased by 11% in the period, and new instructions increased by 22%, guaranteeing a strong pipeline of future reports.

5:32 The case management market continues to be challenging, and our revenues were down 8%, but management are taking positive action, which I'll expand on later on, including in our exciting Bush & Co Kids proposition, which grew by 6% in the first half. Finally, Bush & Co Care Solutions grew its revenues by 20% to half a million pounds and increased the number of standalone care packages we provided. So those are the highlights for H1, but before I hand over to Chris to talk about the results in more detail, I said I'd provide a brief recap of who we are and what we do for those who are new to the business. So, NAHL is a leader in the UK in consumer legal services and catastrophic injury markets. We help people who've had an accident or suffered medical negligence that wasn't their fault to get their lives back on track.

6:28 And in our 30 plus years history, we've helped over a million customers access over a billion pounds in compensation by providing legal support and rehabilitation services. We do this by providing services and products to individuals and businesses through our two divisions, which I've mentioned. We call them Consumer Legal Services and Critical Care. And in Consumer Legal Services, we're one of the UK's leading providers of personal injury advice, services and support. We have a strong heritage in this market. In fact, we've helped more people injured in accidents in the UK than anyone else. Through our trusted brands, including National Accent Helpline, we guide accident victims through the steps of making a personal injury claim.

7:14 We triage those claims, and for those we think have legal merit, we either process those claims in our own fully integrated law firm called National Accent Law, or we pass them to one of our panel of specialist third-party law firms, or we process them in our joint venture, which is called Law Together. Now, distributing these claims to the panel provides us access to quick profit and cash, which firms typically pay in 30 days. However, appetite for this service has declined over the past 10 years due to regulatory pressures on law firms and market consolidation. And that ultimately led us to launch in NAL in 2019. If we process these claims ourselves in NAL, then we achieve higher levels of profit, but with a longer working capital cycle, as these claims can take over two years to process on average. The joint venture helps us to balance these two extremes.

8:08 In our other division, Critical Care, our Bush & Co business is a market leader in expert witness reports, immediate needs assessments, and case management rehabilitation services in the UK. And this year, our Bush & Co business celebrates a milestone birthplace, having served its customers with distinction for over 40 years. We support children, young people and adults following a catastrophic injury or clinical negligence and Bush & Co deals with the most serious injuries often leading to life-changing disabilities and these include acquired brain injuries and spinal cord injuries and claim settlements usually run into the millions so very complex very serious injuries we also launched an award-winning care proposition in 2021 which is growing rapidly and offers services for customers who directly employ nurses and carers generally in their own homes and typically after their claim has settled.

9:11 So those are our two trading divisions and we also have a centralised shared services division which provides strategic leadership and support with funding and governance and over the years we've built an inclusive and supportive employee culture with a strong focus on engagement, and that helps us to recruit and retain the top talent across the UK. We're proud that we've been recognised externally for this culture. We've been awarded the gold standard by investors and people and included in the best small companies list in recent years as well. Finally, just to mention, we also operate a small but profitable property searches business called Searchers UK, which is in the process of being disposed of and I'll provide an update on that a bit later on.

9:59 So hopefully you should have a good overview now of who we are and the progress that we've made so far this year and I'll now hand over to Chris who's going to take you through a review of the financial results. Chris. Thanks James.

10:14 Okay I'll start with the P&L and as James mentioned in the highlights we had a strong first half overall. Revenues of £18.3 million were 5% higher or £0.9 million higher than the previous year. both businesses that have a growth with personal injury up 7% and critical care business up by 3%. Underlying operating profit increased by 0.4 million to 3.4 million and this growth was driven by the personal injury business which increased its operating profits by 0.6 million or 41% to 1.9 million in the period and this was primarily as a result of continued strong case settlements in national accident law. Profits from critical care were flat at £2.6 million although that does include some investment in headcount in the second half of 2025 which has positioned the business well for growth.

11:00 Shared services costs were £0.2 million higher than last year and this is largely driven by bonus accruals and we incurred £43,000 in exceptional costs in the period relating to the sales searches you pay.

11:12 We expect these to climb to around £75k once the completion goes through on the transaction.

11:18 Non-patrolling interest in our joint ventures were 0.1 million higher than last year and this is as a direct result of increased profit generation in the JVs and net interest is 41% lower than last year reflecting the lower levels of net debt that we've seen compared to this time last year. And this all resulted in a profit for tax of 2.3 million, 31% or 0.5 million higher than the same period last year with basic EPS of 30% to 3.5 pence. Moving on to cash, and it was another strong performance in cash in the first half. Cash generated from operations grew 22% to 3.9 million, with operating cash conversion at 113%. That was 11 percentage points higher than last year, and both divisions delivered cash growth.

12:05 Consumer Legal Services, which for cash includes any cash generated from searches you pay, generated 2.3 million of cash from operations, and 1.5 million of cash after payments to LLP members. This was double the amount we saw last year. and again this is due to the continuous shock settlements that we've seen from cases in NAL which contributed to this contributed to this cash performance and we saw cash and settlements up 0.3 million in the period that's a 5.7 million operating cash in critical care that's also strong it was up 0.1 million to 2.4 million and that was an operating cash conversion of 93% in line with the levels we saw in 2025. After exceptional costs, interest, tax and capex, the resulting free cash flow is $2.2 million. The same deadline, that's an increase of 43% and has taken our net debt down to $1.1 million at the end of the period, the lowest we've seen since the IPO in 2014.

12:57 Looking ahead, with the start of searches and the recent settlement of the contract dispute, we expect the group to move into a net cash position in the short term.

13:11 National Actions Law and its associated brands form an integrated, high-quality, high-volume legal services ecosystem that converts inquiries into cash through our proven, scalable operating model. We do this by focusing on leveraging our market leading brands, by improving the unit economics and by providing exceptional service to our customers. through targeting market leading levels of productivity. Now I'm not going to dig into everything on this page but as I mentioned earlier on we've developed a clear growth strategy built on four pillars. So firstly we aim to generate high quality work by leveraging our market leading brands to build strong brand trust and demand. National Accent Healthline is one of the sector's most trusted brands generating high numbers of quality in-brand leads which are then triaged in our call centre in Kettering. We'll explain a bit more about the flow of leads on the next page, but it was great to see growth in the number of inquiries we generated in H1 for the first time in a little while, actually.

14:22 The second pillar is about growing value in NAL to increase profitability and sustainability of the model. So scale is a really important factor for us because it helps us offset the fixed costs of running the law firm. So the cost of compliance, premises, and finance, insurance, etc. At the end of June, NAL was processed in over 6,600 PI claims, which we anticipate will generate future cash receipts of over £11.5 billion. The third pillar is to deliver exceptional customer service that drives customer advocacy and trust, which then creates a positive feedback loop into our marketing. and both NAH and NAL are rated excellent on Trustpilot and that site states that our customers consistently highlight the exceptional customer service that they receive from our team and that our staff are there to support them when they're vulnerable and need help and that's something that we are incredibly proud of. The final pillar is tech and productivity which is really important to drive profitability in a fixed cost legal environment.

15:29 So by industrializing the processes and shortening cycle times and applying data discipline to our work, we can treat claims more like a managed portfolio than individual bespoke matters. And this helps us to manage our risk. It improves our ability to forecast and cash conversion as well. So what that means in practice is we look at claims in cohorts and we track their behavior and outcomes. And that helps us to predict future performance. Chris is going to talk a little bit more about that later on about how we track cohort performance and the results that we're seeing from that. Finally when it comes to technology we're seeing the benefits of our work to refine processes and systems that helps us to drive down the claim settlement cycle and drive up the average claim values and that's great news for our customers and it also helps us to manage our working capital.

16:25 It's probably worth adding a point around AI, which is so topical at the moment. So AI tools are now part of many of our team's daily workflows, whether that's in marketing for building creative assets, social media, whether that's in our helpline team for triaging customer calls, in IT for deploying code and building APIs for our website, or in legal where we use AI for research. So like most companies out there, we're developing an ongoing program of change and I think we're well-placed for further AI development, but we always have a human in the loop providing supervision and the expertise that we're known for. So that's all I'll probably say on that.

17:11 So if we delve a little bit deeper into a couple of the strategic pillars that really drive value, we'll start first of all with generating high quality work. So through our market leading brands, including National Action Helpline, the business generated 7,256 new inquiries in the first half of the year. Now an inquiry, just to remind you, is a lead that we've generated through our own website, or by a paid search, or through one of our partners, and that has been triaged by our Helpline call centre. And we think that that lead meets our claim criteria and has legal merits. We then choose whether we want to process that ourselves in NAL or place it into our panel or our joint venture altogether.

17:59 Now the number of new inquiries that I mentioned earlier on was 11% higher in the first half of last year and you can see that progress that we've made in the chart on the top right. The average inquiry cost for the period was actually 8% higher than the prior year, and that reflects inflation in the cost per click on Google Ads and the incremental cost of testing several new marketing channels that we've been working with in this past six to 12 months. And you can see that in the chart on the bottom right of the screen, where I've indexed the acquisition cost against the 2023 average cost. So we're witnessing a little more cost and we're essentially investing a little bit more per inquiry than previous years but pleasingly during this period we've witnessed an increase in the quality and therefore value of those inquiries that we've generated and this is reflected in the more valuable mix of work that we are generating including the 13% increase in employers liability cases compared to last year.

19:03 This is good news as these claims are worth more to us and it demonstrates that we are more effective in targeting those accident types in our marketing campaigns. So that's a little insight in our ability to generate new enquiries. Next I want to turn to where we distribute those inquiries and we placed just over 2,100 inquiries into NAL and H1, so a similar number to last year, slightly fewer but that was driven solely by the mix of work that we generated. And we grew volume into law together from 1,610 to 1,840 inquiries and the balance then of those inquiries went into our panels of third-party law firms.

19:48 And within that number that was placed into NAL, other than the very smallest claims, we took all of the road traffic claims, the RTAs, into NAL, and we're gradually building up the number of non-RTA inquiries that we're taking in. We'd like to take more, but we need to recruit more non-RTA fee earners, and this will also require a working capital investment. It's something that we need to manage carefully, but we're quite pleased with how that's progressing at the moment. So on that note, I'll now hand back to Chris, who's going to provide an update on the second pillar of value creation in NAL, and that's the performance of the claims book.

20:29 Thank you, James. Yes, James said this is the processing side of the law firm, of the business. So the inquiries that are passed across the national acts of the law, that this tracks how they're performing. And for any of you who've seen our previous IMC presentations, you'll likely be familiar with the slide that's on the screen.

20:46 which shows the evolution of the law firm since its inception in 2019 and the progression of the cases we've put through in that time.

20:54 For those who are less familiar, I'll take a moment to explain what the chart is showing. So what we're tracking here is the expected value of new claims added in a period to cash generated over time alongside any adjustments to our estimates. The orange bars, they represent the revenue in cash that we expect to generate from new cases added into an AL when they ultimately settle. The pink coloured bars show the amount of cash collected from settled cases in a particular year, and the green and red bars show any adjustments made to our estimates for the value of the cases that we processed. Finally, the purple bars show the expected future cash to come from open cases at the different balance sheet dates. So as an example, over to the far left hand side of the chart, you'll see that the new cases added in 2019 we believe will generate 2.3 million in future revenue in cash.

21:41 These cases can take a number of years to settle and for the cash to come through. You'll see that in the first year, in 2019, we generated $0.2 million in cash from those settled cases and that meant we closed out the year with an open book worth $2.2 million in future cash. As you look through the following years you can see that as we grew volume into the law firm we steadily grew the value of the cases alongside the amount of cash that was generated also. and what you see is that working capital cycle starting to catch up. This cycle largely matures in 2023 where the value of new cases added was 6.6 million, again 6 million collected on settled claims. Since 2023 we've provenly managed working capital to drive down lead debt and the number of enquiries placed into NAL has therefore reduced.

22:27 This has meant the amount of cash generated from cases started in previous years has exceeded the value of new claims being taken on. That was also the case in the position in the six months of June this year, where we placed enquiries into NAL that were expected to generate 2.9 million in future revenue in cash, but at the same time collected 5.7 million from cases that settled in periods. Partially offset this, we revalued the book by 1.3 million, and this is owing to strong performance from our mature cohorts, and it continues on from sizable revaluations that we saw in 2024 and 2025, which were as a result of damaging inflation, but also processing tactics around incubation At the end of June, the future cash to come from open cases is $11.5 million, $1.5 million lower than at the end of December.

23:22 The following couple of slides, these provide an alternative view of the life cycle of the cases and they focus in on the particular years of enquiries that were placed in. So if you look at this first page, this shows the 2019 and 2020 cohorts and you'll see where you'll see lower cash values generated in the most recent six months. So we generated $0.1 million of cash in the most recent six months across those two cohorts. These cohorts have now pretty much reached the end of their life cycle but I still think they paint an important picture as to how the book has matured over time. The top chart shows the new claims taken on in 2019. At the time we expected those cases to ultimately generate 2.3 million of revenue in cash but as time has progressed the cases have outperformed those expectations which so far generated 3.3 million cash from those settled claims.

24:17 There is still a small number of claims left to conclude and we expect those to generate around £4.1 million meaning ultimately the cohort will deliver £3.4 million across its lifecycle and this has meant a £1 million positive revaluation against our initial expectations. If we look at the bottom chart relating to 2020 it's a similar story. New cases were added with an expected value of £3.8 million. To date £5 million has already been collected. We expect a further $0.1 million to come through from these, resulting in a $1.3 million brief valuation overall. If I jump ahead to 2021 and 2022, there's a few more cases open on these cohorts, but again, that picture has kind of continued as we've moved through.

25:03 You'll see on the top chart in 2021, you'll see the initial valuation of $6 million has since been increased to $2.5 million, so $8.5 million overall. and against this 8.2 million has already been collected with 0.3 million still expected to come through from those remaining open cases and finally we saw particularly strong performance from the 2022 cohort in the six months to June generated 5.9 million of revenue. It's so far generated 7.9 million of cash including 1.1 million in the past six months alone and that's resulted in a revaluation of 800k in the period to 8.7 million. Overall, it's really pleasing to see the work our teams are doing to maximise the value generated from the claims we're processing into NAL.

25:51 Despite this, the number of cases placed into NAL over recent periods will mean that we expect case revenues on an absolute basis in NAL to be lower over the coming periods as the case cycle reflects the new case levels. Back to you James.

26:05 Great, thanks Chris. So some great results there for us being able to demonstrate growth in those cohorts but also some fantastic outcomes for our clients as well. Let's now turn our attention then to our other operating division which we call Critical Care. And if I turn the slide on again, there you go. So our award-winning critical care business, Bush & Co, is a brand leader in this market. After quite a challenge in 2025, Bush is having a pretty solid year in 2026, and the team are working on a number of projects that pave the way for enhanced growth over the next few years. As I said earlier, revenues in Bush and H1 grew by 3%, and underlying operating profits were broadly flat at $2.6 million.

27:00 The business operates with a very healthy 30.5% operating margin and grew cash from operations to £2.4 million in the first half. Now for the past few years, Expo Witness Services has been the largest segment of Bush & Co and we are the largest provider of Expo Witness reports to the UK catastrophic injury and complex care sector. Demand for Bush's expert witness services remained really strong in the period and revenues increased by 11%. The number of reports actually only grew by 2% to 736, with revenue growth largely derived from inflationary price increases that we implemented last year.

27:49 Now this was a bit of an anomaly this year, the relatively low growth in report numbers, but that was due to the higher than normal number of amendments that we made to issue reports in the period. Now these amendments are effectively add-on pieces of work that our customers ask for us to do to enhance the reports of the issue and we charge separately for them. However, because we're constrained by associate capacity, that means that if we're working on the amendments, we're not able to deliver as many new reports. But we still have a large pipeline of report instructions to work through and that gives me confidence that we should see growth in report numbers in this part of the business in the future.

28:34 In fact the number of new instructions in the first six months increased by 22% to 817 which as you can see from the chart is the highest that we've ever received in a six month period. This was driven by an increase both in the number of inquiries from customers but also an improvement in the conversion rate of those inquiries into instructions. As I said the number of reports we issue every month is still constrained by associate capacity and we continue to seek new ways to attract more associates to Bush & Co. We currently work with 195 experienced expert witnesses across England and Wales and we're actively developing new technology aimed at increasing capacity from our existing associate base and speeding up throughput whilst maintaining the highest quality reports that Bush is known for.

29:26 We're hoping to bring that technology online over the next few months, and I look forward to updating you on its impact when we report next year. Finally, on this page, we are very proud that 100% of the customers that we surveyed over the past 12 months, the 30th of June, said that they would be happy to instruct us again. So clear demonstration of the fantastic service that our teams provide in this area. So if I turn to case management, well, in case management, the market remains more challenging. We've talked about that in the past, and in the period, our revenues were down 8%. As I have discussed previously, over the past few years, we've witnessed a deterioration in the number of new instructions for initial needs assessments or INAs, a reduction in the average invoice value for ongoing case management, and a reduction in the number of cases billed each month.

30:25 We've also seen an increase in the rate of discharges from ongoing case management as well. So those are all challenges that we're facing at the moment. And INAs are a one-off piece of work. So they're a report that we issue into an assessment of a client's condition and their future needs. And they're important because they often convert into ongoing case management. And that represents recurring revenues for Bush & Co. So in terms of how we performed in H1, the business delivered 188 INAs in the period, which was down 10% on last year. However, average invoice value was actually marginally higher than last year. And at 30th of June, we were delivering ongoing case management services to a large number of clients, 1069 clients in fact, and that's where we earn recurring revenues, as I mentioned.

31:20 So case management remains challenging. And anecdotally, it appears that this challenge is similarly impacting our peers across the industry. Now in response to these challenges, the management team are adapting the business model to deliver a higher proportion of services to customers through our employed case management team, whilst retaining a smaller network of specialist associate case managers for the more complex cases. And this change should enable us to have more control over fulfillment of demand and ultimately drive higher margins in the medium term. So we're part way through implementing this change and we anticipate completing this transition fully by early next year.

32:05 And I look forward to updating you more on our progress with that in due course. Earlier in the year, I also talked about our Bush and Koch kids proposition, which I'm pleased the report has been growing. We have targeted growth in children and young people cases because they are generally more complex cases and they require more specialist case management support for longer. So over time, this should result in higher levels of monthly billing and longer case durations as well. As I suggested, the news is good in this area in that revenues for Bush & Co. kids increased in the period by 6% and the number of INAs actually increased by 133%. So the team have been invested in marketing campaigns to raise awareness and going out and speaking to potential new customers about our proposition and this is clearly paying dividends.

32:59 So we remain optimistic for future growth for this proposition. Finally, in Critical Care, Bush & Co Care Solutions continued its strong growth trajectory with revenues up 20% in H1. So it's been just over four years since we launched this service from scratch and we anticipate breaking through the million pound revenue barrier this year. The number of ongoing care packages which results in monthly recurring revenue increased by 29% in the period compared to last year. And we're progressing options to accelerate this growth even further over the next few years by providing more services to our customers. So I'll share more details on that in the year.

33:52 So that's a quick overview of the results for the first half of 2026. But before I go into the outlook, I'd just like to update you on the proposed sale of Searches UK. So we announced on the 27th of August that the group had entered into a binding conditional agreement to sell Searchers UK to TM Group, who are a trade buyer in the residential property market. And just to remind you, Searchers UK has been part of NEHL since 2016, at a time when we had other residential property businesses, and it's a leading supplier of residential and commercial property conveyance and searches and services to conveyancers and solicitors in England and Wales. Now clearly this business is not in our core markets of personal injury and catastrophic care and so the sale will allow the group to focus on those core markets.

34:46 We've agreed an enterprise value for Surges UK of 1.2 million and that equates to an EBITDA multiple of 5.25 times and after the normal completion adjustments we expect to receive around 1.1 million in cash on completion. Now there are a number of conditions for the sale that included the approval of the CMA which I can update has now been satisfied and so we look forward to the sale completing shortly. The net proceeds will be allocated against the Group's revolving credit facility which will reduce our borrowing costs and I strongly believe this disposal is a good outcome for shareholders and it also aligns with the Board's ongoing work to accelerate value for shareholders.

35:37 And since the 30th of June, in Consumer Legal Services, well, on 28th of September, we announced that the group had settled a long-standing contract dispute for the supplier for £1.85 million. And this amount is due to be paid to NHL on or before the 15th of October, 2026. And because of the uncertainty associated with this dispute, we've not previously accrued this income in our financial results, nor included it in our forecasts. So this is very positive news and contributes significantly to our cash forecast for the second half of the year. I'm also pleased to report that trading in July and August was encouraging in consumer legal services.

36:23 NAH generated 2,583 new inquiries. That was 5% more than the same period last year. We continue to invest slightly more in acquisition costs, but that continues to be reflected in the quality and therefore the future value of the mix of work that we're attracting. And in NAL, we've previously said that we anticipated NAL settling slightly fewer claims than last year due to the claims book having contracted, as Chris talked about earlier on, as we've prudently managed working capital over the past couple of years. And it did settle 3% fewer claims in July and August. But pleasingly, cash from those settlements is actually up up 22% in fact to 1.8 million pounds really demonstrated the growth that we've been able to drive in average settlements and in critical care trading in July and August was actually quite similar to last year we issued 226 expert witness reports so very similar to 2025 and we received slightly more instructions to add to our already strong pipeline In case management, we did a very similar number of INA reports, but the number of INA instructions was up by 28%. That's really encouraging and we expect those to translate into more INA reports over the coming few months.

37:48 And hopefully a good amount of those will go on to generate recurring revenues through ongoing case management as well. So an encouraging picture of the past couple of months. So there you go. To summarise the first half, the group performed well with 5% growth in revenues leading to a 31% growth in profit before tax. Cash generation, as we said, was also strong with free cash flow up 43%. And as the subheading on this page sets out, further good news since the half year has caused the board to upgrade its previous expectations for the 2086 downturn and we now anticipate being in a net cash position by the end of October, for the first time since IPO.

38:34 To finish, I'd just like to reiterate that as previously announced, the Board continues to actively explore strategic options to accelerate value for its shareholders and it's reviewing the Group's capital allocation policy. The Sales Searchers UK is an important step in this process and the Board continues its dedicated work in this area and I look forward to providing further updates in due course. So that brings the formal presentation to an end. I'd like to thank you all for joining Chris and I today for NAHL's interim results for 2026. We've got time to take some questions, but for the moment, I'm going to hand back to Alex. That's great. Thank you very much indeed for your presentation.

39:19 Ladies and gentlemen, please do continue to submit your questions using the Q&A tab situated in the top right corner of your screen. While the company take a few moments to review those questions submitted today, I would like to remind you that a recording of this presentation, along with a copy of the slides in the published Q&A, can be accessed via your invested dashboard. James, as you can see, we have received a number of questions. and if I may now hand back to and kindly ask you to read out the questions where appropriate to do so and I'll pick up from you both at the end. Thank you.

39:47 Okay thank you Alex just reviewing the questions so we'll start with quite a few questions in so thank you for that really appreciate that engagement. This starts with the first question which says congratulations on the results thank you on NAL Its share of inquiries dropped in H126, which is disappointing. It looks like moving the mix away from the JV to NAL is a clear way of growing free cash flow significantly, given how much is lost partner growing, so it's about £8 million it says in the past three full years. Is there a plan to route more placements to NAL over time, and if so, what medium term share are you targeting? is there a contractual route to buy an out or a structure in the JV and do you think the whiplash post implementation review could have a material impact on the dynamics here? So thank you for the question and I think that's actually three questions and we'll try and break our answer down as such.

40:45 So Chris, why don't you take the first part of that on NAL?

40:49 Yeah, sure. In terms of placement into NAL, I think James touched on this a bit in his presentation on the results as well. The dynamic is one of mix really, so NAL is predominantly an RTA focused law firm, whereas the joint venture is solely non-RTA focused. We did see in the first half of the year that non-RTA mixed enquiries grew, 43% of overall enquiries, and that compared to 39% last year, whereas RTA has been increasing the volume of non-RTA cases taken into NAL in recent months. Actually across July and August we've already placed more Non-RTA enquiries into NAL than we did across the whole of the first half.

41:45 So we are seeing growth come through, but we do have to manage that situation carefully. The way that non-RTA cases behave and the specialisms required to process them is different to an RTA case. So we need to build that capability in NAL to match the volumes that we're able to take on. What we're really talking about there is the number of non-RTA feedback that we're able to bring into the business. That takes some time and it's actually been quite a difficult market to recruit a qualified quality SB earner this year. That said, we are actively recruiting and the remainder of that plan is to continue that growth in the short to medium term.

42:21 Okay, thank you Chris. So secondly, on buying out or restructuring the joint venture, there isn't a mechanism for that in the contractual arrangement we have with the joint venture partners, but anything is possible, I'm sure. That being said, the joint venture actually gives us the opportunity to balance the working capital demands of processing a claim of our joint venture partner, HCC Solicitors. They're funding the daily costs of those fee earners and managing the case and also they're taking the risk of case success in that way as well because we pay them a processing cost only on successful cases. I'd also say that HTC are doing a great job in law together, and I'm not sure whether that would be the best use of all our capital at the present time.

43:10 But as I said earlier, the board are looking at all the options available to us to deliver value for shareholders, and we'll update you on those proposals in due course.

43:19 So finally, the third part of the question was around the whiplash post-implementation review.

43:24 And just for the benefit of other investors who aren't as familiar with this, this is a review being carried out by the Ministry of Justice, the MOJ, on the impact of the 2021 Civil Liability Act reforms, which were extremely significant across the sector. As with the reforms themselves, the results of this review are actually late coming out. I'm sure that they will confirm the points that we've been saying for some time, that the reforms were great news for insurers, but they didn't really meet the objectives of consumers, and an access to justice gap really remains. But in terms of the impact on NAL, to be honest, I don't currently anticipate any significant changes coming out of the review.

44:11 We'll obviously look carefully at the outputs when that comes, and we'll see if we need to make any changes to optimize the business. Structure but my take at the moment is that it's unlikely to be significant. We contributed to that review through our trade body and so we'll see what happens when that comes out but I'm not really expecting a huge change at the moment. More broadly, if I can just talk broadly about regulatory or industry change, there isn't really anything major that we see ahead of us at the moment. There's some talk about the portals that we use being combined, so that's the MOJ portal and the OIC portal for the very smallest claims. a combination of those two. We see that as a positive that would drive further efficiencies but that's still in the very early stages of being discussed so nothing major on the runway ahead of us.

45:07 The next question is about net debt. So as net debt is seen as zero net debt apologies is soon approaching Do you have an internal return hurdle for reinvestment? Do you have any idea of incremental return from investing in NAL versus JV versus case management versus expert witness reports? It looks like reinvestment in some areas of the business could offer very strong returns. Well, thank you for that question. It's one that we're discussing internally at the moment. As I said earlier, the board is actively exploring strategic options to accelerate balance for shareholders and it's reviewing our capital allocation policy, which is even more relevant today as we're about to pivot from a net debt to a net cash position, which opens up some new possibilities.

46:00 So I think it's a very pertinent question. Our work includes where to focus our investments in order to get the best return and we're also considering not just the current return levels but things like the payback periods and the sort of lock up of that working capital and also demand levels in the markets that we operate in as well. So I can't say much more about this today but I do plan to come back with an answer to this question in due course as we share more details about the output of that review. So I will come back to this in the future. The next question is about the UK judicial system. So how is your business impacted by the backlog of cases in the UK judicial system? So we are impacted. Actually most of our Plc Plc Plc 12, 24 months than we had previously. And that's driving a lot of the great returns that Chris talked about. So that is really important.

47:22 It's challenging for our customers when the average time to get a court date sort of approaches a year and it varies across the specific court in question. And that can be quite difficult sometimes for them to wait after they've had their injury and they're trying to get their life back on track and they've got bills to pay. Having to wait for a settlement is quite difficult. Challenging and sometimes they prefer to settle rather than go all the distance So yeah, obviously our preference would be to try and drive that That sort of court settlement time scales down that would be better for us as a business. It would be better for our for our customers and that's that all forms part of the Access to justice gap that I think exists at the moment So thank you for that question The next one is about shared costs. So the question is how much of the shared costs can be directed back to the divisions.

48:20 Do you want to take that one Chris? Yeah sure. The shared costs there, they're largely related to the listing of the business essentially. So it includes the board, it includes the cost of myself and James. There are some group insurance policies in there, things like public liability insurance etc. but not the specific insurances that are required for the law firm. They're captured within the business unit already and there's more defeats as well. So largely it's all related to the listing. There are portions of the minor changes time that are focused on the personal injury business than on the critical care business. We have a dedicated managing director in the critical care business. We don't have one on the personal injury side.

49:05 So there will be some allocation of our time onto the PI business. And lastly, outside of myself and James, it's fees related to the listing of the business listening and being a public business.

49:19 Thanks, Chris. Do you want to take that one in a minute? Yeah, sure. And I'll cover those. So we've got a couple of questions now which return to the strategic... The first one is from Daniel, thank you for the questions. The first one says once NAHL enters net cash, what are the realistic capital allocation choices? Buyback, special dividends, tender, M&A or investment into NAHL? The next question is when you refer to strategic options to accelerate shareholder value should investors still regard a sale or separation of Bush & Co as a possible outcome or has the board definitively moved on from that after the 2025 process?

50:33 I think we are looking at the composition, the future composition of the group and what's the optimum composition. We are thinking about potential of M&A as I mentioned earlier on. We're not actively working on a potential disposal of Bush & Co. We said in 2025 that that didn't work out at the time and we've moved on from that. That remains the case. I think Bush & Co. is a great business. I think it forms an important part of the group as we've talked about earlier on. It's a very profitable business and we are working on a number of projects in that business to accelerate growth into the future. The next question is one around working capital.

51:19 So Matt has asked, could you discuss how data days are moving? Chris, do you want to take that one? Yeah, sure.

51:25 Thanks, Matt. I guess there's quite a lot of moving parts sitting underneath that question. So if I start with the critical care business, I'd say it's largely in a mature state in terms of its cash generation. You can see that from the operating cash conversion that we saw in the first half. That's consistent with levels we saw across the whole of 2025. There are different payment terms for the different products within Bush & Co. As I say, they're largely on a mature footing now, so we don't see too much movement in that space. A couple of different revenue streams there, so anything to do with the panel is paid the following month, so quick hash on the panel side of things.

52:10 In terms of the law firms and the JV, that's linked directly to the caselings essentially, and the different pockets within there. So the portal cases, so the cases that go down the small claims route or through the MOJ portal. We're seeing those speed up. It's an area we focus on quite a lot and we're doing all we can from the elements we can control in that process to speed up cash correction. But from the end up non-litigation side, where those cases are requiring an allocation of a court date or even going all the way to trial We have seen the blade over the last couple of years as the backlogs in the course of that process. That said, I think across the piece in the law firm, we have seen an acceleration in cash collection coming through across the piece.

52:57 It's just not always within our control.

53:02 Thanks Chris. Okay, that's all of the questions that have been submitted so far. So thank you. I'd just like to thank everyone for joining this call today. It's great to have so many people join in and have such strong engagement. Thanks for the questions. Really enjoyed that. But for now, I'm going to pass back to Alex. That's great, James, Chris. I was, James, going to ask you some closing comments, but I think you have well delivered those. So thank you very much indeed for updating investors today. Could I please ask investors not to close this session as you'll now be automatically redirected to provide your feedback, which will help the company better understand your views and expectations. On behalf of the management team, we would like to thank you for attending today's presentation and good morning to you all.