NAHL Group Plc (NAH) AI Stock Analysis

• Market Cap: £19.58M
• Dividend Yield: N/A
• Average Volume (3M): 46.28K
• Price to Earnings (P/E): 34.9
• Beta (1Y): 0.64
• Revenue Growth: -4.96%
• EPS Growth: -4798.26%
• Country: UK
• Employees: 282
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 0.03
• Shares Outstanding: 48,226,105
• 10 Day Avg. Volume: 82,202
• 30 Day Avg. Volume: 46,282
• PEG Ratio: <0.01
• Price to Book (P/B): 1.78
• Price to Sales (P/S): 0.88
• P/FCF Ratio: 6.96
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £42.00
• Price Target Upside: 2.44% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 43 Neutral
• Price Target: 42.00p ▲(2.44% Upside)

The overall stock score is primarily impacted by poor financial performance and valuation metrics, with bearish technical indicators further weighing down the score. Despite strong earnings call results, the fundamental financial challenges and negative valuation metrics are the most significant factors affecting the stock's outlook.

NAHL Group Plc Business Overview & Revenue Model

Company Description

NAHL Group Plc, together with its subsidiaries, provides products and services to individuals and businesses in the consumer legal services and catastrophic injury markets in the United Kingdom. The company operates through two divisions, Consumer Legal Services and Critical Care. It offers outsourced marketing services and products to law firms; and claims processing services to individuals. The company also provides specialist services in the catastrophic and serious injury market to claimants and defendants, such as expert witness quantum reports and nursing liability reports; immediate needs assessments; case management services for short or long term needs; vocational rehabilitation services; and behavior assessment and management services for children and young people. In addition, it offers property search services through SearchesUK. NAHL Group Plc was founded in 1993 and is based in Kettering, the United Kingdom.

How the Company Makes Money

NAHL Group generates revenue through a combination of fixed fees and performance-based income from its legal services. Its primary revenue streams include referral fees from law firms, revenue from the management of claims, and fees from the provision of marketing services to legal professionals. The company has established significant partnerships with various law firms, allowing it to leverage its marketing expertise to drive client acquisition for these firms. Additionally, NAHL benefits from a strong brand presence and invested in innovative technologies to enhance its service offerings, further contributing to its earnings.

NAHL Group Plc Financial Statement Overview

Summary

NAHL Group Plc faces significant financial challenges, with declining revenue and profitability impacting the income statement. The balance sheet shows a stable yet shrinking equity base, while cash flows are under pressure due to negative net income despite strong operational cash generation. The company needs to address its profitability issues to improve its financial standing and ensure long-term viability.

Income Statement

The company's revenue has been declining over the past few years, with a noticeable decrease from 2019 to 2024. The Net Profit Margin is negative in 2024, highlighting ongoing profitability issues. Gross Profit Margin has also decreased, indicating challenges in controlling costs. Overall, the income statement reflects financial instability with declining revenue and profitability.

Balance Sheet

The balance sheet shows a stable equity position, with a Debt-to-Equity Ratio of 0.55 in 2024, which is reasonable for the industry. However, the Total Assets and Stockholders' Equity have decreased significantly from 2019 to 2024, reflecting a shrinking asset base. The company maintains a moderate Equity Ratio, suggesting a decent level of financial stability, but the declining asset and equity trends are concerning.

Cash Flow

The cash flow statement reveals fluctuating Free Cash Flow with a decline in 2024 compared to previous years. The Operating Cash Flow to Net Income ratio is strong, indicating good cash generation relative to net earnings. However, the Free Cash Flow to Net Income ratio is volatile due to negative net income in 2024, suggesting potential liquidity pressures. Overall, while operational cash generation is solid, the negative net income poses risks to cash flow sustainability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	38.80M	42.19M	41.42M	38.95M	40.88M
Gross Profit	18.37M	18.71M	16.19M	15.92M	17.33M
EBITDA	-36.71M	3.32M	6.48M	5.91M	6.42M
Net Income	-39.29M	384.00K	385.00K	156.00K	-225.00K
Balance Sheet
Total Assets	47.90M	91.91M	96.21M	97.87M	101.08M
Cash, Cash Equivalents and Short-Term Investments	1.85M	2.01M	2.65M	2.46M	3.61M
Total Debt	10.44M	13.44M	17.93M	20.11M	22.34M
Total Liabilities	28.77M	33.85M	38.89M	41.25M	45.02M
Stockholders Equity	19.13M	58.06M	57.32M	56.62M	56.06M
Cash Flow
Free Cash Flow	4.89M	7.20M	5.74M	4.52M	9.95M
Operating Cash Flow	5.08M	7.51M	6.02M	5.14M	11.04M
Investing Cash Flow	-130.00K	-339.00K	-3.56M	-4.04M	-5.56M
Financing Cash Flow	-5.11M	-7.82M	-2.26M	-2.25M	-4.43M

NAHL Group Plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 41.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:NAH, the sentiment is Negative. The current price of 41 is below the 20-day moving average (MA) of 49.94, below the 50-day MA of 51.82, and below the 200-day MA of 59.34, indicating a bearish trend. The MACD of -3.23 indicates Positive momentum. The RSI at 27.12 is Positive, neither overbought nor oversold. The STOCH value of 4.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:NAH.

NAHL Group Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SYS1	74 Outperform	£29.82M	6.67	36.26%	2.34%	24.67%	119.90%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
CAU	60 Neutral	£60.14M	9.61	-32.35%	4.26%	-13.72%	-361.92%
TMG	53 Neutral	£21.29M	20.18	-3.81%	―	-25.20%	78.55%
EBQ	52 Neutral	£18.42M	―	-37.24%	―	-0.79%	-100.22%
NAH	43 Neutral	£19.58M	34.88	-96.35%	―	-4.96%	-4798.26%

NAHL Group Plc Corporate Events

NAHL Group Issues New Shares Following Employee Option Exercise

NAHL Group plc has announced the issuance and allotment of 25,000 new ordinary shares following the exercise of share options by certain employees. This move will increase the Group’s total issued ordinary share capital to 48,201,103 shares, all with one voting right per share, potentially impacting shareholder calculations under the FCA’s Disclosure Guidance and Transparency Rules.

NAHL Group Reports Strong Profit Growth Amid Strategic Shifts

NAHL Group plc reported a significant increase in underlying operating profit for the first half of 2025, driven by reduced marketing costs and overheads in its Personal Injury business. The Group also saw a substantial rise in free cash flow, leading to a reduction in net debt. In the Consumer Legal Services division, while revenue slightly decreased, operating profit surged due to strategic investments in new lead generation channels. Meanwhile, the Critical Care division experienced modest revenue growth, with high demand for expert witness services but a decline in case management revenue. The Board is exploring options to enhance shareholder value following the cessation of the sale process for Bush & Co.

NAHL Group Plc Announces Change in Voting Rights

NAHL Group Plc, a UK-based company, announced a change in the breakdown of its voting rights, with Harwood Capital LLP now holding 18.94% of the voting rights, down from a previous 19.42%. This change could impact the company’s governance and decision-making processes, potentially affecting its strategic direction and stakeholder interests.

NAHL Group Plc Announces Change in Major Holdings

NAHL Group Plc, a UK-based company, has announced a change in its major holdings. Colebrooke Partners IM Limited, based in London, has reduced its voting rights in NAHL Group Plc to less than 3%, down from a previous position of 3.27%. This change in holdings could impact the company’s shareholder dynamics and influence its strategic decisions moving forward.

NAHL Group PLC Secures Shareholder Approval for AGM Resolutions

NAHL Group PLC announced that all resolutions proposed at its Annual General Meeting were passed, reflecting strong shareholder support. The resolutions included the approval of the annual report, directors’ remuneration, auditor appointments, and share allotment authorities, indicating a stable operational outlook and strategic alignment with shareholder interests.

NAHL Group Confident in Meeting Market Expectations for 2025

NAHL Group PLC announced at its AGM that the momentum from the first quarter has continued into the second quarter, and the Board remains confident in meeting the full-year market expectations. The company plans to release a trading update for the first half of 2025 in July, indicating a stable outlook and potential positive impact on its operations and market positioning.

NAHL Group Ends Sale Process for Bush & Co. Without Deal

NAHL Group plc announced the conclusion of its attempt to sell its Critical Care business, Bush & Co., without a successful transaction. Despite interest from multiple bidders and detailed discussions with two final parties, the proposals did not meet the Board’s expectations for shareholder value. The company is now evaluating its options and will provide updates to shareholders as necessary.

NAHL Group PLC Announces 2024 Annual Report and AGM Details

NAHL Group PLC has announced the posting of its Annual Report and Accounts for the year ending 31 December 2024, along with the notice for its upcoming Annual General Meeting (AGM) scheduled for 26 June 2025. The company is offering shareholders the flexibility to attend the AGM online, although online attendees will not be able to vote or participate actively. Shareholders are encouraged to submit proxies early to ensure their votes are counted, and the results will be published post-AGM. This move reflects NAHL’s continued adaptation to modern shareholder engagement practices.

NAHL Group Issues New Shares Following Employee Option Exercise

NAHL Group plc has announced the issuance and allotment of 25,000 new ordinary shares following the exercise of share options by certain employees. This move will increase the company’s total issued ordinary share capital to 48,008,103 shares, each with one voting right. The new shares will be admitted to trading on AIM, with dealings expected to commence on 29 May 2025. This development is significant for shareholders as it affects the total number of shares and voting rights, which is crucial for determining changes in shareholding interests under the FCA’s Disclosure Guidance and Transparency Rules.

NAHL Group Issues New Shares Following Employee Option Exercise

NAHL Group plc has announced the issuance and allotment of 25,000 new ordinary shares following the exercise of share options by employees. These shares will be admitted to trading on AIM, increasing the company’s total issued ordinary share capital to 47,983,103 shares. This move reflects the company’s ongoing efforts to manage its share capital and could impact shareholder calculations regarding their interests in the company.