REG - NAHL Group PLC - Sale of Homeward Legal

NAHLAnnouncement

25/04/2023 07:00

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RNS Number : 2981X  NAHL Group PLC  25 April 2023

Prior to publication, the information contained within this announcement was
deemed by the Group to constitute inside information for the purposes of
Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations (SI
2019/310). With the publication of this announcement, this information is now
considered to be in the public domain.

 

25 April 2023

NAHL Group PLC

("NAHL", the "Company" or the "Group")

 

Sale of Homeward Legal

 

NAHL (AIM: NAH), a leading marketing and services business focused on the UK
consumer legal market, is pleased to announce the sale of its wholly owned
subsidiary, Homeward Legal Limited ("Homeward Legal"). Homeward Legal utilises
online marketing to target homebuyers and sellers in England and Wales to
generate leads and instructions which it then passes to panel law firms and
surveyors in the conveyancing sector for a fixed cost.  The subsidiary, which
has 6 employees and has been a part of NAHL since 2015, is considered non-core
to the Group's principal focus in Consumer Legal Services and Critical Care
and its sale will allow the Group to further focus on its key growth areas.

 

The consideration for the sale of Homeward Legal is to be the equivalent of
the net asset value of Homeward Legal on completion, which is subject to final
determination but is expected to be around £150,000.  Approximately £30,000
of this will be payable in cash immediately and the balance in two annual
instalments. Additionally, NAHL can receive contingent consideration in each
of the two years following completion, upon Homeward Legal achieving certain
performance milestones. The contingent consideration will be based on a share
of profits and trade debtors recovered above certain amounts.  The Board
believes that the contingent consideration will not be material.

 

Sale proceeds will be used for general corporate purposes. Furthermore, the
sale will strengthen the Group's balance sheet and have a positive impact on
the Company's gross margin.

 

During the year ended 31 December 2022, Homeward Legal generated £1.2m in
revenue and £13,000 operating profit. The purchaser of Homeward Legal is
Richard Rickwood, a former managing director of the Group's Residential
Property business.

 

James Saralis, CEO of NAHL, commented:

 

"The sale of Homeward Legal is a good outcome for all stakeholders. It is in
keeping with our strategy to build a sustainable and profitable business in
the medium term and will allow us to continue to develop the two core elements
of our business, Consumer Legal Services and Critical Care. We are confident
that under its new ownership, Homeward Legal will uphold its customer and
colleague first approach and wish the new owner and staff every success for
the future."

 

 

Enquiries:

 NAHL Group PLC                                                 via FTI Consulting

 James Saralis (CEO)                                            Tel: +44 (0) 20 3727 1000

 Chris Higham (CFO)

 Allenby Capital (AIM Nominated Adviser & Broker)               Tel: +44 (0) 20 3328 5656

 Jeremy Porter/Vivek Bhardwaj (Corporate Finance)

 Amrit Nahal/Stefano Aquilino (Sales & Corporate Broking)

 FTI Consulting (Financial PR)                                  Tel: +44 (0) 20 3727 1000

 Alex Beagley                                                   NAHL@fticonsulting.com

 Sam Macpherson

 Amy Goldup

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 in the
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 Your Law, Law Together and National Accident 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
(http://www.nahlgroupplc.co.uk/) , www.national-accident-helpline.co.uk
(http://www.national-accident-helpline.co.uk/) ,
www.national-accident-law.co.uk (http://www.national-accident-law.co.uk/)
and www.bushco.co.uk (http://www.bushco.co.uk/) .

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