NAHL, the U.K. legal-services company, announced on Wednesday that it anticipates its full-year results to align with market expectations after achieving in-line revenue and profit in the first half of the year.
In the first half, NAHL expects to report a pretax profit of £100,000 ($129,030), matching the prior-year’s figure. This steady result can be attributed in part to increased borrowing costs stemming from higher U.K. interest rates. Moreover, the company projects revenue for the same period to slightly surpass that of the previous year, reaching £21.0 million compared to £20.7 million.
Despite this positive performance, NAHL foresees a decrease in operating profit from £2.3 million to £1.8 million. This decline is mainly due to the company’s investment in new claims within its subsidiary, National Accident Law, as well as the planned reduction in claims still awaiting settlement in its joint venture partnerships.
Notwithstanding these challenges, NAHL remains optimistic about achieving its full-year targets in line with market expectations. According to Allenby Capital analyst Ian Jermin’s estimate sourced from FactSet, the company is projected to generate sales of £43.5 million and a pretax profit of £600,000.
In conclusion, NAHL’s half-year results showcase its ability to maintain stability in revenue and profit despite external factors, while also strategically investing in future growth opportunities.