One of the biggest personal injury firms has reported a wafer-thin profit for 2021 after what it describes as a ‘year of strategic progress’. In the year ending 31 December, NAHL today reported a profit before tax of £200,000, turning around a loss of the same amount in 2020. 

Revenue decreased by 4.7% to £38.9m as the pandemic continued to hit the number of claims. 

The business, which previously acted as a claims management company for other firms, continues to evolve to keep more enquiries for its own alternative business structure, National Accident Law (NAL). Cash received from settled claims in NAL increased by 62% to £2.1m. At the year-end, the group had almost 8,000 ongoing claims in NAL, up from 2,975 at the end of 2020, which are expected to generate £8.4m.

James Saralis, NAHL chief executive, said: ‘2021 was a year of strategic progress for the group despite the continued difficulties presented by the Covid-19 pandemic. We progressed on our key objectives, increasing enquiries placed into NAL, reducing our reliance on joint-venture partnerships and growing our ongoing claims in NAL at year-end by 166%.

‘In critical care, we increased revenues by 9% largely due to successful new business development initiatives, with expert witness volumes up 21% year on year. The group achieved this while reducing net debt and remaining profitable.’

Claim figures were heavily affected by the lockdown and resulting reduction in vehicle use. Overall, the business generated 32,132 new enquiries in 2021, down from 36,214 in 2020.

NAHL said personal injury volumes were 42% up in the first two months of 2022 compared to the same period last year, when the country was in strict lockdown.

Despite the optimistic tone, the board said it is not appropriate to reinstate dividends. NAHL shares were unchanged today at 45p.

 

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