Personal injury claims firm NAHL is set to clear all debt after strong financial performance in the first half of 2026. Its revenue climbed 5% to £18.3 million, while pre-tax profit surged 31% to £2.3 million. A £1.9 million resolution of a long-running supplier dispute, expected this month, and the planned sale of its subsidiary Searches UK for £1.2 million will further strengthen its finances.
The sale of Searches UK, a provider of conveyancing searches, has already secured unconditional approval from the Competition and Markets Authority. NAHL anticipates finalizing the deal soon, pushing it toward a net cash position. Since last year, its net debt has dropped 66% to £1.1 million, the lowest figure since its 2014 AIM listing.
Revenue from legal services for consumers rose 7% to £9.9 million, fueled by a 12% increase in claims handled by its main operation, National Accident Law (NAL). Underlying profit in this division jumped 41% year-over-year. The company recorded 7,260 new cases, an 11% rise, though costs per enquiry increased. NAHL credited the growth to higher-quality leads, with a stronger mix of cases.
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Enquiries were allocated differently this period: NAL handled 2,100 (down from 2,200 last year), while Law Together, its joint venture with HCC Solicitors, took 1,840 (up from 1,610). The rest went to external firms. NAL also cut average claim settlement times through process upgrades, though average claim values increased due to more litigation cases.
Fewer settlements are projected for the second half of 2026, as fewer cases have been directed to NAL over the past two years. This could reduce settlement-related revenue and cash flow. CEO James Saralis acknowledged the trade-offs in managing claims: NAL delivers the highest returns but requires longer payout periods, while external firms generate faster cash flow at lower margins. Law Together balances both approaches.
The company’s financial recovery depends on closing the Searches UK sale and finalizing the supplier settlement. With debt nearly eliminated and revenue growth stable, NAHL’s next challenge is maintaining operational efficiency while adjusting to shifting claim volumes and settlement cycles. Success will hinge on whether its process improvements can keep driving performance.