National Accident Helpline looks to float on the stock market

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One of the country's best known claims management companies, National Accident Helpline, has announced that it will seek to float on the stock market in May.

 

In a statement issued on 22 April, the company said that it was targeting a presence on AIM with the London Stock Exchange which would value the business at about £100m.

 

The company, advised by bankers at Espirito Santo, is looking to raise around £50m through shares.

 

Established in 1993, NAHL describes itself as one of the largest outsourced marketing services providers to the personal injury market and told potential investors that it is able to attract over 200,000 consumer contacts per annum.

 

"Reflecting the Group’s historically high cash conversion ratio, and assuming sufficient distributable reserves, the Directors intend to target a dividend of approximately 66 per cent of retained profits in each financial year, including the year ending 31 December 2014," said the company in its statement.

 

In the year ended 31 December 2013, NAHL posted revenues of £39.7 million and a profit of £9.8 million a 43% increase from the year before.

 

Russell Atkinson, the chief executive officer at NAHL, said that the company felt that it was now a natural time in its development to become a public company.

 

“We have a long track record of consistent and profitable growth with a highly cash generative business model which we expect will deliver an attractive yield for investors.

 

"The legislative changes that were introduced in April 2013 have been embedded and we believe an IPO will provide an excellent platform for the Group to take advantage of the significant growth opportunities that this legislation has created,” he said.

 

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Mark Dugdale is the editor of Claims Media. Mark welcomes articles, letters or feedback from readers and can be reached via mark.dugdale@barkerbrooks.co.uk