Some may find the UK's growing litigation culture somewhat perturbing, but it's great business for National Accident Helpline operator NAHL (NAH), which floated on Aim in May. The "direct response" marketing company, which passes on personal injury claims to a panel of law firms, is growing profitably and benefiting from industry consolidation. And its shares trade at a lowly earnings multiple and boast an eye-watering prospective yield.
- Large forward yield
- Market leader
- Cheap rating
- Strong sales and profit growth
- Enquiry volumes vary
- Dependent on partners
NAHL targets the £3bn personal injury market, with a particular focus on claims for non-road traffic accidents and medical negligence, which accounted for three-quarters of the enquiries it received last half. Those are more complex and time consuming than 'fender-bender' cases, and typically result in higher settlements for law firms. They are also growing 15-20 per cent a year, as consumers become increasingly aware of their litigation options off the road.