Warnings For PI And Conveyancers As Volumes Still At 50% Of Previous Levels
The chief executive of the National Accident Helpline (NAHL) reported drops of between 75% and 90% in the levels seen before the UK went into lockdown in March, but is reporting an increase to 50% of the pre-lockdown levels.
The statement blamed the drop as a result of fewer vehicles being on the roads, the number of people working from home and the housing market coming to a standstill.
Although levels dropped significantly in the early weeks of lockdown, they have recovered to approximately 50% below pre-Covid levels.
The statement was positive though in how the group had handled its response to the pandemic. stating that it had ‘demonstrated a reasonable level of resilience in challenging conditions’ by using technology to deliver case management services remotely as well as ‘now restating face to face meetings as lockdown measures ease’.
One area that has had a significant impact is the new Consumer Legal Services division, which was looking to optimise the structure of the business to maximise efficiency by combining the Personal Injury and Residential Property businesses.
Chief executive Russell Atkinson warned today, at the group’s annual general meeting:
“Whilst the board acknowledges the progress being made, with the UK only recently starting to re-open, it remains too early to quantify the full impact on 2020 with any degree of certainty,
“That said, given the board’s experience in navigating change in difficult markets, I remain confident in the group’s ability to emerge from this period as a sustainable business.”
In taking ‘proactive steps’ to manage its balance sheet, the net debt of the group was £21.7m with a £25m revolving credit facility, and the group does not anticipate the need for further funding.