Slater & Gordon eyes further UK expansion after half-year results show income on target


Grech: business is in good shape

Slater & Gordon is set to grow its UK business after it announced its first half-year results since the takeover of Russell Jones & Walker (RJW).

The listed Australian firm – now an alternative business structure (ABS) in England and Wales – posted a 46.5% increase in its revenue for the last six months of 2012 of A$146m (£99m).

Since acquiring RJW for £53.8m in April 2012, Slater & Gordon said its expansion into the UK has been “progressing well”. UK revenue was A$34.3m (£23.2m) and net profit after tax was A$3.5m (£2.4m) for the half-year period.

It said: “The UK business is on track to achieve its full year earnings forecast. With a solid platform now in place, opportunities for further growth in the larger UK market are being advanced.”

In its results presentation, the company identified the ABS environment and impact of Jackson on firms that acquire clients via claims management companies as “driving consolidation of the consumer legal services market”.

Slater & Gordon’s response will be to exploit the lack of a dominant brand in the sector to “build direct to consumer brand as the law firm of choice for everyday people”. Key to this, it said, was RJW’s re-brand to Slater & Gordon, completed this month.

This mirrors efforts in Australia, where it has been running a ‘Slater & Gordon – not a problem’ advertising campaign, which the company said has delivered a double-digit year-on-year increase in total new client enquiries and has “re-positioned the Slater & Gordon brand in the market as the provider of a full range of consumer legal services for everyday people”. Like the UK operations, the firm is best known for its personal injury work.

Further, brand awareness research showed that more than 70% of Australians knew of the firm.

Across the whole business, the firm’s net profit after tax rose by 61% to A$19m, with a forecasted total group revenue for the full year to the end of June 2013 of A$290m.

Slater & Gordon managing director Andrew Grech said: “Our business is in good shape, we have strong prospects for further profitable growth and we have the resources and the people to be able to deliver it.”

Tags:




    Readers Comments

  • This seems to be a very well run business which will cut a swathe through the more average firms.

    Of course the word “average” above refers to financial management rather than legal ability.


Leave a Comment

By clicking Submit you consent to Legal Futures storing your personal data and confirm you have read our Privacy Policy and section 5 of our Terms & Conditions which deals with user-generated content. All comments will be moderated before posting.

Required fields are marked *
Email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Reports

Our latest special report, produced in association with Temple Legal Protection, looks at the role of after-the-event (ATE) insurance in commercial litigation post-LASPO. We are at a time when insurers, solicitors, clients and litigation funders work ever more closely to create funding packages that work for all of them, with conditional fee and even damages-based agreements now part of many law firms’ armoury.

Blog

18 October 2019

Will your staff have confidence in your compliance officers?

The introduction of the SRA Standards and Regulations on 25 November 2019 will see new issues coming into focus for you and your firms over the reporting of serious breaches to the SRA.

Read More

Loading animation