The results, the firm said in its announcement to the market, show that the company “continues to improve and continues to lay strong foundations for future growth”.

It reported a net profit after tax of $14.5 million, an increase of 16 per cent from last year’s net loss after tax of $1.2 million. Net revenue for financial year 2021 was $197.4 million (up $25 million from 14 per cent on last year’s mark of $172.4 million).

Elsewhere, earnings before interest, tax, depreciation and amortisation (EBITDA) amounted to $46.6 million compared to $35.3 million in FY20 (up 38 per cent), the EBIDTA margin was 24.6 per cent (up 410 bp), and gross operating cash flow was down 43 per cent to $14.5 million, from last year’s mark of $25.3 million.

The improved cash-flow figures reflect the company’s growth in work in progress, it proclaimed, “with fees billed being slightly down on FY20 in part due to the impacts of COVID-19 and the Company’s ongoing investment in transformation and future growth”.

The results also showed total revenue and other income from continuing operations of $203.4 million (up from $178.3 million in the prior corresponding period), a net profit before income tax from continuing operations of $21.3 million (PCP: net loss of $199,000) and a net asset position of $180.5 million (PCP: $162.3 million).

Expenses related to continuing operations were slightly up, at $182.2 million compared to $178.5 million in FY20. However, the Company said that this reflected increased labour costs and investment in marketing and technology to support growth and transformation.

The age of coronavirus does not appear to have had a material impact on the company’s financial performance, it proclaimed.

VIEW ALL

“There has been no impact to asset values and total revenue has been at least in line with the Company’s pre-COVID-19 trajectory,” it wrote.

“The continued impact of the pandemic, including, in particular, the continued imposition of government restrictions and the broader impacts on the Australian economy, may impact the Company’s performance in FY22.”

Speaking about the results, chief executive John Somerville said: “It is pleasing to see the Company’s strategy is delivering results not only in our financial performance, but for our people and our clients. However, there is still more work to do as we build the legal firm of the future.

Most importantly, our results reflect the dedication and passion of our people for making tomorrow start today for our clients.”

The news follows the release of financial year results from Shine Justice Ltd (ASX: SHJ), otherwise known as Shine Lawyers, in which that listed firm reported – among other things – an 18 per cent increase to net profits and shareholder dividends.