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‘Disciplined’ approach to impact Slater and Gordon’s revenue
The chair of Slater and Gordon says a disciplined approach to controlling costs has seen revenue above target in four months since the firm posted its full-year financial results.
Emma Musgrave
In his address to the 2022 Annual General Meeting yesterday (17 November), Slater and Gordon chair James MacKenzie spoke on how the firm has been performing since it delivered its full results for the financial year ending 30 June 2022.
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The results showed Slater and Gordon’s net profit after tax (NPAT) dropped to $2.2 million, down from $14.5 million in FY21, marking an 85 per cent decrease. Net revenue also fell 10 per cent to $182 million.
The results also revealed earnings before interest, tax, depreciation and amortisation (EBITDA) came in at $29.3 million, compared to $48.6 million in the last financial year, while gross operating cash flow figures were down to $6 million from last year’s figure of $15.4 million.
Despite the results at the time, Mr MacKenzie assured shareholders the firm was showing signs of improvement.
In his address yesterday, he reiterated this, noting that revenue performance for the four months through to the end of October 2022 is “above revenue performance for the prior corresponding period in 2021 and has continued the trend of improved revenue performance achieved in the second half of FY22”.
“Thanks to the efforts of the whole S&G team, we have begun FY23 with significant momentum, building upon the strong recovery we experienced in the second half of FY22,” he said.
Mr MacKenzie made special mention of the settlement of three consumer credit insurance class actions against CBA, ANZ and Westpac (subject to court approval), reported earlier this month.
“We announced the settlement of three consumer credit insurance class actions against CBA, ANZ and Westpac, meaning up to a million customers will be eligible to get some of their money back for consumer credit insurance they were sold,” Mr MacKenzie said.
“... We saw a turnaround in personal injury enquiries, new file openings and matter progression in the second half of FY22 as lockdowns and restrictions eased, returning to pre-pandemic levels.”
Going forward, Mr MacKenzie said he expects these trends to continue, noting the firm is well positioned to continue its turnaround.
“We expect these trends to continue should the macro environment remain supportive, noting that our business, like many others, is facing challenges of retaining and attracting appropriate staff,” he said.
“... We have continued to be disciplined in controlling costs while ensuring our team is well supported and resourced to deliver outstanding client outcomes, leading to what we believe is a healthy operating margin.
“There is no doubt that the past two years have been challenging for all, but these results demonstrate that the company’s strategy is continuing to deliver transformation and growth. Most importantly, our commitment to our clients is unwavering.”
