Slaters’ half-year profits soar to $23m
Slater & Gordon has increased its half-yearly profits by 21 per cent as it accelerates its expansion into the UK.
The firm’s net profit was $23 million in the six months ending 31 December. Total revenue rose to $178 million, an increase of 22 per cent.
Slaters announced five UK acquisitions during that period. Four have been completed, with the deal to acquire Pannone Solicitors due to be finalised this month.
Slaters claimed that its UK acquisitions are on track to deliver $70.5 million in revenue for the 2014 financial year (FY14). The firm also maintained its previous revenue guidance for FY14 of $395 million, including revenue from the acquired businesses.
Andrew Grech (pictured), Slaters’ managing director, said that once the Pannone deal is sealed, Slaters will have secured around five per cent market share in the UK claimant personal injury market.
“The performance of the UK business demonstrates that our strategic rationale for entering the UK market is sound, and that whilst still early days, is being executed effectively,” he added.
In Australia, Slaters’ personal injuries practice accounted for seven per cent of the revenue growth on the previous half of the year, while the personal legal services arm, including family law and conveyancing, are “making solid progress”, the firm stated.
Slaters took over Perth firm Gibson & Gibson in August and Sydney firm Keddies in 2011. A number of Keddies lawyers were embroiled in an overcharging scandal in the months leading up to the acquisition.