FOLLOWING assimilation into the UK, Slater & Gordon have reported a 40 per cent stronger performance from the previous financial year and announced the likelihood of further acquisitions.
Revenue, earnings and cash flow all exceeded full year guidance for the multinational Australian-headed law firm.
Total revenue stood at $418.5 million, up 40 per cent from the previous corresponding period, while net profit after tax increased 47.2 per cent to $61.1 million.
Cash flow from operations of $54.8 million was 89.7 per cent of net profit after tax.
Slater & Gordon group managing director Andrew Grech (pictured) says the results were emblematic of a successful growth strategy stretching Australia and the UK.
“The (five) businesses acquired in the UK are running smoothly and the integration of all acquired firms is well progressed,” says Grech.
“We have been delighted by the response to the launch of the Slater & Gordon brand which along with Claims Direct is delivering underlying revenue growth of 8 per cent year on year.”
The results come amid legislative changes to personal injury law, a division where Slater & Gordon is still performing strongly, and even perhaps growing.
The law firm also announced today the proposed acquisition of Victorian specialist personal injury law firm Nowicki Carbone and Queensland consumer law practice Schultz Toomey O’Brien.
This is to a combined estimated annual fee revenue of $39 million, with total consideration for the acquisitions to comprise payment of $45.2 million in cash and the issue of $18.8 million in Slater & Gordon shares subject to restraints on sale.
The transactions are expected to be completed in November this year.
Responding to this, Grech says assimilation into the UK and improvement in key performance metrics proves the company is well-equipped to continue growing acquisitively.
“We are now in a position to execute more acquisition opportunities in the Australian market across both personal injury law and general law,” says Grech.
“In Australia, we have undertaken several initiatives during the year focused on improving the client intake process and enhancing client satisfaction.
“The results have been very pleasing with improvement in key operational metrics such as calls answered, wait times and increased client satisfaction.”
Slater & Gordon expects total revenue of $270 million for financial year 2015, comprised 5 per cent from the personal injury practices, 10 per cent revenue growth in general law and a $25.6 million contribution from the two proposed acquisitions.
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