Alternative business structure (ABS) Quindell has posted a huge revenue increase in the first half of 2014 with its Legal Services Division bringing in £179.6m, 139% up on H1 2013.
Quindell’s legal services division, which trades under several names including The Compensation Lawyers and Compass Law, reported an increase of £104.5m in its revenues from the £75.1m it brought in during the first half of 2013.
The division’s earnings before interest, tax, depreciation and amortisation (EBITDA) grew an enormous 223% to £101m from £31.2m for the same period – more than three times the figure last year. The number of cases also increased considerably from 33,400 to 82,350, up by 146.5%, while gross sales rose by 135.7% from £79.1m to £186.5m.
The company also recruited Stefan Leon Borson as group chief legal and communications officer, who joins from Redbus Media Group where he was chief executive. He has broad experience in law, corporate finance and commercial and operational management. He qualified as a solicitor in 2000 at Addleshaw Goddard.
Quindell chairman Robert Terry said: ‘I am delighted that Stefan is joining Quindell and complements our other recent appointments to strengthen the executive leadership team. His broad experience in combining legal expertise with commercial and operational implementation will be of great benefit to Quindell as we continue to grow.’
Quindell gained its ABS licence from the Solicitors Regulation Authority in December 2012, which saw the company acquire of three law firms Silverbeck Rymer, Pinto Potts and The Compensation Lawyers and has since added further brands.
The insurance market has seen further conversions to ABS’ in the last year UK personal and business insurers in particular entering the race to provide direct legal services to their customers. Some of the more recent entrants include finance company Fairpoint Group, which announced its intention to acquire Leeds-based Simpson Millar in April 2014 – a former acquisition target of Slater & Gordon’s last year – for an initial consideration of £9m payable in cash and shares with a further earn-out consideration of up to £6m payable in cash and shares over the next two years.