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Slater and Gordon LLP accounts show profits down and liabilities up in rocky period for listed firm

Slater and Gordon (S&G) which wrote down much of its UK business in February, has posted its LLP accounts for 2015, revealing while turnover was up and liabilities increased significantly at the PI firm.

The firm revealed earlier this year a £493m global loss for the six months to 31 December 2015, further details of its UK component’s financials were made public on Companies House today, covering the year for June 2015. 

The accounts show UK fee and service revenue was up 51.2% from £101.7m to £153.8m, while a goodwill impairment of £269m, announced in February, drove the firm’s loss for the year down to £251.2m. Before the goodwill impairment and tax, profits were up 14.1% from £20.4m to £23.2m.

According to the accounts, profits for the year had improved before the goodwill impairment, directly attributable to the acquisitions of Walker Smith Way and Leo Abse Cohen, and general increases in fees across both personal injury and general law.

The results show that Quindell, now known as Slater and Gordon Solutions, contributed £19.7m in revenue but made a post-tax loss of £2.45m for 2015.

S&G’s UK current liabilities rocketed to £334m from £146.5m, as long term borrowings escalated to £307.8m from £40.4m.

In February, S&G announced its plans to restructure its UK operation, as it announced disappointing global results including the goodwill impairment. It had a two month window until the end of March from its banks to deliver a repayment plan by the end of this month for its debt of A$741m. However it has remained silent on what agreement, if any, has been reached.

At the end of last month the firm’s general counsel and company secretary Moana Weir resigned after spending just two months at the firm. In February the firm’s UK chief, Neil Kinsella, announced his retirement as UK head of general law, with Siri Siriwardene replacing him.